MLN 16 Annual Technical Report for the period 5 March 2017 to 4 March 2018

Abstract

This is the first Annual Technical Report for MLN 16, prepared by Core Exploration Ltd (CXO). MLN 16 is located in the Northern Territory, approx 30 km south-southwest of Darwin (as the crow flies, approx 80 km along main roads). The lease covers an area of around 2 km2. MLN 16 and the surrounding 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 (approx 1850 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 5 March 2017 to 4 March 2018, Liontown Resources Ltd (LTR) completed the following activities before CXO acquired the lease in November 2017. LTR, along with CXO and Kingston Resources Ltd, flew a jointly funded airborne magneticradiometric 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 included in Appendix 1 of the first Group 457 Report (Lockheed, A. and Rawlings, D., 2018). CXO acquired Worldview 2 imagery and multispectral data, covering the majority of their Bynoe tenure, including MLN 16. A total of 7 Reverse Circulation holes for 794 m were drilled by Geodrilling from 25 May to 7 June 2017 over the Hang Gong Prospect. Exploration continues to be encouraging, and CXO believes the 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 mapping and surface sampling over the Hang Gong Prospect and follow up RAB and RC drilling.