Combined Annual Report for the Southern Project Area GR054, 16 February 2015 to 15 February 2016

Abstract

During the reporting period exploration activities were conducted under the Tennant Creek Joint Venture between Emmerson and Evolution, who has committed to spend $25M over the next 5 years. Exploration activities were very limited due to focus elsewhere in the Tennant Creek Field which centred around the Eldorado Area and Billy Boy areas. Emmerson continued its evaluation of the Chariot deposit and its remnant in-situ resources. All the work in and around Chariot was conducted on the granted Mineral Leases therefore won't be reported in detail here, but will be discussed in general due to its more regional applications. Emmerson drilled 2 RC holes (CHRC298 - 299) totalling 430m (of which 1, CHRC299 was used as a pre-collar for a diamond drill hole) and 1 DDH hole (CHDD287) totalling 83.7m (with a total depth of 363.7m). No significant intercepts were reported from this exploration although some anomalism was discovered and will be assessed for its implication for prospectivity and further economic mineralisation potential at Chariot. Emmerson continued its work from the Kenex Pty Ltd (Kenex) predictive modelling for the Tennant Creek Mineral Field and included all titles in the SPA. This product is a statistical predictive tool for predicting the possible prospective sites for Tennant Creek style mineralisation. The model produced many target areas which contain all or some of the essential criteria for possible economic mineralisation in the Tennant Creek Mineral Field. Emmerson has assessed the generated targets and ranked them in order of potential prospectivity. The highly ranked targets were selected for field visits and desktop data compilation and validation. Some of these generated targets were part of preliminary field checks during the last reporting period and limited work was conducted during this reporting period, any activities are recorded below where appropriate. Emmerson is currently trialling the application of a new technology 'Archimedes' which is the application of an proprietary algorithm over a large number of iterations (instead of the current small number run by Emmerson's contract geophysicists), this is done by the Archimedes group. The aim is to define the existence of ironstones at depth, wether magnetite or hematite and a more accurate representation of the position of such an ironstone in 3D space. Emmerson is trialling this at two separate areas, one in the Eastern Project Area (The Susan Block) and one in the Northern Project Area (Gecko Block). The success of this technology may have large implications for targeting techniques in the entire Tennant Creek Mineral Field, but more specifically the SPA.