2nd Annual Group Exploration Technical Report - Roper Valley Iron Ore Project - Project Report: GR260/12 including ELs 24101, 24102, 26412, 28497 and 30618 for the period 28/02/2017 to 27/02/2018

Abstract

Northern Territory Iron Ore Pty Ltd (NTIO) - Second Annual Group Exploration Technical Report for the Roper Valley Iron Ore Project GR260/12, (including ELs24101, 24102, 26412, 30618 and 28497) covers exploration activity from 28 February 2017 to 27 February 2018. The Roper Valley Iron Ore Project (the Project) camp at Area C is located 550kms by road from Darwin via the Stuart Highway and then via Roper Highway east from Mataranka 140kms towards Sherwin Creek. The Project area lies in the Western McArthur Basin within Roper Group stratigraphy. NTIO explores and develops laterally extensive ironstone units associated with the Sherwin Formation. The 2017 RC drilling programme at Area C was aimed at: testing extensions of known ironstone stratigraphy at Deposit C down dip and along strike from previous drilling; improving knowledge of ironstone grade and thickness trends and mineralisation controls; and testing optimum future grade control sampling practice by twinning previous one metre drill intersections with quarter metre samples. Reverse Circulation (RC) drilling was carried out by NT based WDA Drilling with 60 vertical holes drilled in total, mostly collared within EL 24101 with the remainder in ML 29584. In total, 1,723 metres were drilled, logged and sampled, at either quarter or one metre downhole intervals. Sampling was nominally at single metre spacing in step-out holes and at quarter metre intervals when twinning existing intersections. Site preparation included 15.1 line kms of new track access with 60 pads prepared at 25x25m minimum area. Samples were sent to Intertek in Darwin for crushing and sample preparation. Pulps were on-sent to Genalysis Laboratories in Perth for total iron ore element suite assaying. Certified reference materials (standards) and duplicate drill samples were included in sample submissions for QA/QC assaying purposes. The drill programme was successful in: extending Ironstone Units down dip of previous drilling by several hundred metres in the south west direction; closing off mineralisation to the south in Derim Derim Dolerite Sill; improving plan interpretations particularly of Middle and Lower Ironstone grade and thickness trends; improving understanding of mineralisation controls from the additional drill data and updated grade x thickness plans; and demonstrating that quarter metre sampling can be practical, improves stratigraphic understanding and preferred for grade control precision as it minimized boundary waste dilution effects. Plan interpretation shows a general weakening of grade and thickness of ironstone down dip from the mesa top toward the west, accompanied by a shallowing weathered profile. However, the mineralised stratigraphy may still remain open down dip, as drill hole RR00659, the last hole in the programme suggests. Highest grade and thickness of iron oxide is observed where ironstone outcrops in the structurally complex 'fold nose' exposed along the mesa top. This is possibly enhanced by supergene enrichment processes. Elevated ironstone grade and thickness is also seen on plans along interpreted fold- limb positions. This mineralisation appears continuous for a significant length down dip. The specific Sherwin Bulk Sample Pit design and location appears to be associated with such a corridor of iron enrichment. The drilling metres completed were less than planned. The reasons are varied: a dolerite sill to the south abruptly closed off potential strike extensions of mineralized ironstone in that direction; ironstone extensions down dip were near parallel to surface topography ie confirming shallower targets than planned; a number of distal down-dip holes had very shallow weathering profiles. Such holes were prematurely terminated 10 to 15 metres into fresh rock. Deeper holes are required in these cases to verify either continuity or closure of the mineralised stratigraphy; and some proposed sites in rugged topography were not drilled as they could not be safely accessed by the truck mounted rig. This despite site access and drill pads prepared by experienced D6 Dozer operators. Separate to the drilling programme, NTIO is examining mineral characterisation of the various ironstones from existing drill core from EL 24101 and EL 24102 and pit stockpile samples. This includes both ore sorting and core scanning technology. This work is early-stage to be evaluated within the next reporting period. Elsewhere on the Project detailed ironstone mapping and rock chip sampling was planned for the various Yumanji prospects on EL 26412. However, the programme could not be conducted as planned because of severe bushfires in the area, making helicopter access unsafe. No field exploration activity was conducted on other Project ELs.