Annual Report Mineral License 30293 Chessman-Red Queen For Period 14th April 2016 to 13th April 2017

Abstract

ML 30293 forms the southern portion of the Maud Creek Project held by Newmarket Gold NT Holdings Pty Ltd (now a subsidiary of Kirkland Lake Gold Ltd) and currently being explored under an earn-in agreement with PNX Metals ('PNX'). Formally included in group reporting with Maud Creek, this is the second year of term for reporting purposes. The Chessman/Red Queen prospect lies 6.5km NE of the 'Main Zone' Maud Creek gold deposit. It was discovered in 1973 and has been explored sporadically since, but gold concentrations have to date proved to be of lower grade than that of Maud Creek. The target stratigraphy for Maud Creek style mineralisation is Tollis Formation, but locally mineralisation is hosted within fragmental volcanic rocks, black cherts and arenaceous sediments within what has been interpreted as a NE striking graben. During the 2016 reporting year, PNX visited the site and collected two rock chip samples from about 250m west of the Chessman gold occurrence, returning a maximum of 0.11 g/t Au. Further review of the drilling and geophysical data has noted that the mineralised structure which hosts gold mineralisation at Chessman will be amenable to targeting along strike using IP.