Mount Peake Project Annual and Final Report 13 August 2009 to 29 July 2021 EL 27070

Abstract

Exploration Licence 27070 was granted to Enigma Mining Limited (Enigma) on 13 August 2009. The licence was part of TNG's Mount Peake Project Area together with EL 27069, EL 27941, EL 29578, EL 31389 and EL 31850. The Mount Peake region has been partially explored for a variety of commodities including uranium, gold, copper, nickel, iron ore, bauxite and diamonds. The licence has been renewed three times during its 12-year tenure, in 2015, 2017 and 2019. Partial relinquishments were completed in August 2013 (28 to 14 blocks) and June 2017 (14 to 7 blocks) Surrender of the licence in full was undertaken in July 2021. Exploration carried out on EL 27070 during its tenure began on a regional scale. A full literature review was carried out on the historical data and reviews of geophysical data carried out in the 2009-2010 season provided targets for follow-up work. Two RC drill holes (BGC001-002), were completed at the G9/BGC-1 Prospect in October 2010. BGC001 was drilled into a magnetic target and intersected graphitic schist at 244m. BGC002 was drilled into an outcropping copper gossan but did not return any significant results at depth. Rock chip samples from the copper outcrop were sent for analysis and all returned strong Cu, As and Co results. During 2012 samples of the graphitic schist from drillhole BGC001 in 2010 were reassayed for carbon, with results of up to 5.98 percent from 255-256m In August 2012 a HELITEM survey was flown over the BGC-1/G9 GEOTEM anomaly. Target T1e was identified and corresponds directly with anomaly BGC-1/G9. The results confirm that BGC001, drilled in October 2010 was drilled into the centre of the HELITEM anomaly and confirms that no other significant late-time conductors are present and the source was effectively tested. Diamond drillhole ARD01 was drilled by Discovery Nickel in July 2004 to 314.4m. Two separate intervals (25m and 17m thick) of graphitic biotite schist comprising stratabound, semi-massive pyrrhotite and pyrite mineralisation were intersected. The original assays did not include carbon. In June 2012 core from ARD01 was resampled for carbon with best results of 6.00 percent C from 252-256m and 260-263m. A diamond drill hole was drilled on the BGC-1 anomaly in 2014 to further investigate the graphite occurrence identified. The hole was wedged off the original hole (BGC001) and extended to 298.4m. Best intervals were 6.00m at 5.33 percent C graphite from 248-254m and 18.60m at 5.32 percent C graphite from 266.7-285.3m. A testwork program was completed by METS to determine if the graphite from Mount Peake could form a saleable concentrate (generally requiring greater than 80 percent grade). Composite samples from BGC1 achieved cleaner concentrate grades of 60-70 percent in initial work and final concentrate grades were achieved in excess of 90 percent graphite. A full project evaluation was undertaken by Exploration Manager Kim Grey in 2021. Graphite occurrences identified within EL 27070 are at greater than 200m depth. At this depth they will not likely be economic, even if of high quality and large size. Any further work in these areas is therefore not warranted. This review also ascertained that given results to date from the entire project area, any further exploration on the BGC-1/G9 target for base metals or V-Ti and elsewhere within EL 27070 is unjustified and the licence will be relinquished in full.