Annual Technical Report GR458 Barrow Creek Lithium Project to 7 December 2017

Abstract

This is the first Amalgamated Group Reporting of the Core Exploration Ltd (CXO) Barrow Creek Lithium Project (GR458), comprising three exploration licences over the historical Barrow Creek Pegmatite Field (EL's 31145, 31146 and 31058). All three EL's are held 100% by Lithium Developments Pty Ltd, a wholly owned subsidiary of CXO. Each of these tenements are now in their second year of tenure (EL 31058 was granted 2 August 2016; EL's 31145 and 31146 were granted 7 November 2016). In the Project area, swarms of intrusive pegmatite dykes and sills comprising the Barrow Creek Pegmatite Field are related to the Ooralingie and Bean Tree granites of the Barrow Creek Granite Complex. The Barrow Creek Granite Complex is one of several large Palaeoproterozoic felsic intrusive complexes in the region with ages in the range 1820-1789 Ma. Pegmatite veins vary compositionally and texturally from medium-to coarse-grained equigranular quartz-feldspar-muscovite-tourmaline-garnet pegmatite, quartz-rich muscovite-tourmaline pegmatite, compositionally segregated (zoned) quartz-muscovite/quartz-feldspar-tourmaline pegmatite and megacrystic feldspar-bearing pegmatite. Greisenisation associated with pegmatite intrusion is also common. The pegmatite swarms and granite bodies intrude the poorly exposed Palaeoproterozoic Lander Rock Formation and mafic intrusive rocks of the Aileron Province, Northern Arunta. Rocks of the Lander Rock Formation exhibit LP-HT metamorphic grade and generally comprise biotite-muscovite-andalusite-bearing metapelitic, metapsammitic and metapsammo-pelitic schist. The pegmatite occurrences in the Barrow Creek Pegmatite Field have previously provided opportunities for the discovery of commodities such Sn-Ta-W. However, prior to investigation by government geologist Frater (2005), no historical exploration or prospecting investigations had explored the potential for pegmatite-related lithium (Li) mineralisation. Geochemical analysis by Frater (2005) on samples from historical prospects within current EL 31058 strongly indicate the potential for Lithium-Caesium-Tantalum (L-C-T) Type pegmatite associations and mineralisation in the Barrow Creek Pegmatite Field. Consequently, the potential for discovery of prospective L-C-T Type pegmatite mineralisation provides a significant opportunity consistent with the current strategic profile of lithium-focussed CXO. No on-ground work was conducted on EL's 31145 or 31146 during the respective reporting period 8 December 2016 to 7 December 2017. This is largely due to a substantial commitment of resources and funds by CXO to pursue an aggressive resource definition drilling campaign at the Finniss Lithium Project area, proximal to Darwin. Nevertheless, CXO believes there is an excellent fit between the lithium potential of Barrow Creek Pegmatite Field (also the nearby Anningie Tin Field), direct rail link to Darwin Port and the Finniss Lithium Project. Consequently, and during this first year of tenure, active on-ground exploration of the Barrow Creek Project area was restricted to the better exposed and logistically more accessible historical pegmatite prospects of EL 31058. During the reporting period 2 August 2016 to 7 December 2017 for EL 31058, CXO undertook regional and prospect scale exploration which included 381 rock-chip samples, prospect-scale mapping and 2,342 soil samples. The analytical results of these samples confirm the pegmatite field in EL 31058 to be highly prospective for L-C-T type pegmatite-hosted lithium mineralisation. Results of the initial soil sampling program also suggest a substantially larger footprint of lithium anomalism than depicted by the extent of historic pegmatite workings. Thirteen (13) potential pegmatite-hosted targets have been identified, 3 of which (Ringing Rocks, Jump-Up and Tesla) rank as high priority for follow-up drilling based on surface geochemistry and mapped scale. Of these, a newly-defined Tesla lithium soil anomaly has ~5 km of strike potential for lithium-bearing pegmatite. The exploration work conducted by CXO during the reporting period has progressed the Barrow Creek Project across EL 31058 and significantly enhanced the pegmatite-related lithium prospectivity of the entire Barrow Creek Pegmatite Field, including surrounding EL's 31145 and 31146 held by CXO. Significant additional work includes planned follow-up RAB and RC drilling to better understand the geological environment and potential of the mineralising systems. Better definition of any mineralising systems in the area will significantly assist further exploration efforts such that recognised associations and trends may be pursued into surrounding areas (EL's 31145, 31146) where prospective basement rocks are largely undercover. Further investigations of this potential will be ongoing. CXO are encourage to continue work on this project and believes there is an excellent strategic fit between the lithium potential of Barrow Creek Pegmatite Field (also the nearby Anningie Tin (Pegmatite) Field), direct rail link to Darwin Port and the Finniss Lithium Project. This strategic fit in turn expands potential for Darwin to become long-term, central processing and transport hub for NT lithium and spodumene production for CXO.