Annual Technical Report MCN's 506, 507, 734, 735, 738, 135, 779, 780, 822, 856, 1109, 833, and MA's 398-402 Union Reefs Project - Union Reefs Gold Mine GR192/11 16 August 2014 to 15 August 2015

Abstract

The Union Reefs Group comprises 24 tenements (MCN's 506, 507, 734, 735, 738, MLN's 51-57, 135, 779, 780, 822, 833, 856, 1109 and MAs 398-402) and is located about 170 km SE of Darwin, Northern Territory and 12 km north of Pine Creek. This group of tenements also represents the location of the one and only operating process plant in the district and currently processes the ore from the Cosmo Deeps mine, which is in development. At the end of 2014, Crocodile Gold requested to the department to relinquish the Caroline titles, (MLN 51-57) as they sit within the Mineral Lease application MLA 27999 which is known as the Esmeralda lease. During the reporting period Crocodile Gold also finalised a land use agreement with the Wagiman, Warai and Jawoyn peoples which, along with the final surveying of the lease, will allow the title to move towards grant. This report now takes into account the Elizabeth group of tenements located to the north of the Union Reefs mining camp, this area was previously reported separately but is now included in the Union Reefs group reporting. The geology of the Union Reefs mining centre is dominated by the NW striking Pine Creek Shear zone, a 300m wide corridor of folded and sheared metasediment package that largely comprises Burrell Creek Formation and structural inliers of Mt Bonnie Formation. The host sequence, including the Pine Creek Shear Zone, is confined to the east by the Allamber Springs Granite and to the west by the Tabletop and McCarthys Granites. Rocks within this zone have been tightly folded and in high strain areas, subjected to fold limb failure. Gold mineralisation extends over a length of 3.5km, 400 meters width and to a vertical depth of 300 metres. Numerous historical workings have been developed over the northwest striking Pine Creek Shear Zone and associated Union and Lady Alice Lines. The Lady Alice Line follows the axis of the Lady Alice Anticline. Mineralisation is associated with quartz-sulphide veining, compromising 1mm to 2 metre thick lode-style veins in sheared pelites, stockwork veins in greywacke and sheeted vein systems in thinly interbedded pelites and psammites. Exploration activities undertaken over the reporting period have been limited, compared to previous years, with work limited to the finalisation of the land use agreement with the Traditional Owners of the Esmeralda lease. Otherwise work completed during the year was limited to the review of mineral leases for reporting in annual company reports and for other external reporting purposes. Exploration work for the next reporting period will include a detailed review of all Mineral Resources on site to determine if they fit within a potential mine plan that will include the Esmeralda deposit to the south of Union Reefs.