Annual Report EL 29330 Mount Bundy Project Gold Exploration for period ending 22 October 2016

Abstract

EL 29330 is a tenement of the Mt Bundy exploration group located about 81 km SE of Darwin and approximately 40km SW of the historic Toms Gully Mine owned by Primary Gold Limited (PGO) and 9km east of the small township of Adelaide River. The licence was granted to Primary Minerals Pty Ltd in October 2012 for a period of 6 years. Primary Minerals Pty Ltd is a wholly owned subsidiary of PGO. The tenement is underlain in the north by extensive areas of Cainozoic alluvium, colluvium and soil with minor outcropping feldspathic lithic greywackes of the Burrell Creek Formation of the Finniss River Group becoming more frequent in the south of the tenement and lies predominantly west of the Mt Shoobridge Fault. The thickness of the Burrell Creek Formation is difficult to establish but is thought to be >1000m and is conformably underlain to the NE of the tenement by the formations of the South Alligator Group. This Burrell Creek Formation hosts numerous small to moderately sized gold bearing quartz vein style prospects, the largest of which is the abandoned Goodalls Mine some 11km east of the tenement. Work completed during the reporting period by PGO was limited to a desktop review of the tenements prospectivity by the new management team and the preparation of an application for an Authority Certificate. The desktop assessment included the review of internal company data and available public data. The lodging of an Authority Certificate to survey for aboriginal sacred sites is to provide future access to proposed exploration sites within EL 29330. The tenement forms part of the greater PGO Mount Bundy Project which includes the historic Toms Gully, Rustlers Roost and Quest 29 mines/deposits. PGO has undertaken a successful feasibility study on the Toms Gully Mine and has commence a feasibility covering the larger Toms Gully, Rustlers Roost and Quest 29 mining area. In the future it is hoped to use the infrastructure development at the existing mining area to realise the potential of regional prospects such as may be found on Exploration Licence 29330. The proposed work program for the fourth year of tenure is to include completion of the sacred site survey (i.e. Authority Certificate granted), ground reconnaissance with follow up geochemical programs and geophysical surveys as appropriate to generate high priority drill targets. Drill-testing of the identified targets will also be considered and decision will be made based on the results of the ground reconnaissance and prospecting work.