GR315 Combined Annual Report for period ending 31 December 2014

Abstract

A preliminary agreement was entered into with Minesite Services to further explore and bulk sample the tenements with the aim to transport sample ore to Crocodile Gold's Union Reefs mill. The director of Minesite Services, geologist Andrew Jettner had in place an agreement with Crocodile Gold to have ore toll treated at the cost rate of 1gram per tonne. In May 2014 Starr and Jettner conducted meetings and McKinlay mine site visits to locate all historical workings and to comprehensively survey all known points eg costeans, pits and drill holes with the aim to collate all known geological data and produce a 3D model of the ore body. Jettner made further visits to the mine site in June 2014 with staff to complete survey work and subsequently produced a 3D model of the known ore zones of the McKinlay. Jettner provided a report to Starr regarding survey work and modeling (Attachment 1). On the basis of the survey work results Jettner and Starr further developed the plan to carry out infill drilling and bulk sampling of the ore body. Appropriate statutory Mines Dept. permits were discussed and agreed and prepared for submission. Jettner continued to liase with Crocodile Gold, the ore cartage operator was organized. Starr met with Ban Ban Springs Station manager-owner Martin Gschwenter at the station homestead and informed him of likely activity and asked if he could identify any concerns. No concerns were articulated however Martin asked to be kept up to date with activities, which was agreed. After all physical, access road and mine site earthworks and activity timeline had been developed and a detailed financial budget for all activities agreed and all Departmental documentation requirements drawn-up for submission, Crocodile Gold changed the toll milling price from 1g-t to 2.5g-t which rendered the potential to bulk sample the ore body non viable. The reasons for the change are not known. As no disturbance to the tenement area occurred during 2014 the area remains environmentally stable with native vegetation dominating the general landscape.