Annual Report for year ending 1 February 2018 ML 23839 Mount Porter

Abstract

ML 23839, which hosts a modest gold resource at Mount Porter, was granted to Arafura Resources on 2 February 2005 for a period of twenty-five years. In March 2013 Ark Mines Ltd vended into the tenement as part of the overall Arafura's Mount Porter-Frances Creek gold project, which currently comprises six licenses. Four of the licenses are shared with Territory Resources Limited, which they are entitled to the Fe resources. Ark Mines Ltd agreed to outright purchase of the Mount Porter - Frances Creek gold project on 20 June 2016. The transaction was effected on 7 September 2016. The transaction includes a 2.5% royalty payable by Ark Mines Ltd to Arafura Resources, on gross gold sales of ore mined from the tenements. To date, Arks activities in the Mount Porter region have been directed at preparing for the commercial exploitation of the Mount Porter gold deposit, and the expansion of that deposit. In the 2017 to 2018 reporting period, these including: Continuation of mining feasibility and planning work including; Further pit shell optimisation; Mine scheduling and operational modelling; Further anthropological survey pursuant to receiving AAPA certification C2018-002 in January 2018; Traditional Owner Liaison Committee activity; Maintenance and repair of site access tracks; Completion of a further Fauna survey in accordance with the Mt Porter MMP; Drilling of four RC metallurgical sample holes in MT Porter Central mine area, for 202m from 4 pads; Metallurgical testing, optimisation, regression analysis and modelling; Continuation of the Mt Porter South resource development drill programm; Completion of 35 RC holes for 1465m from 23 pads; Commencement of data interpretation and rebuilding of historic data as support; Mining was due to commence in July but was suspended when Kirkland Lake Gold imposed a Union Reef treatment rate variation; and Commencement of investigations to identify and implement alternative processing.