Combined Annual Report for the Gecko Group ML's 23969, 31021, 31023 and ML's 21, 323 - 327, 506, 69, 70, 78, 85 - 90 1 May 2015 to 30 April 2016

Abstract

The titles of the Gecko Group were acquired by Santexco to search for Tennant Creek style iron oxide copper-gold deposits (IOCG). Santexco is a wholly owned subsidiary of Emmerson. This combined report records the exploration work completed on these titles during the period from 1 May 2015 to the 31 April 2016. During the reporting period were limited due to corporate reasons, following the success of Emmerson securing Evolution Mining (Evolution) as a Joint Venture Partner who has committed to spend $25M over the next 5 years. Following the formation of this JV, Emmerson commenced exploration activities centered on the reevaluation of the potential for gold deep under the historical Gecko Mine more specifically ML 23969. This drilling was targeted from a completed a seismic survey over the Historical Gecko Mine, more specifically the K44 ore body, conducted by the new JV, the survey was aimed at trying to resolve and deep targets previously not seen by other depth limited geophysical techniques and now past deep drilling. The seismic section was interpreted by Emmerson and our JV partners geoscientists and a target was generated. Emmerson drilled 1 deep diamond (DDH) hole, with an RC precollar under the historical Gecko mine (ML 23969) totalling 1,279m (of which 265m was an RC precollar and 1,014m was DDH). Results from the drilling were mixed with high grade copper intersected in the RC precollar, with best results as below; 7m at 5.98 percent Cu from 123m including 3m at 10.4 percent Cu; 3m at 4.75 percent Cu from 162m including 1m at 10.6 percent Cu; 1m at 2.37 percent Cu from 221m. The deeper results were disappointing but later re-evaluation and processing of the data revealed the potential near miss of a magnetic body at depth. The copper intersected in the top part of the hole potentially could be a western strike extension of Emmersons Goanna discovery located 800m to the east. A proposal for a drill program to confirm this extension will be prepared was tabled at the October 2015 JV meeting but was postponed to concentrate on gold targets. Other exploration activity conducted consisted of field visits to geologically assess a number of Kenex generated targets within the Gecko Group area. These targets exhibited geological prospective rocks and structures as expected being part of the Gecko - Goanna deposits all targets will be reassessed and re ranked in 2016 for future exploration. Further to this, the success of the application of the Archimedes technology which has the aim of defining the existence of ironstones at depth, whether magnetite or hematite and a more accurate representation of the position of such an ironstone in 3D space, may have large implications for targeting techniques in the entire Tennant Creek Mineral Field, but more specifically the Gecko Group.