2016 Annual mineral exploration report Borroloola West Project MLN 624 reporting period 1 January 2016 to 31 December 2016

Abstract

MLN 624 makes up part of the Borroloola West JV under an agreement between Sandfire Resources NL and Pacifico Minerals Ltd, which comprises 12 granted tenements, as of 20 February 2016. MLN 624 overlies the Coppermine Creek prospect identified for its outcropping malachite stained gossans situated along a splay off the Coppermine Creek Fault known as the Gordons Fault. Pacifico Minerals has continued an integrated exploration program for base metals along the Gordons Fault, following on from historical drilling conducted by Carrington Mines, BHP and Mount Isa Mines and more recently Sandfire Resources NL. The majority of the historical drilling has focused around the main gossan on MLN 624. Sandfire Resources also drilled IP anomalies on the surrounding tenement EL 26938. Activities undertaken on MLN 624 during the reporting period from 1 January to 31 December 2016 included desktop research of historical drilling data and analyses, geological field mapping and subsequently a single reverse circulation drill hole, CCR08 to a depth of 120.0m. CCR08 was designed to confirm copper mineralisation along the Gordons Fault, and intersect stratabound copper mineralisation, indicated by previous drilling studies. Most of the primary sulphide potential lies outside the ML, however there is potential for a small resource of oxide copper partially within MLN 624. Mineralisation in the intensely brecciated and dolomitised hanging wall of the Gordons Fault is associated with disseminated and veinlet chalcopyrite, almost semi-massive in parts, intersected by previous drilling by Pacifico in drill holes CCD02, CCD03 (EL 26938) and CCR08. Roper Group black shales are intersected on the footwall of the Gordons Fault.