Combined Annual Report for the Argo Group GR392, ML 30623, ML 30712, ML 30713 and MLC 204 - 209, MLC 52 and MLC 524, 28 February 2016 to 27 February 2017

Abstract

The titles of the Argo Group were acquired by Santexco Pty Ltd (Santexco) and Giants Reef Exploration Pty Ltd (Giants Reef) to search for Tennant Creek style iron oxide copper-gold deposits (IOCG). Santexco and Giants Reef are wholly owned subsidiaries of Emmerson Resources Ltd (Emmerson). This combined report records the exploration work completed on these titles during the period from 28 February 2016 to the 27 February 2017. Inground exploration activity was confined to MLC 524 at an exploration target and historical prospect called, 'the Susan', exploration consisted of 11 RC holes (SSRC011 - 021) totalling 1,287m and 1 DDH hole (SSDD013) totalling 549.2 (222m pre-collar and 327.2m NQ). Unfortunately results from the drilling wasn't encouraging and an assessment of future exploration will be conducted during 2017. Exploration activity at the remaining titles of the Argo Group was limited due to exploration focus elsewhere, future work will be around the continuing assessment, both desktop and field visits to geologically assess a number of Kenex generated targets within the Argo Group area, refer to figure 6. These targets exhibited geological prospective rocks and structures but their overall ranking wasn't high enough for exploration to commence immediately. Following the recent exploration success at Mauretania in EL 28761 and Edna Beryl in MLC 705 these targets will be reassessed and re ranked in 2017 for future exploration.