2015 Annual Group Report for EL's 9608, 10012, 10347, 23431, 23536, 23540, 23541, 24018, 24051, 24058, 24351, 24405, 25295, 25748 and ELR 97 Burnside Exploration Project for the period ending 15 January 2016 GR185/15

Abstract

The Burnside exploration group is made up of 15 Exploration Licences (EL) and 1 Exploration Licence in Retention (ELR). The tenements are located about 120 km south of Darwin, along the Stuart Highway. The licences were originally granted to various companies including Northern Gold, Dominion Gold Mines Pty Ltd and the Burnside Joint Venture (50:50 Buffalo Creek Mines Pty Ltd and Territory Goldfields NL). GBS Gold Australia acquired the tenements in 2007 before going into voluntary administration in 2008. On 6 November 2009, Crocodile Gold Australia acquired the Burnside exploration licences after purchasing all assets held by GBS Gold Australia (liquidated). In 2011 The Department of Mines and Energy granted a group reporting request on these tenements. This is the fourth group report since they were approved. Crocodile Gold, as titleholder merged into a new entity, Newmarket Gold Inc ('Newmarket') during 2015, and have two agreements for exploration in place over the Burnside Project. The first is with Rocklands Resources ('Rocklands') for uranium and the second is with PNX Metals Ltd ('PNX' - previously Phoenix Copper Ltd) for all other minerals. 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 north-west trends. The project area is prospective for gold, base metals and uranium, proximal examples of which include Goodall (Au), Cosmo-Howley (Au), Brocks Creek (Au), Woolwonga (Au), Mount Bonnie (base metals), Iron Blow (base metals), Mt Ellison (base metals) and Thunderball (U). During the reporting period, another significant exploration campaign was undertaken, concentrated mostly on the eastern side of the project area. This included surface geochemistry (152 rock chips, 868 Au-in-soils analyses, 4147 pXRF measurements), prospect mapping (Thunderball North, Maze, Margaret Syncline, Mt Ellison), fixed loop EM (approximately 4 line-km), drilling at the Joplin base metals prospect (113.74m RC and 120.76m diamond) and geophysical interpretation.