Annual Report for the period 5 November 2016 to 4 November 2017 EL 24305 Walker River

Abstract

EL 24305 is a part of the original EL 385 application made in 1972 by CRA Exploration Pty Limited (CRAE) the precursor to Rio Tinto Exploration (RTX) the current holder. Partial consent of EL 385 resulted in the granting of two separate licences (ELs 385 and 24304) in June 2004. EL 24305, an application in moratorium resulting from EL 385, was granted on the 5th of November, 2015. The tenement is located approximately 180km south-west of Nhulunbuy, and 80km north of Numbulwar in south east Arnhem Land and on Aboriginal Land Rights Act 1975 (ALRA) land managed by the Northern Land Council (NLC). The tenement is considered prospective for base metal mineralisation, similar to that at McArthur River (HYC) in the McArthur Basin. In January 2014 Rio Tinto Exploration and DPG Resources Australia Pty Ltd entered into an Earn In and Joint Venture Agreement with DPG managing the tenements. This applies to EL 24305 as well as EL 385, 23565 and 30952 and ELA, 844, 5561, 24305, 27919, 27920, 30953, 30954,30955, 30956, 30957, and 30958. The target on EL 24305 and adjoining tenements is SEDEX style base metal mineralization. The Balbirini Dolostone has 'gossanous' outcrops which are silicified and ferruginous, samples of which taken in the early 1970's reported elevated lead values to 2.7%. Previous soil and rock chip sampling show the initial target area has encouraging surface geochemistry with soil and chip sample results of anomalous lead, including a 1400m long contour of plus 500ppm lead with a maximum of 2800ppm lead. Rock chips have confirmed the soil results with values as high as 1.8% lead. Drill testing which finished in November, 2016 has better defined geology of the Balbirini - Jalma - Coast range SSt package. Assay results from the drilling are consistent with the surface geochemistry and included intervals of up to 9.5m at 4587 ppm Pb from 35.5m; 4 m at 414 ppm Zn from 29m; 9.0m at 588 ppm Cu from 33m; and 2.5m at 15.1ppm Ag from 39.5m. Work undertaken during the year was conducted in conjunction with work on EL 385 and included assessment of drilling data and drill core collected during 2016. An expert consultant with experience in the McArthur Basin undertook a review of the Walker River drill core, however, their report has not been received in time for this annual report.