Group Annual Report for EL 28656, EL 29022, EL 26831, EL 26833, EL 26835, EL 26836, EL 30048, EL 30137, EL 30152, EL 30156 and EL 30158 North Batten Combined Reporting Area Reporting Period 30 September 2015 to 29 September 2016

Abstract

On 29 May 2013, MMG Exploration Pty Ltd (MMG) executed a Joint Venture Agreement (JV) with Sandfire Resources NL (Sandfire). A total of 11 exploration licences and 2 applications are held and are referred to as the North Batten Combined Reporting Area, in the McArthur region of the Northern Territory. The North Batten Project Area is situated within the highly prospective Batten Fault Zone of the McArthur Basin. The primary exploration target for MMG is zinc-lead deposits in black shales of the McArthur Group. Since commencement of the JV, MMG has conducted a systematic desktop review of past exploration and existing interpretations based on structure, stratigraphy and geochemistry. Initial field reconnaissance was conducted to assess access into areas for proposed drilling, and program logistics. From 2013 to 2014, database assessments and desktop studies were completed. A series of helicopter-reconnaissance programs aimed to survey the tenements ground access, track conditions and potential ground works for these targets were completed in preparation for a 2014 drilling program. In 2014 a total of 8 diamond drill holes were completed at the Leila Creek, Yalco East, Sawtooth, Rosie Creek and Mt Young prospects. A number of shale units were intersected but none were significantly mineralised. In 2014, a total of 1085 stream sediment samples were collected, aiming for a 5 km2 catchment size. In June 2015, a further 403 stream sediments samples were collected over the tenement package aiming to infill the 2014 survey to catchments of 3.5 km2 in area. A soil sampling programme was carried out in parallel to stream sediment sampling and totalled 91 samples. A program of mapping known mineral occurrences was completed in 2014, and a total of 26 rock chip samples were collected. Some of the mineral occurrences were confirmed while others could not be located. In addition, all areas of interest for 2015 drilling were mapped in June 2015 in order to produce geological cross-sections and better determine drill hole locations. Between August and November 2015 9 diamond drill holes (NBDD009-NBDD017) were completed in the Rosie Creek, Sawtooth and Yalco West areas. A number of holes intersected carbonaceous shales of the Barney Creek Formation and Caranbirini Member but none were significantly mineralised. Two water bores (NBWB001 and NBWB002) were also drilled in the Sawtooth prospect area in mid-July 2015 to provide water for proposed diamond drilling. NBDD009 - NBDD013 were reported in the 2014 - 2015 annual report. NBDD014 - NBDD017 are reported here.