Hatches Creek Project EL 22912 and EL 23463 Annual Technical Report 25th July 2015 to 24th July 2016 Combined Report GR262

Abstract

The Hatches Creek tungsten project consists of two tenements EL 22912 and EL 23463, located approximately 320km north east of Alice Springs. GWR Group Limited ('GWR') via its subsidiary NT Tungsten Pty Ltd was earning a 50% interest in the project from Davenport Resources Pty Ltd; however in May 2016 Davenport agreed to sell the project to GWR. On 18th August 2016 the NT Department of Mines and Energy transferred a 100% interest in the tenements to NT Tungsten Pty Ltd. The focus for the Hatches Creek project during the previous reporting period was to mine and process the historical mine dumps to generate cash flow. After a significant decline in the world tungsten price to almost record lows it was decided to delay the dumps project and refocus on the exploration potential. Work undertaken during the year ending 24th July 2016 consisted of flying a detailed UAV survey, estimation of dump and stockpile volumes, dump and rock chip sampling, and the collection of 10 bulk samples for testwork on size/ grade distribution and bulk density. Activities planned for the coming year include RC drilling and the completion of a scoping study. Ausurv Surveyors Pty Ltd were contracted to undertake a detailed unmanned aerial vehicle survey ('UAV') over 5 areas within the project area targeting most the historical mine workings. This work has delivered high quality photogrammetry, which has also been used to estimate the volumes of historical stockpiles and mullock dumps within the project area using Virtual Surveyor software. 10 Bulk samples of approximately 500kg in size were collected and submit to Nagrom Perth to determine head grade, bulk density and size fraction analysis. The UAV survey identified a number of historical mine dumps and stockpiles that were not included in the 2015 Resource estimate undertaken by Arunta Resources Limited and 138 dumps were sampled and assayed at Nagrom Laboratories in Perth. This sampling confirmed that widespread significant and in some cases high grade mineralisation was present. Virtual Surveyor software was used to estimate the volume of all significant historical stockpiles and mine dumps using the high quality data collected in the UAV survey. This data will enable the Resource to be re-estimated with a higher level of confidence. A 30 hole RC drilling program has been designed that targets the mineralization, focusing on the larger historical mines. An Exploration Mining Management plan (EMMP) has been submit to the NT Department of Mines and Energy