Year 2 Annual Report Exploration Licence 30280 McKinlay South Project for the reporting period 15 October to 14 October 2016

Abstract

EL 30280 is located approximately 100 kms southeast of Darwin. It was granted 15 October 2014 and is 100% owned by Ross Anictomatis. The tenement has outcropping rocks of the Finniss River Group (Burrell Creek Formation) in the middle and southwestern parts of the tenement and the South Alligator Group in the north eastern corner. The area has undergone polyphase deformation, and folding is tight to isoclinal with the fold axes trending north to north-northwest and plunging both to the northwest and south west. During the year three phases of reconnaissance and rock chip sampling was completed over the tenement. Also an exploration review of available historic data for the tenement was continued from year 1. A total of 35 rock chip samples were taken with assay results returning significant gold values up to 2.3g/t Au and silver values up to 56.5g/t Ag. The 56.5g/t Ag sample is from a newly discovered mineralised out crop along the axis of the NE anticline where prospective rocks of the Alligator Group are exposed. EL 30280 has excellent shallow and deep gold exploration potential. Continued surface reconnaissance is recommended especially in the NE corner of the tenement where a new mineralised outcrop has been discovered. Historic data compilation and the tenement wide exploration review is ongoing and will include an assessment of the available EM data to identify prospective stratigraphy at depth, within anticlinal fold hinges and hopefully below current known surface gold anomalism, for drill targeting.