Annual Report for year ending 1 February 2017 ML 23839 Mount Porter

Abstract

ML 23839, which hosts a modest gold resource at Mount Porter, was granted to Arafura Resources on 2 February 2005 for a period of twenty-five years. In March 2013 Ark Mines Ltd vended into the tenement as part of the overall Arafura's Mount Porter-Frances Creek gold project, which currently comprises six licenses. Four of the licenses are shared with Territory Resources Limited, which they are entitled to the Fe resources. Ark Mines Ltd agreed to outright purchase of the the Mount Porter - Frances Creek gold project on 20 June 2016. The transaction was effected on 7 September 2016. The transaction includes a 2.5 percent royalty payable by Ark Mines Ltd to Arafura Resources, on gross gold sales of ore mined from the tenements. To date, Arks activities in the Mount Porter region have been directed at preparing for the commercial exploitation of the Mount Porter gold deposit, and the expansion of that deposit, including: Completion of a Mine Management Plan for Mt Porter and DME acceptance; Continuation of mining feasibility and planning work including: Several rounds of reserve optimisation; Several rounds of waste management optimisation; Several rounds of pit redesign; Several rounds of mine service provider price negotiations; Signing a revised toll treatment agreement at Union Reefs Pine Creek with Newmarket; Signing an access agreement for the private haul road to Union Reefs, with Territory Iron; Grade control design and optimisation; Drill and blast design and optimisation; and Archaeological survey of proposed disturbance areas for cultural heritage; Completion of 10 compliant water monitoring bores; 700m of resource development RC drilling targeting Mt Porter southern extension.