2017 Annual Report for EL 31099 Bartons for period ending 3 August 2017

Abstract

PNX Metals Ltd (PNX) are exploring EL 31099 as part of the Burnside Project. EL 31099 is 100% held by PNX but exploration is being undertaken on a wider basis as part of an earn-in deal between PNX (51%) and Newmarket Gold Holdings NT Pty Ltd (49%). EL 31099 was granted in August 2016, so this is the first annual report. The tenement is located about 100 km south of Darwin, along the Stuart Highway. PNX are exploring the Project for gold and base metals. EL 31099 lies in a north-south trending structural corridor which is host to many gold occurrences. However, the only known mineral occurrence within the lease area is Bartons (also known as Brumby) which was discovered by WMC in the 1980's. The stratigraphy within the area is dominated by the sediments of the South Alligator Group and Finniss River Group, and particularly the Burrell Creek Formation. The sequence has been moderately to tightly folded along several north-south trending axes, the most prominent of which locally is the Howley Anticline. Mineralisation occurs within folded, faulted and regionally metamorphosed flysch successions, nearly all deposits are within the thermal aureole of granites of the Cullen Batholith (approx 1800Ma). The project area is prospective for gold, base metals and uranium, proximal examples of which include Goodall (Au), Cosmo-Howley (Au), Brocks Creek (Au), Woolwonga (Au), Mount Bonnie (base metals), Iron Blow (base metals), Mt Ellison (base metals) and Thunderball (U). During the year, PNX began compiling and assessing the historical information. A field trip was being planned for 2017.