Group Annual Report for EL 28656, EL 29022, EL 26831, EL 26833, EL 26835, EL 26836, EL 30048, EL 30137, EL 30152, EL 30156 and EL 30158 North Batten Group, 30 September 2013 to 29 September 2014

Abstract

On 29 May 2013, MMG Exploration Pty Ltd (MMG) executed a Joint Venture Agreement (JV) with Sandfire Resources NL (Sandfire). A total of 11 exploration licences are held and are referred to as the North Batten Combined Reporting Area, in the McArthur region of the Northern Territory. The North Batten Project Area is situated within the highly prospective Batten Fault Zone of the McArthur Basin. The exploration target for MMG is lead-zinc deposits in carbonates of the McArthur Group. Since commencement of the JV, MMG has conducted a systematic desktop review of past exploration and existing interpretations based on structure, stratigraphy and geochemistry. Initial field reconnaissance was conducted to assess access into areas for proposed drilling, and logistical restrictions. During the first year of tenure (i.e. 2006 - 2007), review of open-file IP Survey data was completed and followed-up with ground IP surveys at the Coppermine Creek Fault Zone and Apollo Prospect. Compilations and interpretation of airborne magnetic - radiometric (Mag-Rad) and electro-magnetic (AEM) from previous surveys was also completed. From 2007 to 2008, 4176.5 line kilometres of AEM using the TEMPEST system were flown, IP surveys of 12 line km at the Copper Mine Creek prospect and 12 line km at the Apollo prospect were completed. Southern Geoscience Consultants merged data of the NTGS with historical Mag-Rad surveys of the Batten Trough then re-interpreted them as TMI and 1VDTMI contours and profiles. Baigent Geosciences reprocessed the compiled historical Mag-Rad surveys, and presented them as TMI and 1VD magnetic and radiometric images. Prospect diamond drilling comprised 3 holes at Copper Mine Creek, 1 hole at Apollo and 6 holes at Yalco. All holes were testing either IP or AEM geophysical targets. The only significant geochemically anomalous result was from Copper Mine Creek which intersected three intervals with Pb values up to 1.14%, weak Cu up to 780 ppm, and intermittent Ba up to 1672 ppm, within hydrothermal fault breccia. However five of the holes at Yalco intersected favourable Barney Creek Formation, adjacent stratigraphy and debris breccias; akin to ore hosting stratigraphy at the McArthur River HYC deposit. Petrology was completed on 11 drill core samples and 3 rock samples. Down-hole conductivity and gamma surveys were also conducted at five drill sites Rock chip, soil and ant-hill sampling was also conducted. A regional scale structural and geological interpretation of the Batten Fault Zone was compiled using ALOS-AVINIR imagery (10m resolution) and ASTER satellite image data. The study advanced new concepts in regard to structures with the Batten Fault Zone of the McArthur Basin, generated from a 2002 seismic survey. From 2008 to 2009, detailed ground gravity surveys were completed at two prospects, Yalco and Warramana. Geotech Airborne Limited carried out a total of approximately 1,235 line km helicopter borne VTEM survey over eight locations, including in-fills. Drilling entailed five new holes and extending BD-16. From 2009 to 2010, reconnaissance mapping and sampling was carried out at the Hells Gate Iron Ore Prospect, and at Nathan River and Butterfly Springs Stations for diamonds. Database entry of down hole geology logs, sampling and analyses from the 2008 manganese drilling was completed, and the final CSIRO interpretation of the 2008 Airborne VTEM surveys was received. From 2010 to 2011, five prospect areas were targeted; northern Emu Fault Zone for HYC-SEDEX-style lead-zinc, Tawallah T1 and T2 for base metal SEDEX style deposits, Yiyintyi, a conceptual unconformity-related uranium target, the Hells Gate Hingeline for iron ore, and the Alice Prospect for epigenetic lead-zinc. At Tawallah T1, significant copper mineralisation intersections over a 2.5km by 1km area were found, with a smaller enriched area concentrated around an interpreted feeder structure which resulted in an extended drilling programme. From 2011 to 2012, exploration work conducted included geological mapping, airborne magnetic-radiometric, and HeliTEM, geophysical surveys, a ground radiometric survey, RC and diamond drilling, and grid soil sampling for copper, lead-zinc and uranium targets. Between April and September 2013 exploration activities consisted mainly of the rehabilitation of drill holes collars, pads, sumps and access roads left over from exploration between 2004 and 2012 on the Farm-in JV tenements and prior tenements. In the current reporting period, database assessments and desktop studies continued. A series of helicopter-reconnaissance programs aimed to survey the tenements ground access, track conditions and potential ground works for these targets were completed in preparation for a 2014 drilling program. AAPA clearances were initiated and completed for the tracks and drill pads, as were flora and fauna assessments. A total of 1085 stream sediment samples were collected, aiming for a 25km squared catchment size. Samples were analysed twice; once using a coarse fraction (-2mm to +425mm) and secondly using a fine fraction (-185mm), to assess for proximity and homogeneity indicators. The results showed that a clear association of anomalism exists between prospects. The results will be followed up with more detailed interpretation and possibly field checking and further sampling. Eight drill-hole designs were finalized to assess key structural and stratigraphic positions. Track scoping and flagging was finalized and drill collar positions were pegged. The drilling program began in late August, with a total of 5 holes being completed during the reporting period. No sampling had been completed during the reporting period either. Logs, assays and interpretation will be included in the following years report. Three old holes, originally drilled by BHP and Sandfire were re-sampled to characterise key lithologies in the McArthur Group. Rock chip sampling was also completed to similarly characterise key features and lithologies within the McArthur Group. The proposed work programme for the coming year of tenure includes the review of relevant mineral occurrences identified in past exploration work. Stream sediment assay data will continue to be reviewed and any follow-up areas will be assessed via focused ground visits. Drilling which commenced in August 2014 will be continued until project completion, with the results being reviewed to determine the directive of further exploration efforts. Helicopter reconnaissance, mapping and drape soil surveys will also be conducted to assess key structural and stratigraphic positions, and to finalise geochemical coverage of the area.