EL 26555 Hells Gate Project 2016 Mineral Exploration Annual Report 11 September 2015 to 10 September 2016

Abstract

This annual report covers mineral exploration by Sandfire Resources NL (Sandfire) on the Hells Gate Project, EL 26555, for the period 11th September 2015 to 10th September 2016. The Sherwin Formation of the Mesoproterozoic Roper Group contains massive oolitic to pisolitic ironstone within interbedded medium to very coarse ferruginous sandstone, mudstone and shale. Work done during the reporting period includes review of the project status and a decision to offer the project for farm-in Joint Venture (JV) or sale, with a retained interest, requiring compilation of a technical and administrative dataset to offer under Confidentiality Deeds to interested parties. A 12 hole RC drilling program (13HGRC001-012) was completed between 25th October and 4th November 2013. The program was designed to test the structure, thickness and continuity of the mineralised Sherwin Formation oolitic iron oxide horizons within the Hells Gate prospect. Results returned were in line with expectations for samples barren of observed iron mineralisation. Rehabilitation of RC drill pads and access tracks was completed during the previous reporting period. Work included the removal of sample bags, scarification of RC drill pads and tracks and the spreading of vegetation. A DME Mining Environmental Compliance Branch Audit inspection was carried out during the week of 20 September 2015, and reported in the 2015 MMP Authorisation Amendment Report. Work proposed is designed to extend the size of the known ironstone mineralisation along strike from the Western Desert Resources Roper Bar iron ore mine. This will consist of ground truthing existing magnetic and gravity data and potential small scale ground magnetic and gravity surveys to confirm future drilling locations.