Annual Report for for MLNs 808, 821 and 869 period ending 31 December 2016

Abstract

Activities proposed for 2016 were not achieved due to the focus being diverted by proposals from two separate interested parties. Knappes Cassidy of Western Australia showed significant interest in a heap leach proposal. After providing all historical data, Knappes Cassidy failed to make any further comment or reason for loss of interest. Mining Processing Solutions Pty Ltd of Perth together with the Australian Mineral Research Centre have developed a continuous vat leach system producing benign tails from oxidised ore which would suit the McKinlay Project. Their economical cut off for 4g/t ore was 33,000 per year with a projected profit with two years of operation. Our estimated 80,000 tonne reserve was viewed marginal with a capex of $2.5 to set up. This project has not gone any further at present. The discussions and actions with the mentioned entities over the dry season did not allow time to carry out the proposed activities. Ban Ban Station was sold in December 2016 and endeavours are being made to contact the new owners with the aim to meet and discuss future proposed activities.