2015 Annual Mineral Exploration Report Borroloola West Project MLN 624 reporting period 1 January 2015 to 31 December 2015

Abstract

MLN 624 makes up part of the Borroloola West JV under an agreement between Sandfire Resources NL and Pacifico Minerals Ltd, which comprises 14 granted tenements, and 1 application, as at 20 February 2015. MLN 624 overlies the Coppermine Creek prospect identified for its outcropping malachite stained gossans situated along a splay off the Coppermine Creek Fault known as the Gordons Fault. Pacifico Minerals has continued an integrated exploration program for base metals along the Gordons Fault, following on from historical drilling conducted by Carrington Mines, BHP and Mount Isa Mines and more recently Sandfire Resources NL. Majority of the drilling has focused around the eastern extremity of the main gossan on MLN 624, with Sandfire Resources drilling IP anomalies on the surrounding tenement EL 26938 (Fig. 3). Field activities undertaken on MLN 624 during the reporting period from 1 January to 31 December 2015 included desktop research of historical drilling data and analyses to complete the existing database compiled by Sandfire Resources, geological field mapping and subsequently a single reverse circulation drill hole, CCR01 to a depth of 71.0m. CCR01 was part of a three hole RC and diamond drilling program designed to extend known high grade copper mineralisation along the Gordons Fault, and intersect stratabound copper mineralisation, indicated by previous drilling studies. The accompanying holes CCD02 and CCD03 reside on the surrounding EL 26938 and will not be covered in detail in this report, information regarding these holes are covered in Appendix A: Coppermine Creek Drilling Report 2015. Host rocks to the Gordons Fault mineralisation are mapped as the Amelia Dolomite and Mallapunyah Formation. The gossans outcrop poorly to the west along strike of the Gordons Fault, however, Carrington Mines RC hole GRC09 intersected 34m at 0.53% Cu (including 7m at 1.67%) and stopped in mineralisation suggesting that the Gordons Fault Mineralisation may be thickening westwards. CCR01 (556500mE, 8235607mN) was drilled on the western extremity of MLN 624 on the 24th - 28th June 2015, to a depth of 71.0m. Circulation was lost due to caving ground and HQ casing failed to go down hole to continue with diamond drilling and the hole was abandoned. However, CCR01 intersected oxidized copper mineralisation in a zone of ferruginous laterite in the hanging wall of the Gordons Fault from 29-71m at 0.3% Cu including 16m at 0.5% Cu from 43m. Mineralisation in the intensely brecciated and dolomitised hanging wall of the Gordons Fault is associated with disseminated and veinlet chalcopyrite to almost semi-massive in zones indicated by previous drilling studies and intersections in CCD02-03 (EL 26938) to the west of CCR01. Roper Group black shales lay on the footwall of the Gordons Fault. Fault breccia contained fragments of dolomitised rock with chalcopyrite indicating post mineralisation fault movement. Although good grades are associated with the Gordons Fault it does not have the size or tonnage to form a viable economic deposit, within the area drilled so far.