Annual Report for ML 29822 Twin Bonanza 1 from 28 March 2014 to 27 March 2015

Abstract

Exploration consisted of surface sampling, trenching, mapping, XRF-ing, drilling and a resource estimate up date. On going longitudinal trenching across the Old Pirate prospect was continued with 51 trenches for 3939.7m and a total of 1,742 grab samples testing extensions plus a total of 205 rock chip samples were collected exploring new quartz veins. The Central Northern Extensions trenching approximately 100 metres north of the Central Old Pirate zone revealed multiple quartz veins returning assay results up to 9.27g-t gold. A new vein named 'Dominica' was uncovered approximately 120 metres southwest of the Bermuda Zone with an assay result of 44.9g-t gold from a 0.18 metre wide quartz vein. At the Bermuda Zone cross-trenching returned assays up to 8.52g-t gold and 4.26g-t gold and revealed narrow quartz veins and potential mineralised shear zones hosted within a diorite porphyry. At Old Glory North extensional assay results from Old Glory North include samples up to 7.31g-t gold over 0.67 metres and 3.06g-t gold over 0.85 metres. At Western Limb far-north trenching established a 300m to the north mineralised (visible gold in a quartz vein) extension. A total of 530 RC holes for 28,468m and 3 DDH holes for 549.88m for exploration plus 12 RC holes for 1,405m and 1 RCD hole for 200m for water bore drilling were completed. At the Buccaneer prospect two diamond core holes were drilled to provide core samples to determine the metallurgical characteristics of the Buccaneer ore. Results were not available at the time of writing this report. They will be included in next year's annual report. At the Cyprus prospect one diamond core hole returned the best gold assay value of 0.98ppm from the 292m to 293m depth interval. The extensional drilling totalled 26 RC holes (OPRC100206 to OPRC100231) for 2,548m formed part of a stepping out program (that also included holes with OPGC prefix) at the Golden Hind deposit, Bermuda Zone, Dominica Zone which is located between Old Glory and Bermuda, Old Pirate South, Central Zone (northern extensions) and Old Glory. The maximum gold assay value returned from the exploration holes with the prefix OPRC was 5.36g-t returned from hole OPRC100222 north of Golden Hind.at the 11m to 12m depth interval The infill - grade control drilling totalled 304 RC holes (OPGC0003 to OPGC0594) for 15,708 m. The campaign focused on the top 50 metres of the mineralised system with a view to developing the mining inventory for the open pit and enabling final pit design. The first phase of drilling with 25 metre spaced drill lines was followed up with a 12.5m infill spaced drill lines where discontinuity of assay values required it. Results were, in general, in line with expectation and confirmed the quality and quantity of mineralisation. All results were integrated in the 2014 resource up date. The sterilization drilling totalled 200 RC holes (OPST140001 to OPST140229) for 10,212m on 15 east - west, 100m spaced drill lines were completed to test the 1.5km x 0.45km designated waste dump area immediately to the west of the Old Pirate - Golden Hind deposit. The results sterilized the ground as no economic grade was returned. The water bore drilling totalled 12 RC holes for 1,405m and 1 RCD hole for 200m. The holes completed were used for hydrogeological investigations - water bores. The results indicate sufficient water quality and quantity will be available for the proposed mining operations. A total of 441 As ppm readings were recorded for the XRF analyser program. The use of a handheld XRF unit as a low cost exploration tool was trialled. Across the Tanami, significant gold deposits and targets are accompanied by broad, high level arsenic anomalies. Based on this empirical observation, an XRF program measured the arsenic response over Old Pirate, as a known gold anomalous mineral system. The trial was successful, and a series of threshold values were determined. A result of greater than 20ppm As (from HH XRF) will relate to potentially economic gold mineralisation, whereas a result of 45ppm As, or greater, will relate to potential ore grades. At the Landlubber prospect area the XRF readings confirmed the arsenic anomaly generated by a previously completed systematic soil sampling program. In January 2015, as part of the ongoing geological interpretation a new interpretation was undertaken for the Old Pirate area resulting in an interpreted solid geology map scaled 1:2,000. The fact mapping from the 2014 trenching changed the status of confidence of many faults from inferred to apparent and confirmed the prevalence of dolerite. An internal stratigraphic definition may be possible, based on the presence of several marker dolerite positions. The 2013 and 2014 trench mapping suggests that siltstone is a minor component of the sequence, and that there are relatively few 'thick' shale units. The 2014 resource estimates for the Old Pirate Deposit up date resulted in a modest reduction in tonnes and an increase in grade compared to the 2013 resource. In 2013 the estimate stated total resources with 1.88 million tonnes averaging 11.96-t (uncut) for 723,800 ounces of gold (inferred and indicated resource categories). In 2014 the estimates stated total resources with 1.70 million tonnes averaging 11.7-t (at a 300g-t top cut and 1g-t cut-off) for 640,000 ounces of gold (inferred and indicated resource categories). The February 2013 resource estimation for the Buccaneer Deposit had not changed as no new material information was acquired. In February 2015 the on ground development of the Old Pirate deposit commenced with preoperational work. No on ground mining work was undertaken during the reporting period.