2016 Annual Group Report for EL's 9608, 10012, 10347, 23431, 23536, 23540, 23541, 24018, 24051, 24058, 24351, 24405, 24409, 25295, 25748 and ELR 97 Burnside Exploration Project for period ending 15 January 2017 Group Report GR185/16

Abstract

The Burnside exploration group is made up of 15 Exploration Licences (ELs). The tenements are located about 120 km south of Darwin, along the Stuart Highway. The licences were originally granted to various companies including Northern Gold, Dominion Gold Mines Pty Ltd and the Burnside Joint Venture (50:50 Buffalo Creek Mines Pty Ltd and Territory Goldfields NL). After several changes of ownership and mergers, Newmarket Gold NT Holdings Pty Ltd are the current titleholders, now part of Kirkland Lake Gold Ltd ('KL Gold'). KL Gold have two agreements for exploration in place over the Burnside Project. The first is with Rocklands Resources ('Rocklands') for uranium and the second is with PNX Metals Ltd ('PNX' - previously Phoenix Copper Ltd) for all other minerals. The stratigraphy of the Burnside Project area is dominated by the Wildman Siltstone of the Mt Partridge Group and units of the South Alligator Group and the overlying Finniss River Group. This volcanosedimentary sequence has been moderately to tightly folded along several northwest trending axes within the project area, the most prominent of which are the Howley, Brocks Creek/Zapopan and the Fountain Head Anticlines and the Margaret Syncline. The axial plane of these folds is characterized by intense bedding-parallel faulting and shearing along predominantly north-west trends. The project area is prospective for gold, base metals and uranium, proximal examples of which include Goodall (Au), Cosmo-Howley (Au), Brocks Creek (Au), Woolwonga (Au), Mount Bonnie (base metals), Iron Blow (base metals), Mt Ellison (base metals) and Thunderball (U). During 2016 PNX conducted a significant exploration campaign, which included a heritage and cultural survey (Santorini, Barossa and the Shady Camp/Langleys prospects), surface geochemistry (107 rock chips, 319 Au-in-soils analyses, 1964 pXRF measurements), prospect mapping (Shady Camp and Langleys Prospect, Halstead, Buffalo Yard, The Goodall Area, Deloraine, BLT 114, Fishers Lode, Ban Ban, Santorini and Mt Ellison), diamond drilling at the Barossa base metals prospect as part of the CORE co-funding programme (2 holes, 328.7m HQ diamond core drilling), RC drill programme at the Langleys/Shady Camp gold (8 holes, 602m RC drilling), geophysical interpretation and historical geochemical data compilation. KL Gold updated the Mineral resource for the Kazi area which is on an MLA but is reportable under EL 25748 expenditure and covered in this report.