Annual Report for EL 28199 Lakewoods Project 2016 to 2017

Abstract

The subject licence is held by Diamond Hard Pty Ltd and operated by Malaco Leichhardt Pty Ltd. The project is located approximately 700 km south of Darwin and 200 km north of Tennant Creek, immediately west of the Stuart Highway and just south of the community of Elliott. The area was originally identified as a conceptual target area based on proprietary methods and modelling conducted by Paradigm Geoscience Pty Ltd. The principal target commodity was diamonds. In later years additional exploration concepts were developed, which involved the search for base metals and copper-nickel-platinoids. Historical exploration in the region had focused on the potential for diamonds and base metals, but was limited due to poorly developed drainage and widespread alluvial and aeolian cover. During the subject period, it was planned to do a ground magnetic survey over the most prospective area delineated by the airborne survey, which was conducted in December 2013. Logistical issues prevented the survey from taking place. Malaco Leichhardt provides technical oversight and operational needs, due to their heavy workload on a possible IPO they were unable to commit the resources needed within the period. This has now been completed and Malaco Leichhardt have agreed to release the relevant assets needed to complete the planned work.