Annual Technical Report ML 30260 Maud Creek Project Area Year Ending 13 April 2017

Abstract

The Maud Creek Project is situated 18km east of the town of Katherine NT and 275km south east of Darwin. It also includes Red Queen/Chessman group of tenements. Ownership of the tenements has changed several times with Terra Gold Mining acquiring the tenements in 2005. GBS Gold International acquired Terra Gold Mining Ltd on 7th November 2005. GBS Gold Australia went into voluntary administration on 15 September 2009 and all assets including Maud Creek Group of tenements were placed under care and maintenance. After meeting statuary and regulatory requirements, Newmarket Gold Inc. (the Crocodile Gold Australia Pty Ltd) secured the control of all assets including Maud Creek Group of tenement in November 2009. On 14 April 2014, MCN 4145, MCN 4146, MCN 4149, MCN 4150, MCN 4151, MCN 4152, MCN 4218, MCN 4219, MCN 4220, MCN 4221, MCN 4222, MCN 4223, MCN 4224, MCN 4225, MCN 4343, MCN 4344 and MLN 1978 were combined into ML 30260. MCN 4346, MCN 4347 and MCN 4348 were combined into ML 30293. On the 15th of August 2014, Newmarket Gold entered into a farm-in agreement with Phoenix Copper for several exploration projects including the Chessman prospect. Chessman is part of ML 30293. The farm-in agreement also covers the exploration titles at the Maud Creek project. Phoenix have therefore managed the majority of work on ML 30293 but this has been reported in this group report. Within the Maud Creek project area, the oldest exposed rocks are the Palaeoproterozoic Tollis Formation, which comprise tuffs, greywacke, mudstone, laminated quartz arenites and thin banded ironstone. Thick sills of Maud Dolerite have intruded the Tollis Formation. The Maud Dolerite forms irregular bodies up to 200 m wide, and the western margin is strongly sheared and quartz-veined, with well-documented gold and copper mineralisation. Unconformably, overlying the Tollis Formation is the volcanics and sandstones of the Edith River Group. The Kombolgie Formation Unconformably overlies both of the above units, and characteristically crops out as tablelands and mesas. The Cambrian Antrim Plateau Volcanics cover much of the Proterozoic rocks to the south and west of the Maud Creek area. Gold is fine-grained and is associated with pyrite, chalcopyrite and secondary copper mineralisation. During 2015 and 2016, Newmarket Gold Inc. hired the services of SRK Consulting Australsia P/L, who undertook a Preliminary Economic Assessment (Scoping level study) of the Maud Creek project area. During 2016, the group report status was annulled, with both leases now being reported separately. Activities completed on the ML 30260 for the reporting period have centred on the generated Maud Creek study, completed by SRK Consulting Australsia P/L, with the commencement of work on some of the specified recommendations from this study as well as further investigation into their work. Further work on the area included a review of the resource model produced for the tenement.