Groundrush Project Annual Report to the Department of Mines and Energy for the period 14 September 2015 to 13 September 2016 ML 22934

Abstract

This report describes exploration activities primarily for gold undertaken by Northern Star (Tanami) Pty Ltd over ML 29934 as part of the Groundrush Project between the 14 September 2015 and 13 September 2016. The centre of the Project area is located approximately 600 km northwest of Alice Springs along the Tanami Road and lies 40 km northeast of the Tanami Mill which is currently under care and maintenance. The ground rush tenement forms part of a larger Joint Venture agreement between Tanami Gold (NT) PTY Ltd and newly incumbent joint venture partner and manager Northern Star (Tanami) Pty Ltd, a wholly owned subsidiary of Northern Star Resources Limited. Work completed over ML 22934 by NST during the reporting period comprised: the compilation, validation and assessment of all previous data held by Tanami Gold (NT) Pty Ltd and geological reconnaissance; the re-processing of previous airborne and ground geophysical surveys over Groundrush; a regional soil geochemical analysis with targeting; the drilling of 113 resource definition diamond drill holes for 37,063m at Groundrush; the production of an updated resource estimate at Groundrush with external audit; and feasibility studies into re-opening of the Groundrush goldmine. NST's resource definition drilling has successfully supported an upgrade to the resource at the Groundrush deposit which is now JORC 2012 compliant. The total indicated and inferred resource is estimated to be 11.9Mt @ 3.2g/t Au for 12Moz. Additional expenditure is warranted at the Groundrush deposit to extend the near surface resources along strike as well as infill drilling to improve the confidence of potential mining areas. Mining feasibility studies have commenced and will continue to assess the current economic viability of the Project and to also highlight areas for more drilling to test continuity. In addition to the above recommendations, expenditure is also warranted in deposits surrounding Groundrush in order to reduce risk.