GR016 MLC 3, MLC 6 to 14 (inclusive), MLC 19, MLC 43-44, MLC 125-126, MLC 128, MLC 156-157, MLC 507, MLC 509-510, MLC 519, and MLC 664-667 (inclusive) Peko Tailings Project Group Annual Report for the period 1 January 2016 to 31 December 2017

Abstract

The Peko Tailings Project is centred at the historic Peko mine east of Tennant Creek. Mining operations in this area date back to the 1930s (415,000oz Au, 150,000t Cu). The project titles are held % by Sitzler Savage Pty Ltd, which was subject to protracted legal issues between 2009 and 2015. Activity on site was in abeyance during this period. Small scale production of magnetite, had been attempted in the years prior to 2009, with the last operation ceasing in early 2009 due to flooding, financial and ownership issues. Another mine plan was conceived in 2011, however legal disputes between the then owners prevented any further development. In September 2017, Peko Bull Pty Ltd (Peko Bull) acquired Sitzler Savage Pty Ltd from Gibbins Investments (Gibbins Investments) Pty Ltd. Peko Bull aims to develop a suitable processing flowsheet for the economic extraction of Au, Cu, Co and magnetite from the tailings dams, which has the additional benefit of neutralising the acid forming capacity of the historic tailings, removing the sulphides and separating the magnetite from the silicate minerals. In 2016, Peko Bull initiated evaluation works on the tailings dams, which included drilling (19 auger holes for 38m and 46 RC holes for 409m) and metallurgical testing works (447 samples). There has been no exploration activity, of in-situ ore bodies, with-in the Peko tenements for several decades. In future years, Peko Bull intends to adapted a brownfields exploration strategy, which will include i) reviewing existing data, ii) reassessing historical geological models, iii) updating economic parameter assumptions, and iv) accessing the application of new technologies, technics and concepts. If justified, field work will be scheduled (most likely 2019); this would include regional field studies (surface sampling, 3D modelling) and resource drilling. In November 2017, Peko Bull commissioned Massa Geoservices to complete a JORC estimation of Mineral Resources of the Peko Tailings. This maiden JORC report defined the tailings dam with a Inferred Mineral Resource of 3.163Mt, with Au 1.1g/t, Cu 0.22% and Co 0.10%.