2017 Annual Group Report GR377 MLN 214, MLN 341, MLN 343 and MLN 349 Iron Blow Year ending 31 December 2017

Abstract

PNX Metals Ltd ('PNX') purchased the Iron Blow tenements in late 2014. This is the third of the Group Reports (GR377) pertaining to MLN's 214, 341, 343 and 349 collectively referred to as the 'Iron Blow leases'. PNX are exploring the Iron Blow leases as part of the Hayes Creek Project, which also includes the Mount Bonnie leases located approximately 2 km to the south. Iron Blow is a polymetallic Au, Zn, Ag, Pb and Cu deposit within the Pine Creek Orogen, discovered in the 1870's and mined sporadically up to 1985. It produced approximately 13,700t of oxide and sulfide ore in the early 1900's of gold and a further aprox 15,000t of oxide ore was treated in 1985-86. During the 2017 reporting period, PNX, completed a prefeasibility study, which included metallurgical testwork, process plant design, geotechnical studies, hydrogeological studies, environmental studies, resource estimation, surveying and financial evaluation. Drilling during the period consisted of 3 diamond holes carried on from the 2016 resource work program and 6 RC holes for hydrogeological testing. In addition, a Skytem helicopter born EM system was flown at 100m spacing for approximately 5 line km over Iron Blow (and more over surrounding leases). Further work will include engineering an environmental studies in support of the definitive feasibility study, expected to be completed in 2018, and environmental studies in support of project approval.