2016 Annual group report GR378 MLN 342, MLN 346, MLN 459, MLN 405, MLN 811, MLN 816, MLN 1033, MLN 1039, ML 30512 and ML 30589, Mount Bonnie, year ending 31 December 2016

Abstract

PNX Metals Ltd ('PNX') purchased the Mount Bonnie tenements from Newmarket Gold Inc in late 2014. This is the second of the Group Reports (GR378) pertaining to MLN's 342, 346, 405, 459, 811, 816, 1033, 1039 and ML's 30512 and 30589, collectively referred to as the 'Mount Bonnie leases'. PNX are exploring the Mount Bonnie leases as part of the Hayes Creek Project, which also includes the Iron Blow leases located approximately 2 km to the north. Mount Bonnie is a polymetallic Au, Zn, Ag, Pb and Cu deposit within the Pine Creek Orogen, discovered in the 1870?s and mined sporadically up to 1985. It produced approximately 25,000oz of gold and 810,000oz of silver from oxide ore totalling about 110,000t in the open pit, as well as minor historical underground production. During the 2016 reporting period, PNX completed a scoping study, 27 RC and 2 diamond holes for a total of 1984.7m, a Mineral Resource estimate, undertook further metallurgical testing, and commenced the Hayes Creek prefeasibility engineering study.