2017 Annual Group Report for EL's 9608, 10012, 10347, 23431, 23536, 23540, 23541, 24018, 24051, 24058, 24351, 24405, 24409, 25295, 25748 and ELR 97 Burnside Exploration Project for period ending 15 January 2018 GR185

Abstract

The Burnside exploration group is made up of 15 Exploration Licences (ELs). The tenements are located about 120 km south of Darwin, along the Stuart Highway. The licences were originally granted to various companies including Northern Gold, Dominion Gold Mines Pty Ltd and the Burnside Joint Venture (50:50 Buffalo Creek Mines Pty Ltd and Territory Goldfields NL). After several changes of ownership and mergers, Newmarket Gold NT Holdings Pty Ltd are the current titleholders, now part of Kirkland Lake Gold Ltd ('KL Gold'). KL Gold have two agreements for exploration in place over the Burnside Project. The first is with Rocklands Resources ('Rocklands') for uranium and the second is with PNX Metals Ltd ('PNX' - previously Phoenix Copper Ltd) for all other minerals. The stratigraphy of the Burnside Project area is dominated by the Wildman Siltstone of the Mt Partridge Group and units of the South Alligator Group and the overlying Finniss River Group. This volcano-sedimentary sequence has been moderately to tightly folded along several northwest trending axes within the project area, the most prominent of which are the Howley, Brocks Creek/Zapopan and the Fountain Head Anticlines and the Margaret Syncline. The axial plane of these folds is characterized by intense bedding-parallel faulting and shearing along predominantly north-west trends. The project area is prospective for gold, base metals and uranium, proximal examples of which include Goodall (Au), Cosmo-Howley (Au), Brocks Creek (Au), Woolwonga (Au), Mount Bonnie (base metals), Iron Blow (base metals), Mt Ellison (base metals) and Thunderball (U). During 2017 PNX conducted a significant exploration campaign, which included a significant SKYTEM survey, surface geochemistry (37 rock chips, 16 Au-in-soils analyses, 1402 pXRF measurements), prospect mapping (Barossa, Cookies Corner, Deloraine, Farside, Lady Josephine, Yellow Track, Davies No. 2, Mount Bonnie and Mount Bonnie South), completion of the processing of diamond drill core for the Barossa base metals prospect as part of the CORE co-funding programme (2 holes, 328.7m HQ diamond core drilling) and historical geochemical data compilation. KL Gold also conducted an archaeological survey over the Bons Rush lease during the reporting period.