EL 22301 Annual Technical Report for the period 14 April 2016 to 13 April 2017

Abstract

Work done included a site visit and regional study aimed at providing a better understanding of the EL's geological setting. The aim of the exploration was to ascertain the likelihood of the discovery of additional mineral deposits within the EL 22301 that might be treated at the Mount Wells battery. The northern area of EL 22301 contains the McKinlay goldmine, a recorded mineral deposit of length about 200m and width 1m. (The McKinlay goldmine is held under tenure by others). Grades in the quartz-vein deposit are known to be in the vicinity of 2g of gold per tonne. Previous work done in the adjoining EL 23824 (in which Outback Metals has an interest) exploring for the potential for gold deposits was inconclusive. The area of EL 23824 of interest (ie. south south east of the McKinlay goldmine) is covered by black soil plains with very limited outcrop. However, interestingly, mineral deposits in the area are generally located in shear zones near the flanks of rocks with elevated magnetic responses, so there may be possibilities for repetitions of gold and base metal deposits under cover within the EL 22301 (and EL 23824). This concept may be reinforced by work recently done on the Speargrass deposit, which is located in the south eastern corner of EL 22301. Although the Speargrass deposit and the McKinlay goldmine are different styles of deposits, it does indicate the potential for additional mineral resources to be found outside of the main Mount Wells mine. While a relatively concise reconnaissance trip to the northern area of EL 22301 did not find any mineralised outcrops, it is possible that a properly formulated soil sampling program (? MMI) could have some potential in discovering subsurface mineralisation. Accordingly, work is being progressed to put in place this program later in the 2017 dry season.