Annual Report for the period 23 June 2016 to 14 October 2017 EL 24389 Cato Plateau, EL 4171 Cato River and EL 4170 Cato Plateau GR077 Cato Project

Abstract

Combined reporting of EL 4171, EL 4170 and EL 24389 was granted in June 2017 and the project called 'Cato Project' with reporting number GR077. The Cato Project forms part of the larger contiguous tenement package in east Arnhem Land, which is prospective for bauxite and manganese. These three licences (Cato project) cover the Cato plateau, which is a known occurrence of bauxite within the east Arnhem area. The Cato plateau bauxite target has the potential to contain resources similar in style to the nearby Gove deposit. BHP (now GEMCO), under the agreement with RTX, retains the right to explore for manganese on EL 4170, EL 4171 and EL 24389. When EL 24389 was granted on 23 June 2016 (for a period of 6 years), the bauxite targets identified from the data review were prioritised. A program of work was developed to initially drill test the priority bauxite targets on EL 24389 with subsequent phases of drilling extending to ground peripheral to the main plateau on EL 4170. A mine management plan (MMP) for exploration for the broader Cato Plateau Project (EL 24389, EL 4170, & EL 4171) was prepared and submitted to Government. The MMP was assessed on 21 September 2016 and authorised by the Northern Territory Mines Directorate i.e., Authorisation 0882- 01. Further work on the broader Cato Plateau Project included desktop and ground based envionrment and cultural surveys, as well as field preparations for earthworks and drilling. The Drilling program on the Cato Plateau Project (including the earthworks and drilling) was undertaken and completed from September to November 2016. Following a review of the results from this program it was decided to undertake a bulk sampling testing program in 2017 to improve our undertstanding of the potential beneficiation characterisitcs of the identified bauxite mineralisation. An addendum to the approved MMP was sought and granted which allowed this work to be completed in June 2017. The vast majority of the physical work undertaken on the plateau was completed on EL 24389; however some earthworks and drilling extended onto EL 4170.