Annual Technical Report EL 28616 Moline Exploration Project for period ending 19th January 2018

Abstract

EL 28616 is an amalgamation of seven previous Exploration Licences (EL 22966, EL 22967 EL 22968, EL 22970, EL 23605, EL 24127 and EL 24262) that surrounds the Moline goldfield and is now part of the Moline Project. The tenement is about 245 km from Darwin via the Stuart Highway and then the Kakadu Highway. This annual technical report covers the Moline exploration activities from 20th January 2017 to 19th March 2018. Gold mineralisation at Moline occurs within greywacke, siltstone and carbonaceous phyllite of the Mt Bonnie Formation. In addition, it occurs in the meta-greywacke and slate of the Burrell Creek Formation. Base metal mineralisation is also being targeted, with potential skarn, VMS, or hydrothermal vein types plausible. The Evelyn Ag-Pb-Zn historical workings are a local example of skarn mineralisation. PNX undertook a significant exploration program during the reporting period, including surface soil and rock chip sampling, IP surveying and RC drilling. 1313 portable XRF sieved soil measurements were taken, 55 soil samples using 80-mesh sieves and 40 rock chips were collected for laboratory analysis of Au and base metals. Three blocks were chosen for initial gradient array tests which are either partially or wholly within EL 28616. The data was collected by Zonge in frequency domain with 3-point coupling, 50m Rx dipoles, NE-SW orientation, 100m line spacing at 0.125Hz. Results were modelled by consultant geophysicists at Terra Resources. Two reverse circulation holes for 240 metres were drilled targeting potential mineralisation from this modelling at the Mango prospect opposite the Moline golf course.