Annual Report for GR012/09, MCN 4902, MCN 4903, MCN 4904, MCN 4905, MCN 4907, MCN 5193, MCN 5194, MCN 5195, MCN 5196, MCN 5197, MCN 5198, MCN 5199,MCN 5200 Priscilla Line Group for the year ending 7 August 2013

Abstract

During the year under review, three RC holes for 288m were drilled on EL 10120, in the area covered by MCN 5193 and MCN 5196. Limited mapping of the area in the vicinity of the drillholes was carried out as part of the planning process. Bulk sampling of eluvial and alluvial material continued as part of the small scale alluvial gold mining operation carried out by Dale Page and associates with approximately 10,000BCM of material stockpiled for future processing.. Rehabilitation of recent drilling was completed. RC Drilling. Three holes were drilled by contractor May Drilling using a HD900 Multipurpose rig with 350psi/900cfm air-compressor and booster. Samples were collected through a cyclone and split through a riffle splitter. All samples were geologically logged. The entire hole was composite sampled by spear sampling in 4m composites. Composite samples were submitted to North Australian Assay Laboratories of Pine Creek (NAL) for analysis of Au by Fire assay and Ag, Cu, Pb, Zn and As by ICP-OES. When a 4m composite exceeded a certain threshold, the individual metre split samples making up the composite were submitted to NAL for analysis of Au by Fire Assay and As by ICP-OES. Holes TPCRC178 and TPCRC179 were drilled to follow up a high grade mineralised interval (TPCRC159, 1m at 900ppm Au) returned from drilling carried out in 2011, in the hope of outlining a small high grade gold resource. The drilling confirmed the presence and continuity of the gold mineralised structure (west dipping quartz veining near a lithological contact on the western limb of a tight anticline) as defined by both geological logging and assays, but the extremely high grade of TPCRC159 could not be replicated. As the Priscilla Reefs are well known for shedding coarse gold, it is assumed that the intercept in TPCRC159 represents an anomalous outlier (nugget effect) and that the results in TPCRC178-179 may be more representative of the overall zone, which makes it a less attractive exploration target. TPCRC180 was drilled to test the central hinge area of the Red Hill Anticline where costean samples obtained by Geonorth in the late 1980's had returned highly anomalous gold values. It was not possible to accurately locate and verify the location of the costean beyond a general area due to poor geographic referencing in the original reports and due to disturbance caused by 30 years of alluvial mining, including a number of new costeans and trenches. TPCRC180 intersected weak gold mineralisation near surface, partly substantiating the costean results and at depth, associated with a pyritic band. It is possible that TPCRC180 has been collared too far to the east and thus has failed to intersect the potentially more prospective western limb of the anticline.