Annual Group Report GR354 EL 29330, EL 29717, EL 30128, EL 30255, EL 30809 and EL 30824 Mount Bundy Project for period 1 December 2016 to 30 November 2017

Abstract

The Mt Bundy group of exploration tenements is located about 90 km SE of Darwin, along the Arnhem Highway. Most of the licences were originally granted to Renison Consolidated Mines NL, in 2003 and the project was then known as the Au Quest Project. GBS Gold Australia acquired the tenements in 2007 until going into voluntary administration in 2008. On 6 November 2009, Crocodile Gold Australia Operations (CGAO) acquired the Mt Bundy exploration licences from GBS Gold Australia (liquidated). During 2012 CGAO entered into a sales arrangement with Primary Gold Ltd (PGO) for the Mt Bundy Project which was finalised in February 2013. PGO then assumed responsibility for exploration of the project. The Mt Bundy Project area encompasses a suite of meta-sedimentary rocks of the Mt Bonnie Formation and the Burrell Creek Formation. These comprise brown to grey-green, thickly bedded to massive, fine to coarse feldspathic meta-greywacke with graded bedding in places and minor lenses of volcanilithic pebble conglomerate; brown to grey, laminated phyllite, slate and mudstone and minor quartz-mica schist. In May 2014 the Department of Mines and Energy approved an application to amalgamate the Mt Bundy tenements. This reduced the number of contiguous titles in the project from 24 to just 2; EL 30371 and EL 30124. The move from the Australia Geodetic Datum to the Geodetic Datum of Australia in 2000 resulted in a number of small vacant ground slivers within the Mt Bundy Project. PGO applied for these small parcels in 2014 and they were granted in November 2014. These small slivers were incorporated into EL 30371 and EL 30124 and the amalgamated tenements were reissued in 2015 as EL 30809 and EL 30824. In April 2017, EL 29330 and EL 30255 were incorporated into the reporting group. Throughout the reporting period PGO has continued regional reconnaissance and data evaluation of the extensive historic data set. This has led to approximately 2 weeks of reconnaissance field trips to validate the tenor, geography and geology of historic prospects and the new exploration targets determined from the past geochemical surveys. This culminated in the collection of 9 rock chip samples. At the same time PGO has commenced a staged exploration approach across the project with the first stage examining the zones of known gold mineralization with subsequent stages concentrating on prospective areas that are less known and/or explored. This staged approach resulted in 34 reverse circulation drill holes being drilled on EL 30809 and EL 30824 for a total of 4917m and 4917 samples. Also during the period the company's technical and financial resources are still being utilized for the collection of data and information required to address the issues identified by the government and public stakeholders during the assessment of the Toms Gully Mine Environmental Impact Statement (EIS). To date a flora and fauna survey across the Toms Gully, Rustlers Roost and Quest 29 Areas has been completed. The survey also covered parts of EL 30809 and EL 30824 to cover future drilling With the changes to senior management and the board completed, a staged exploration approach has been adopted starting with exploration at the known zones of mineralization and radiating outwards to less understood areas. As such exploration activity during the current reporting period has focused on areas of known mineralisation and surrounds at Rustlers Roost and Quest 29.