Annual Technical Report ML29679 Glencoe 27 September 2015 to 26 September 2016

Abstract

Mineral licence (ML) 29679 (Glencoe ) is located in the central portion of the Burnside region in the Northern Territory, with it being approxiamately 120 kms south east from Darwin. The tenement was purchased from Australasia Gold (now Emerchants Limited) in September of 2012, through a sale agreement with Newmarket Gold NT Holdings Pty Ltd (NGNT). The tenement falls within the Archaean to Paleoproterozoic Pine Creek Orogen (PCO), one of the major mineral provinces of Australia. The PCO is a deformed and metamorphosed sedimentary basin up to 14 km maximum thickness covering an area of approximately 66,000 km2 and extending from the Katherine area in the south to Darwin in the north. It hosts significant resources of gold, uranium and platinum group elements ('PGEs'), as well as substantial base metals, silver, iron and tin-tantalum mineralization. Gold production at the Glencoe mine began in 1989 with Magnum Gold N.L. through the extraction of ore from the four pits (West open pit, North Central, Mid Central and South Central) pictured in Figure 2. From 1989 to 1990, a total of 49,000 tonnes of ore @ 2.44 g/t Au was mined, which was milled at the Mount Bonnie plant for a 87% recovery. In late 2012 Newmarket Gold transported roughly 32,000 of low grade stockpiles from the Glencoe deposit to the Union Reefs Mill. The average grade of the material was around 1g/t and recovery was around the 90% mark. Around 900 ounces of gold were produced from these stockpiles. Glencoe has a reported Mineral Resource and Mineral Reserve as detailed in the 2013, NI43-101 report titled 'Report on the Mineral Resources and Mineral Reserves of the Burnside Gold and Base Metal Project in the Northern Territory Australia for Crocodile Gold Corp.' The final results were an indicated resource of 187,000 tonnes @ 2.12g/t Au for 13,600 ounces and an inferred resource of 33,000 tonnes @ 2.47g/t Au for 2,600 ounces. The mineral reserve for the Glencoe deposit is recorded as 60,000 tonnes @ 2.48g/t Au for 4,720 ounces at a cut-off of 0.95g/t Au. Exploration activity on ML 29679 for the previous 12 months included a review by Ark geologists. Including three site visits. Ark undertook a viewing of the core at Brocks Creek to establish the potential for its uses in the upcoming waste characterision work to be undertaken by NRC (Arks environmental consultants)