Annual Group Report Burnside Group - Brocks Creek UG and Rising Tide, Davies Prospect, Fountain Head, Cosmo Howley, Good Shepherd, Grove Hill, Howley Ridge, Woolwonga and Yam Creek Year ending 15 February 2016 Group Report GR187/11

Abstract

The Burnside group of tenements are located approximately 150 km SSE of Darwin along the Stuart Highway. The Burnside mining group, until recently, covered Bridge Creek, Bridge Creek North, Brocks Creek UG and Rising Tide, Davies Prospect, Fountain Head, Cosmo/Howley Group, Howley Ridge, Iron Blow, Mt Bonnie, Woolwonga and Yam Creek. The stratigraphy of the Burnside project area is dominated by the Wildman Siltstone of the Mt Partridge Group and units of the South Alligator Group and the overlying Finniss River Group. This volcano-sedimentary sequence has been moderately to tightly folded along several northwest trending axes within the project area, the most prominent of which are the Howley, Brocks Creek/Zapopan and the Fountain Head Anticlines and the Margaret Syncline. The axial plane of these folds is characterized by intense bedding-parallel faulting and shearing along predominantly northwest trends. The Wildman Siltstone consists of medium to thinly bedded, to laminated fine grained pyritic carbonaceous sediments with minor sandstone and tuff beds, with an overall thickness of approximately 1,000m.The Koolpin Formation consists of sulphidic and carbonaceous argillite, ferruginous chert, ironstone, silicified dolomites and phyllitic mudstones. The contact between the Wildman Siltstone and the overlying Koolpin Formation is partially conformable and partially an angular unconformity. The Koolpin Formation varies in thickness from less than 300 m to in excess of 1,000 m, but its overall thickness is difficult to determine due to the presence of several intrusive sills of Zamu Dolerite, which vary from several meters to a few hundred meters in thickness. The Burrell Creek Formation comprises a 1,500 m thick sequence of turbiditic sediments including greywackes, siltstones and mudstones. The Mount Bonnie Formation is a transitional unit between the Koolpin and Burrell Creek Formations, comprising greywacke, carbonaceous siltstone, chert, tuff and ironstone and with a variable thickness between 150 m and 400 m thick. The Gerowie Tuff (GTF) is up to 400 m thick and consists of tuff, tuffaceous chert and tuffaceous siltstone, with subordinate amounts of laminated cherts and carbonaceous siltstones. Numerous semi-conformable sills of pre-orogenic Zamu Dolerite intrude the Koolpin Formation and the Gerowie Tuff. The post mineralization Burnside Granite and Mount Goyder Syenite intrude the sedimentary sequence. Much of the exploration drilling and research conducted by Newmarket Gold in 2015 was a follow up of the initiatives suggested by Cosmo geological staff and John Miller. Two return visits to the mine were made by John Miller to review the results of testing the targets he proposed in 2014. Cosmo exploration growth drill programs were conducted at; Cosmo Deeps Eastern Lodes; Western Lodes; 300 Lode South; Lantern (Inner Metasediments to the Zamu Dolerite); Sliver northern extensions to 2200N (including surface diamond drilling); Hinge below the F1 Fault; and Cosmo South extensions to the Eastern Lodes adjacent to a postulated cross fault. Complimentary to the above exploration programs at Cosmo Mine was the mining of a drive at the 640RL level with purpose to provide optimal drill platforms to drill targets such as the Sliver, Hinge and Western Lodes to the deeper northern end of the underground mine. Other exploration studies described in this section are; Lantern diamond core Petrographic Study by Ashley May 2015; Western Lodes Review by John Miller June 2015; Lantern ('Green Rock') Review by John Miller June 2015; Western Lodes Structural Study by John Beeson November 2015; and Lantern Handheld XRF Study by Wessley Edgar December 2015. The Cosmo Mineral Resources and Reserve N143-101 Technical Report was updated in February 2016. An update of the Mineral Reserves for the Cosmo project, completed on the additional drilling and mining information that has been captured on the mine area for the reporting period up to 31st of December 2015, was included in the report. The Reserves Statement reports a depletion of mineral resource and mineral reserves for the Cosmo Project for both the Hangingwall and Footwall Lodes. The depletion was due to mining. For the greater Burnside Group of tenements, there were no known events or situations during the reporting period, which would materially affect the mineral resource as reported in the previous reporting period. These include metallurgical, social, permitting, political, legal or environmental impacts. During 2015, all mineral resource estimations were reviewed and are deemed suitable for reporting. The only notable changes to the Newmarket Gold Mineral Resource statement has been the removal of the Glencoe and Bridge Creek deposits? mineral resources, as these deposits have been divested to third parties.