Annual Report on EL 27811 Winnecke Project for period 13 July 2013 to 12 July 2014

Abstract

The major progress made in the fourth year included; Completion of further desktop studies on EL 27811 tenement area, especially target generation based on previous and current geochemical analysis results, and amass databases. This has furthered our knowledge of the geological settings and mineralisation of the licensed area; and Conducted considerable fieldwork and prospecting activities, a total of 136 samples were collected for analysis during fieldwork. Most samples were from several locations along the approximately 20-kilometre trend of the Winnecke Goldfield, in the southwest of the exploration licence. Several others were collected in the far northwest of the licence. High-grade gold assay result from at Golden Goose confirms the potential for high-grade mineralisation here. Golden Goose is one of at least twelve small historic gold mines and occurrences spread over about 4.5 km (east-west) in the eastern Winnecke Goldfield. Reported historic production from these is commonly similar high grades, of about 0.5 to over 2 ounces per tonne (approx. 15 to over 60 ppm gold). Historic workings in the western Winnecke Goldfield area, centred around 'Old Camp' are sparser, but they do indicate sporadic mineralisation extending well over 10 km west of Golden Goose, and they include the reported drill intercept noted above, within a chloritic shear zone. AMI's samples near Old Camp also indicate the presence of very different mineralisation, being dominantly quite high-grade copper (nearly 10 percent) plus silver (over 160 ppm), with lesser gold and lead. The high copper grades may be partly secondary enrichment but this occurrence is still significant. In particular, given the age of most of the surrounding workings, and the gold-focus of previous mining here, it is unlikely that any 24 significant efforts were ever made here to assess its potential for other minerals. This mineralisation may have affinities with the Johnnies Reward polymetallic prospect to the north (considered to have IOCG affinities), though the host rocks are different, or with polymetallic occurrences along strike to the west (Gecko and Rankins). The other assay results are not considered significant, with the exception of the elevated uranium in the Vein III results from Golden Goose. As noted, these are probably due to secondary weathering-related enrichment. This in turn indicates the potential for uranium mobilisation and concentration in weathering processes here. As noted in the prior report on this licence (July 2010), there may be potential for secondary uranium mineralisation in Tertiary sediments in the east of the licence.