Combined Annual Report for the Lone Star Group MCC's 316 - 317 and 340 - 341 and MLC's 362 -375, 530 and 606 - 616 1 January 2015 to 31 December 2015

Abstract

The titles of the Lone Star Group, were acquired by Giants Reef Exploration Pty Ltd (Giants Reef) and Santexco Pty Ltd (Santexco) to search for Tennant Creek style iron oxide copper-gold deposits (IOCG). Giants Reef and Santexco are wholly owned subsidiaries of Emmerson Resources Ltd (Emmerson). This combined report records the exploration work completed on these titles during the period from 01 January 2015 to the 31 December 2015. No exploration activities were conducted due to the focus of exploration at the Mauretania and Billy Boy areas north and east respectively from the Lone Star Area. The airborne magnetics survey flown to assess the Billy Boy area covered a portion of this title as displayed in figure 12, below, the results have yet to be processed due to the focus in the Billy Boy and Mauretania areas, the interpretation of these results will begin as soon as resources are available. Emmerson also engaged Kenex Pty Ltd (Kenex) to construct a predictive model for the Tennant Creek Mineral Field and included all titles in the Lone Star Group. This product was completed during 2015 and a number of targets were generated from the predictive modelling project, as displayed in figure 13. These generated targets have yet to be examined in detail with the aim of generating drill ready targets.