Combined Annual Report for EL 25399 Compass Creek, EL 25436 Mavis, EL 29068 New Waterdrum, Compass Creek Project

Abstract

During 2016, Ismins parent company (Kidston North Pty Ltd) continued to advance the merger agreement with a Melbourne based company (Alluvial Mining Limited [AML]). AML is presently preparing for a float on the Australian Stock Exchange in Q2 of 2017. As part of their agreement, and the need for due diligence on Ismins Pty Ltd, AML funded exploration on the Compass Creek project in 2016. This work consisted of check sampling and mapping of known mineralised areas, and the continued work on the Waterdrum area. The sampling and mapping at Mavis and the Mountain area confirmed previous assay results, and enhanced these as quality drill targets for a potential buried gold and/or tin resource. These targets are proposed for drilling later in 2017. The reconnaissance mapping and rock chip sampling at Waterdrum located two significant quartz-sulphide (gossan) veins and an area of phyllic hydrothermal alteration in nearby sediment outcrops. These exposures of mineralisation coincide with airborne magnetic and electro-magnetic (AEM) anomalies, as well as historic soil anomalies for gold and arsenic. All these anomalous features are located within the axis of a north plunging anticline, and are located about 700 m north of the granite contact. It is possible that the granite shallowly underlies the anomalous area, and that a mineralised system could be present at shallow depth. It is proposed to conduct an IP/resistivity survey over the anomalous area in 2017, so as to better define drill targets.