Annual Technical Report Exploration Licence 28616 Moline Exploration Project for period ending 19 January 2016

Abstract

Exploration Licence 28616, (the Moline Project) is an amalgamation of seven previous Exploration Licences (EL 22966, EL 22967 EL 22968, EL 22970, EL 23605, EL 24127 and EL 24262) that surrounds the Moline goldfield. The tenements are about 245 km from Darwin via the Stuart Highway then the Kakadu Highway. This annual technical report covers the Moline exploration activities from 20th January 2016 to 19th January 2016. The stratigraphy of EL 28616 is dominated by the Burrell Creek Formation of the Finniss River Group and the underlying Sediments of the South Alligator Group which have been folded along west north-west trending axes within the project area. There are also minor exposures of the Mount Davis Granite, The Allamber Springs Granite and McCarthy's Granite all straddling the borders of the tenement. Gold mineralisation occurs within greywacke, siltstone and carbonaceous phyllite of the Mt Bonnie Formation. It is also confined to meta-greywacke and slate of the Burrell Creek Formation, which are the most prospective lithologies in the Pine Creek Orogen. Base metal mineralisation is also being targeted, with potential skarn, VMS, or shear zone hosted deposit types plausible. The Evelyn Ag-Pb-Zn historical workings are a local example of such mineralisation. Exploration activities for the reporting period included geological and geophysical targeting and data compilation. PNX undertook a profile analysis of the EM and magnetic data in an attempt to identify potential base metal sulfide bodies, given the success at these techniques in identifying the Iron Blow and Mount Bonnie mineralisation. This work identified five priority 1 and ten priority 2 targets. PNX began compilation and analysis of the huge volume of data transferred by Newmarket in the previous term.