ELR 116 Mount Porter Northern Territory Annual Report for period ending 11 September 2016

Abstract

The Mount Porter gold resource is a key asset and major focus of attention for future Gold production for Ark Mines. This Project currently comprises a number of exploration / mining titles, covering an area of approximately 67 km2. Three of these licences, including ELR 116, were purchased outright by Ark from Arafura in August 2016. The mineral rights on the remaining licences are shared with Territory Resources Limited, or with its wholly owned subsidiary, Frances Creek Pty Ltd. To date, Arks activities in the Mount Porter region have been directed at preparing for the commercial exploitation of the Mount Porter gold resource and to look at further extensions along the Mt Porter Anticline. Ark has been focusing on the Mt Porter resource. Ark has undertaken revised metallurgical test work, optimization work on Mt Porter. This work has led Ark to decide on Mining the Mt Porter Gold Pit. Ark has negotiated an agreement to treat the ore at the local Gold plant at Pine Creek owned and Operated by Newmarket Gold (formerly Crocodile Gold) Ark has commenced completed a Mining Management Plan and this plan has been accepted by the NT DME for Mt Porter and anticipates commencement of Mining in 2017. Furthermore, during 2016 Ark recognised two new potential gold mining sources within 400m north and south of the Mt Porter gold mine. From desktop and field studies, Ark has recognised two sites within ML 23839, which have strong gold drill intercepts and sit along strike from Mt. Porter on the Mt. Porter Anticline. The zones have been named Mt. Porter North and Mt. Porter South. AHK recently undertook an historical review of previous work undertaken by RGC Limited and Homestake Gold Australia on ML 23839 and followed this up with two site visits to review drill collars and outcropping. The similarities between the two new zones and the existing Mt. Porter resource suggest there may be potential for developing a similar resource for the north and the south. Geological mapping has shown the Mt. Porter anticline to be a moderately tight anticline. The axis strikes N - NNW and the plunge is to the north. The anticline is disrupted by numerous N-NW striking faults with displacements of 10's of metres. Ark has also recognized there is potentially for extensions of the anticline to run into ELR 116. It is anticipated that Ark will now take a closer look at the extension with further soil sampling, some geophysics including Ultramag and potentially some drilling.