Annual Technical Report GR356 Moline Mining Group MLN 41, MLN 1059 and ML 24173 16 August 2016 to 15 August 2017

Abstract

PNX undertook a significant exploration program during the reporting period, including surface soil and rock chip sampling, and RC drilling. 395 portable XRF sieved soil measurements were taken and 24 rock chips were collected for laboratory analysis. A strong arsenic geochemical anomaly was defined over the Eureka Creek area, proximal to the convergence zone of the mineralised Moline and Hercules trends. In addition, geochemical sampling confirmed strong arsenic anomalism associated with scorodite rich quartz at Simple Dreams. 28 reverse circulation holes for 3106 metres were drilled in two phases, targeting potential mineralisation extensions beneath School, Highway, Moline, Redback, Tumbling Dice and Swan historical pits. Drilling encountered a high grade shoot of gold mineralisation at School, the highlight of which was MORC002 - 7m AT 11.89 g/t Au (from 115m) which is open at depth. At Moline and Tumbling Dice, gold and zinc mineralisation was encountered below the existing pits and is also largely open at depth, the highlight of which was MORC010 - 30m at 2.29g/t Au and 0.70% Zn (from 78m). New gold-zinc mineralisation was also intersected beneath Swan Pit, but results in the Redback area were disappointing.