Annual Group Report GR354 EL 30809, 30824, 29717, 30128 and 30234 Mount Bundy Project for the period 1 December 2014 to 30 November 2015

Abstract

The Mt Bundy group of exploration tenements are located about 90 km SE of Darwin, along the Arnhem Highway. Most of the licences were originally granted to Renison Consolidated Mines NL, in 2003 and the project was then known as the Au Quest Project. GBS Gold Australia acquired the tenements in 2007 until going into voluntary administration in 2008. On 6 November 2009, Crocodile Gold Australia Operations (CGAO) acquired the Mt Bundy exploration licences after purchasing all assets held by GBS Gold Australia (liquidated). During 2012 CGAO entered into a sales arrangement with Primary Gold Ltd (PGO) for the Mt Bundy Project which was finalised in February 2013, since which time PGO has assumed responsibility for the exploration of the project. The Mt Bundy Project area encompasses a suite of meta-sedimentary rocks belonging to the Mt Bonnie Formation and the Burrell Creek Formation. These comprise brown to grey-green, thickly bedded to massive, fine to coarse feldspathic meta-greywacke with graded bedding in places and minor lenses of volcanilithic pebble conglomerate; brown to grey, laminated phyllite, slate and mudstone and minor quartz-mica schist. In May 2014 the Department of Mines and Energy approved an application to amalgamate the Primary Gold Mt Bundy tenements. This process reduced the number of contiguous titles in the project from 24 exploration licenses to just 2, EL 30371 and EL 30124. The move from the Australia Geodetic Datum to the Geodetic Datum of Australia in 2000 resulted in a number of small vacant ground slivers encased within the Mt Bundy Project. Primary Gold applied for these small unmarketable parcels in 2014 and was granted them in November 2014. These small slivers were incorporated into EL 30371 and EL 30124 and the amalgamated tenements were reissued in 2015 as EL 30809 and EL 30824. In 2007 Rum Jungle Uranium Pty Ltd (now Rum Jungle Resources - RJU) entered into a joint venture agreement (Toms Gully Uranium Exploration Agreement) with GBS Gold Australia Ltd to explore for uranium on EL 10382 and EL 25348 (previously SEL 25348). The agreement remained in good standing upon sale of the Mt Bundy Project firstly to CGAO and subsequently PGO, RJU completing several sampling and RC drill programs over this time. However, RJU has not undertaken any work on the JV property during the reporting period. Throughout the reporting period Primary Gold has continued the regional reconnaissance and data evaluation of the extensive historic data set. This has led to a number of reconnaissance field trips to validate the tenor, geography and geology of historic prospects, however no significant field work has been undertaken. During the reporting period a vast amount of the company's technical and financial resources have been utilised in the undertaking and completion of an Environmental Impact Statement (EIS) concerned with the re-commencement of underground mining operations at the Toms Gully mine site which is contained within EL 30809.