McArthur Project First Group Annual Report GR367 EL 27711 - 09 July 2014 to 08 July 2015, EL 30085 - 11 April 2014 to 08 July 2015

Abstract

The McArthur River Project is operated by Enigma Mining Limited (Enigma), a wholly owned subsidiary of TNG Ltd. The project comprises two exploration licences, EL 27711 and EL 30085, which lie in the McArthur Basin and in the southwestern portion of the Batten Fault Zone. EL 27711 was granted on 9 July 2010 and EL 30085 on 11 April 2014. Group reporting was approved in May 2015 (GR367) with a reporting period of 9 July to 8 July. This is the first group report to be submitted. A drilling collaboration proposal was submitted to the DME in April 2014 and funding was received to undertake stratigraphic drilling within the McArthur licences. Two diamond holes were drilled for 352m through the prospective Wollogorang Formation. The drilling programme has proved successful with sampling of the drill core returning anomalous intersections within the Wollogorang Formation. Numerous sulphides are present and results of over 0.2% have been returned for both zinc and copper. Further work is warranted. Soil pXRF sampling across the northwestern part of the Wollogorang Formation and the western copper zone further defined anomalous areas. Anomalous Zn-Pb in the central Ovoid Beds, to 401ppm Zn and 174ppm Pb northwest of original AGPL sampling provided incentive to extend the sampling programme through to the NW tenement boundary in the future. A routine cross-section traverse related to the drilling resulted in the discovery of a significant area of surface outcropping rocks containing malachite and chalcocite. They were located in a large zone of brecciated shale near the base of the prospective Wollogorang Formation to the west of hole 14MCDDH002, the western copper zone. A rock sample from this area (MC15001) was taken and sent to ALS for multi-element ICP analysis. Copper returned greater than 40%. As a result, a mapping and sampling (soils and rock) programme was undertaken. Detailed geological mapping at 1:2500 was completed and 48 rock samples were collected and analysed. Anomalous copper to 1000ppm returned from pXRF soil sampling in the western copper zone has encouraged followup exploration and additional mapping and sampling should take place prior to shallow drilling, in order to further outline the anomaly. Nineteen rock samples returned greater than 1% Cu and all anomalous samples came from a shale band in the lowermost Wollogorang Formation. This shale (Pto1) is approximately ten metres thick and bound below by the Settlement Creek Dolerite and above by a dolomite subunit within the Wollogorang Formation (Pto2). Silver, gold, bismuth and molybdenum also returned anomalous results from within highgrade copper samples. Further exploration within the area is warranted.