Annual Technical Report MLN 872, MLN 873 and MLN 874 John's Hill GR330 for period ending 31 December 2016

Abstract

The John's Hill group of tenements consist of three leases: Mineral Lease Northern (MLN) 872, 873 and 874, which were acquired by Newmarket Gold Inc. in May 2012 from Adept Solutions. The leases are situated approximately 29 km east northeast of the Adelaide River Township and are in close proximity to several historic gold mines, such as the Goodall and Star of the North mines. The tenements are situated within the Pine Creek Orogen, a thin succession of a tightly folded sequence which is associated with Proterozoic rocks and spread over rifted granitic Arachaean basement. Gold mineralisation consists of quartz vein and stockwork gold, which is found within the upper South Alligator and Finnis River Groups within the Pine Creek Orogen. Hosts rocks comprising of siltstones and greywacke tuff from the Burrell Creek formation are also found within the area. A review was undertaken on the project area by Newmarket Gold Inc. which found that the John's Hill leases did not comply with either the strategic focus of the company or the company's core asset criteria. The area is now viewed as a lower ranked target with limited plans for the future. In October of 2015, Newmarket Gold entered into a purchase agreement with Monax Mining Limited for the sale of the John's Hill leases. However, during 2016 the purchase agreement was withdrawn by Monax Mining Ltd. The project area remains on offer for sale by Newmarket Gold Inc. During the reporting period, Monax undertook one reconnaissance surface sampling trip to the leases. A total of 4 rock chip samples were collected. The best assay result was 1.21 g/t gold. Based on these results, no further work was undertaken on these Leases.