EL 29550 Annual Report for year 4 Batchelor Project period 1 August 2015 to 31 July 2016

Abstract

This is the fourth Annual Report for the EL 29550. The tenement is a result of amalgamation of several exploration licences and it constitutes the Batchelor Project operated by Korab Resources Ltd. EL 29550 was granted on 1 August 2012 and was an amalgamation of previous ELs 24818, 24855, 25133, 25135, 25136, 27683, 27875, 28348 and 28867. In Year 4, work consisted of: Prospecting, rock chip sampling (32 samples), mapping of Mount Deane Volcanic and Acacia Gap Quartzite units, assessing ground conditions for the drilling program to test the base metals anomalies, checking locations for ground electromagnetic survey, checking locations for gravity survey, and checking locations for IP survey. Geochemical analysis of rockchip samples collected during 2015 and 2016 field seasons was conducted during the reporting period (the test results have not yet been received and will be reported in 2017 report). The scoping study for the direct shipping potential of the Winchester magnesite deposit was completed, and the mineral lease over the Winchester deposit has been granted during the reporting period. Consequently any work done on the Winchester magnesite deposit which was completed following the grant of the mineral lease ML 30587 on 21 October 2015 will be reported in annual reports for the mineral lease ML 30587. The company also continued with compilation and digitisation of the geochemical, geophysical and geological data from open and close file reports, the government data bases and various private vendors. The company also continued review of all available geochemical rock chip, drill chip and drill core data which is available on file focusing on potential for Sn, Zn, Pb and platinum group metals. We also undertook review of historical petrographic studies conducted both by Korab group and reported in earlier annual reports as well as petrographic studies commissioned by previous holders of the ground around Batchelor. We also conducted spatial and statistical analysis of geochemical data against interpreted structural data. We also undertook a systematic review of the historical data and data obtained from our own exploration work regarding gold potential of the licence, as well as the potential of the licence to host zinc and lead mineralisation.