Annual Group Report ML29781, 29782, 29783, 29785, 29786, 29812 and 29814 MLN 1058 and 1083 Mt Bundy, Rustlers Roost & Quest 29 Projects 1 December 2013 to 30 November 2014 304/13

Abstract

The GR304-13 tenement group (ML29781, 29782, 29783, 29785, 29786, 29812 and 29814 and MLN1058 and 1083) is located some 110 kilometres south-east of Darwin, and incorporates the historic mining operations at Toms Gully, Rustlers Roost and Quest 29. A number of the ML's in the tenement group are a consolidation of a package of historic MC and MCN's, which were consolidated in 2013, see Table 1. Primary Gold has managed these tenements since February 2013 when they were transferred to the company as part of the acquisition of the Mt Bundy Project from Crocodile Gold Australia Operations (CGAO). The tenements are mostly underlain by sediments of the South Alligator Group, namely the Koolpin Formation, Gerowie Tuff and Mt Bonnie Formation. The exception being the Tom's Gully Group which are dominantly underlain by the older Wildman Siltstone of the Mt Partridge Group, exposed in a gently SW plunging antiform. The Mount Bundy Granite intrudes the South Alligator and Mount Partridge Groups and is central to the mineralisation located at Tom's Gully, Rustlers Roost and Quest 29. The licenses contain significant auriferous quartz vein systems. Exploration activities completed during the current reporting period include; A short diamond / reverse circulation drilling program through the Inferred area of the Tom's Gully Resource; Ongoing metallurgical test work on the Tom's Gully ore body; Preparation and submission of a Mine Management Plan (MMP) to the NTDME for the recommencement of underground mining at Tom's Gully; Review and remodel the Quest 29 Resource Model; Review Rustler's Roost Resource model for JORC 2012 compliance; Ongoing care and maintenance operations at historic sites. The company remains committed to the recommencement of operations at Tom's Gully and is currently engaged with the NTDME, EPA and stakeholders with regards to completing an Environmental Impact Statement to facilitate approval of the MMP. Additionally the company is continuing to work through the extensive legacy data set it inherited from previous operators to prioritise targets, realise value in existing data and grow the resource base for the broader project area from brownfield operations at Quest 29 and Rustlers Roost and adjoining exploration licenses also held by the company.