EL 30242 Mount Cornish Project Annual Report for the reporting period 26 November 2016 to 25 November 2017

Abstract

KGL Resources Ltd., acquired the Mt. Cornish tenement (EL 30242) following the reprocessing of Poseidon Exploration Ltd's airborne EM data by International Geoscience, of 8 May Ave. Subiaco, 6008 WA. The tenement is held by Jinka Minerals Limited, a fully owned subsidiary of KGL Resources Ltd. International Geoscience identified a coincident magnetic-EM trend on Poseidon's Area 2 and KGL applied for the ground. Poseidon did their own follow up work that included soil/ lag traverses but from a review of their reports there were no anomalies identified. A preliminary field reconnaissance visit of the area suggests there is extensive cover. The mag/EM trend is covered with calcrete so surface sampling wouldn't have been effective. KGL Resources Ltd., a Brisbane based company, purchased Jinka Minerals in early 2011 from Reward Minerals Limited. Annual Reporting of activities conducted on EL 30242 is reported by Kentor Minerals (NT) who is the authorised operator of the tenement. There is a very high cost associated with Central Land Council (CLC) exploration agreement negotiations and with the issuing of an Aboriginal Areas Protection Authority (AAPA) tenement Authorisation Certificate. Site visitations and reviews, by the KGL Board, to ascertain the viability of continuing geological exploration activities on EL 30242 were a large component of the costs associated with activities undertaken on the tenement. Activities undertaken by Kentor Minerals (NT) Pty. Ltd included: Site inspection and review; Field geological mapping and observations; and Desktop mapping of field observations. Despite the modest assay values reported previously, it was determined that the mapping of the fine to medium, even-grained biotite granodiorite and leucogranites in the southern portion of the tenement should continue to determine if there was a change in the physical appearance of the outcropping rocks. Continuation of the mapped in the southern portion of the tenement (Figure 2) within the granitic rocks indicated numerous coarser grained, pegmatitic dykes and narrow veins which are potentially a source of rare earth mineralisation and remain a sampling target for future programs. The pegmatite's consisted of medium to very coarse grained sodic plagioclase, quartz, kfeldspar, muscovite, tourmaline, apatite and sphene. The granites have not yet ben classified into the regional geological model. Re-presentation and interpretation of radiometric imagery (Figure 3) was undertaken to gain un understanding of the weathering profile and residual soil geochemistry. The image clearly indicates the potassium rich alteration zones represented by the outcrop mapping. There does not appear to be a high Th signature which may suggest a reduced level of calcareous / ferruginous accumulations in the region. Uranium is also poorly represented in the area that was examined. The Marshall River is well presented by the Total Count imagery however, there appears to be no significant paleochannel representation indicating a consistent flow path of the Marshall River. The re-interpretation of regional, broad spaced, TMI data gave a good visual representation of the sub-surface structural boundaries associated with the Mt Cornish prospect. (Figure 4). The relationship with surface topographical features and trends will be examined as investigations progress. The central region of EL 30242 requires detailed geological and structural mapping in order to understand what moderate zinc and lead assayed rocks (from previous exploration) were associated with and if there is a correlation between surface geological features and subsurface magnetic responses. There has been a limited amount of previous exploration undertaken in several areas of interest and it is expected that the selected areas will be examined during the next field season.