Annual Report on Mineral Tenement EL 27961 Year 5

Abstract

AMI Resources Pty Ltd organised and conducted samplings and fieldwork in March 2015, and collected 20 rock samples from several targeted areas (areas of interests). The area around and adjacent to the Davidson?s workings appears to be completely soil covered, with little or no outcrop or subcrop evident. The ground surface for some distance around the workings was observed to be disturbed. This is clearly bulldozing conducted probably in the last 10-20 years, on the mining claim which then covered the workings, as an aid to metal detecting for coarse gold shed from the mineralised veining. Vein quartz is quite common at surface in this area but, because of the bulldozing, any original locations, extent or concentrations of quartz float (or subcrop) have been obliterated, so there is nothing to indicate if there are other veins in the area adjacent to Davidson's workings, or if all the quartz derives from the single vein targeted by the old workings. Sample DVD-02 assayed 2.73 g-t gold, confirming mineralisation here - previous sampling has returned assays of the order of 1.5 to nearly 3 g-t gold. This sample was also elevated in arsenic, copper, antimony and tungsten (120 ppm As, 685 ppm Cu, 30ppm Sb, 30 ppm W) and very strongly anomalous in bismuth (1338 ppm Bi). The other samples were also anomalous in copper (186, 325, 195 ppm). The bismuth association is characteristic of the ironstone-related gold deposits of the Tennant Creek region further north (also in Warramunga Formation rocks) but there is no evidence of ironstone associated with Davidson's. Sample DVD-05 was also anomalous in gold (0.15 g/t) and bismuth (120 ppm) and copper (300 ppm). It was also notably elevated in lead (110 ppm - twice the value of the other samples). This sample was from the west end of the Davidson's quartz vein outcrop, about 15 metres beyond the excavations on the vein. This assay confirms that mineralisation (albeit low grade) is not confined to the part of the vein where the old workings are. Sample DVD-05 of the porphyry rock (mullock) from the old workings, assayed below detection in gold. This suggests that the gold mineralisation is confined to the quartz vein, with nothing of interest in the adjacent rocks. A high potassium assay for this sample (4.67 % K) is inferred to confirm the feldspar-rich nature of the porphyry. Sample DV-02 was similarly elevated in potassium, suggesting it was of similar rock. Sample DVD-05 was from a small quartz vein subcrop to the northeast of the Davidson's workings, striking parallel to the Davidson?s vein. Assays indicate no anomalism, however, and no elevation in the elements which are anomalous at Davidson's. An old vehicle track into the Priester gold occurrence area site in the west of the Licence, about 9.3 km northwest of Kurundi Station, is still driveable to a point about 7.3 km from Kurundi and about 2 km from the workings. Beyond this the track is almost completely overgrown, and access on foot is up a valley through very spinifex-rich country. The main quartz vein here appears to be barren-looking 'bucky' white quartz, at least 2-3 m thick and dipping very shallowly to the west. It appears to thin to the south (in the wall of the valley to the south) but extends into the valley to the north. Since it is shallow dipping, reasonably thick, and crossing a ridgetop, white quartz outcrop is extensive. Scattered pits and shallow shafts in this vein were seen in a number of places over an area of about 250 m x 80 m, extending southwest-northeast, from the divide in the southern east-west valley to near the floor of the northern east-west valley. These are all, or nearly all, inferred to be exploratory only, without having found or produced any gold. The quartz in and around them appears very barren. The fact that the mineralised quartz in the Priester?s workings is so different from the bulk of the large white quartz vein suggests that the main vein itself (the large white vein) may have little mineralisation potential, and the mineralised quartz may be a minor structure post- (or pre-) dating the main vein, though probably exploiting the same structure. The extent and dimensions of the main vein are therefore probably no indication of what size or continuity potential the mineralised quartz might have. Samples PRS-01 and PRS-05 returned 1.58 g-t and 7.82 g-t Au respectively. Other four samples returned low-grade gold assays, of the order of 0.1 to 1 g-t gold. Several samples were below detection, and it is likely that these represent the main thick, shallow-dipping white quartz vein at this site. The shear was 5-15cm thick, comprising quartz veining and bleached wallrock material. This suggests that gold mineralisation post-dates the main thick white quartz vein (or is from a later stage in the same veining event) and therefore the large vein is no indication of how muchmineralisation might be present.