Annual Technical Report EL 29698 Finniss Project 11 July 2016 to 10 July 2017

Abstract

This is the second Annual Report for EL 29698 that has been prepared by Core Exploration (CXO), who completed an option to purchase the licence in October 2016. EL 29698 forms part of CXOs Finniss Project, which also encompasses ELs 31126, 31127, 31271 and 31279, and ELA 31144. The project area incorporates Palaeoproterozoic aged Burrell Creek Formation of the Pine Creek Orogen (2000-1860 Ma) intruded by pegmatites that are genetically related to the Two Sisters Granite, the north-western-most intrusion of the Cullen Batholith (approx 1850 Ma). These pegmatites belong to the Bynoe pegmatite field, where tin mining commenced in 1882 from alluvial deposits of cassiterite derived from weathered pegmatites. The industrial demand for tantalum during the early to mid-20th century saw the mining of a number of tin-tantalum pegmatites in the region, including within EL 29698. Exploration for lithium in the Bynoe field is still in its infancy, with much of the earlier work not recognising the presence of lithium, and rarely assaying for it; however, recent results reported from both CXO ground and neighbouring tenure indicate encouraging lithium grades that are comparable to some of the lithium grades at Greenbushes in WA, the world's largest lithium mine. During 2017, CXO has been very active exploring the Finniss Project. The following key activities were undertaken: Ongoing geological reconnaissance and surface geochemical sampling over the tenement, concentrating on those areas not covered the previous year; Shallow RAB and Aircore drilling to define pegmatite distribution and geometry; RC drilling for both exploration purposes over numerous prospects and for resource definition work in conjunction with Diamond drilling at Grants and BP33; Petrological studies to better understand the nature of the lithium mineralisation within the resource areas at Grants and BP33; Metallurgical testing to establish the lithium recovery potential and hence the economic viability of the resource at Grants; Calculation of a JORC 2012 compliant mineral resource estimate for the Grants lithium resource; Flying of an airborne magnetic-radiometric survey over the Bynoe pegmatite field; Ongoing trials of various ground geophysical methods to test their effectiveness for pegmatite-hosted lithium exploration. Exploration to date has been very encouraging, and CXO believes the project area has the potential to become a significant lithium producer in the years to come.