Bynoe GR457 EL 29698, EL 31126, EL 31127, EL 31271, EL 31279, EL 29699, EL 30012 and EL 30015 Group Annual Technical Report for period 21 September 2016 to 28 February 2018

Abstract

This is the first Group Annual Report for the Bynoe Group (GR457) which includes EL 29698, EL 31126, EL 31127, EL 31271, EL 31279, EL 29699, EL 30012 and EL 30015, prepared by Core Exploration Ltd (CXO). The tenement's make up CXO's Finniss and Bynoe Lithium Projects, and are located in the Northern Territory, approx 25 - 65 km north-northwest of Darwin (as the crow flies, approx 70 - 80 km along main roads). The tenements cover an area of around 485 km2. The project area incorporates Paleoproterozoic 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 (approx1850 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. 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. From late September 2016 to late February 2018, CXO has been very active exploring the Finniss and Bynoe Projects with the following key activities undertaken. CXO, along with Liontown resources Ltd (LTR) and Kingston Resources Ltd, flew a jointly funded airborne magnetic-radiometric survey was completed in early 2017. The survey was flown by Thomson Aviation and totalled 2,234-line kilometres covering a total area of 385 km2. Clipped data (per tenement) has been previously reported and submitted by each company, however the complete data set is submitted with this report (Appendix 1). CXO has continued to review historical reports from the area and completed field reconnaissance at many new significant prospects. CXO undertook hylogger studies through the Northern Territory Geological Survey on chip and rock samples from BP33, AH Hoys and various other prospects. Fluorescence studies were also completed on a number of chips from the BPP33 and Ah Hoys Prospects. CXO acquired Worldview 2 imagery and multispectral data, covering the majority of the Bynoe tenure, including newly acquired LTR tenements. Loza Radar Australia (LRA) was contracted to undertake a trial of its innovative GPR system at Finniss in two stages over July and August. In all, 69 lines of 100-500 m length (25 km total) were rolled out at various prospects at Finniss, including Grants and Grants West. Surface sampling consisted of 194 rockchip samples collected (188 assayed) over 11 prospects and 5045 soil samples collected (5003 assayed) over 17 prospects. RAB drilling was completed over 16 prospects with 1,375 holes drilled, totalling 20,270 m with 1,149 samples assayed. AC drilling of 211 holes totaling 1,972.5m was undertaken at the Zola Prospect with 483 samples collected for assay. A total of 113 reverse circulation holes for 14,836 m were drilled and 2250 samples submitted for assay. 10 diamond holes totalling 1,685.4 m were drilled at BP33 and Grants (5 holes at each prospect). 549 quarter and half core samples were prepared and submitted for analysis. Exploration continues to be very encouraging, and CXO believes the project area has the potential to become a significant lithium producer in the years to come. Exploration work planned for the remainder of 2018 and into Q1 2019 will include shallow RAB and Aircore drilling to define pegmatite distribution and geometry on a prospect scale, collation of a geological dataset for prospect scale targeting, RC and Diamond drilling for both prospect-scale exploration and resource definition, discovery of further resources to add to the known resource at Grants