Combined Annual Technical and Expenditure Report ending 5th May 2016 and estimated work cost for next 12 months

Abstract

Exploration lease 26930 held by Terry Hearl was applied for on the 21/08/2008 and was granted on the 5/05/2009 to search for base metals and all associated minerals. Access to this area is limited to five or six months of the year because of the very high rainfall during the wet season. Station roads provide the only access to the area but these are restricted to a very small portion of the tenement with some only being graded as required and many not being graded from year to year. No road access exists to the other parts of the license area. Approximately five weeks were spent on exploration during the 2015-2016 reporting period. Ground access to a percentage of the remaining 15 blocks was obtained to resume our sampling program. An area of the eastern side of the lease was grid walked with numerous rock-chip and sediment samples taken which are being examined by the geological team. Upon a favourable outcome of testing, we are considering the merit of initiating a drilling program for which we have acquired a small drilling rig which we are in the process of tooling up to cope with the harsh conditions. Literature review of available data including the 1:250 000 map sheet series of 1:100 000 interpreted geological maps. Review of gravity, magnetic and radiometric data has been studied by our geological technical support team. Reconnaissance exploration included assessment of ground access conditions, ground truthing with respect to previous exploration, geological mapping and interpretation of existing geological maps, and identification of areas for future sampling.