Combined Annual Report for the Tanami Exploration Project for the period 1 January 2016 to 31 December 2016

Abstract

Exploration activities completed on Tanami Exploration Project tenements during 2016 were regolith mapping, geochemical sampling using Newmont's proprietary Deep Sensing Geochemistry (DSG) sampling technique, chemostratigraphy, petrophysical rock properties, drilling, gravity survey, and structural mapping. Regolith mapping was used to interpret DSG results and revealed the area immediately north of DBS was associated with a large gold anomaly represented transported cover rather than in-situ material. These DSG samples were collected at the end of 2015, which is why results have been received. The results of the 2016 DSG program are yet to be received at the end of the current reporting period but are expected in early 2017. The Chemostratigraphy Project continued in 2016 by sampling historic drill core from DBS, Hordern Hills, Magellan, Oberon and Pegasus. Magnetic susceptibility data was collected from drill core across the DBS deposit, in an attempt to characterise the petrophysical rock properties of each stratigraphic unit. The Upper Auron Beds and Auron Beds can be distinguished from the other stratigraphy (at least at DBS) by the magnetite and magnetite-pyrrhotite content of these stratigraphic units respectively. The 2016 drilling program was conducted from October to December 2016 and was focused up to 2 km west-southwest of DBS, along strike of the mineralised trend. Historically mapped fold closures (mapped by North Flinders Mines) and geophysical imagery interpreted a fold closure at Schist Hills and the Gnamma Fold. Drilling targeted the intersection of the projected mineralised trend with the hinge of the fold closures, with one hole drilled for each fold closure. The first hole (DBD0527) drilled through the interpreted fold closure but intersected the favourable host stratigraphy (Callie Laminated Beds at 1,349.8m) in the footwall of the mineralised trend. The end of hole depth was 1,560.9m. The second hole had to be temporarily abandoned due to inclement weather in December 2016, abandoned before reaching the hangingwall of the mineralised trend. The hole was drilling through Coora Dolerite and will be re-entered in 2017 (current depth 765m). A detailed gravity survey was completed by Haines Surveys (400m x 100m spacing and 200m x 100m infill) in July 2016 to improve on the existing 1000m x 500m spaced gravity survey. International Geoscience Pty Ltd (IGS) processed and terrain corrected the gravity data. IGS used the new detailed gravity imagery as well as previously collected magnetic imagery to provide an updated geological map of the DBS area of interest (AOI). The structural architecture of the DBS AOI was captured in the map, with regional northwest-southeast striking faults interpreted to be long lived, deep penetrating structures. Cross structures activated and reactivated through movement along these regional structures are interpreted to be important in developing a high strain zone that hosts the mineralisation at DBS (mineralised veincorridor).