Combined Annual Report for the Northern Project Area GR057/12 16 August 2015 to 15 August 2016

Abstract

Exploration Licences (EL's) in the Northern Project Area (NPA) were acquired by Giants Reef Exploration Pty Ltd (Giants Reef) to search for Tennant Creek style iron oxide copper-gold deposits. Giants Reef is a wholly owned subsidiary of Emmerson Resources Ltd (Emmerson). This combined report records the exploration work completed on these EL's during the NPA Combined Reporting period from 16 August 2015 to the 15 August 2016. During the reporting period exploration activities were conducted under the Tennant Creek Joint Venture between Emmerson and Evolution, who has committed to spend $25M over the next 5 years. Exploration activities were limited due to focus elsewhere in the Tennant Creek Field which centred around the Mauretania and Edna Beryl areas. Emmerson did drill 1 RC hole totalling 264m at the Rhodes project, but results were very disappointing with no ironstone intersected and therefore the samples were not assayed. The project has been downgraded and no further work has been planned. Emmerson continued its work from the Kenex Pty Ltd (Kenex) predictive modelling for the Tennant Creek Mineral Field and included all titles in the NPA. This product is a statistical predictive tool for predicting the possible prospective sites for Tennant Creek style mineralisation. The model produced many target areas which contain all or some of the essential criteria for possible economic mineralisation in the Tennant Creek Mineral Field. Emmerson has assessed the generated targets and ranked them in order of potential prospectivity. The highly ranked targets were selected for field visits and desktop data compilation and validation. Some of these generated targets were part of preliminary field checks during the last reporting period and limited work was conducted during this reporting period, any activities are recorded below where appropriate. Emmerson is currently trialling the application of a new technology 'Archimedes' which is the application of an proprietary algorithm that reprocesses geophysical data, this is done by the Archimedes group. The aim is to define the existence of ironstones at depth, wether magnetite or hematite and a more accurate representation of the position of such an ironstone in 3D space. Emmerson is trialling this at two separate areas, one in the Eastern Project Area (The Susan Block) and one in the Northern Project Area (Gecko Block). The success of this technology may have large implications for targeting techniques in the entire Tennant Creek Mineral Field, but more specifically the NPA. For the areas associated with the Gecko Block, the results of this reprocessing has yet to be interpreted and analysed and will be reported in the next annual report.