Annual Report EL 29484, EL 29510, EL 29670, EL 29762 and EL 30419 GR323, Mountain Creek, year ending 16 April 2018

Abstract

The Mountain Creek Group of tenements consists of five tenements: Exploration Lease (EL) 29484, 29510, 29670, 29762 and 30419 and are located on the Union Reefs and Pine Creek goldfields. The tenements are situated approximately 168 km southeast of Darwin via the Stuart Highway. In 2013, EL 29484, EL 29510, EL 29670 and EL 29762 were granted to Kirkland Lake Gold (then Crocodile Gold, Australia Pty Ltd) for a six-year period. Exploration lease 30419 was granted to Kirkland Lake Gold on June 29, 2015 for a period of six years. The tenement group is situated within the Burrell Creek Formation, which hosts lithologies such as greywacke, siltstone and mudstone. Within the northern parts of the tenement area, rocks from the Mount Bonnie Formation (South Alligator Group) can be found to be intruded and thermally metamorphosed by granites from the McKinlay, Allamber Springs and the Tabletop. The Pine Creek Shear Zone transects the central area of the tenement north-northwest to south-southeast. It is also known to contain high occurrences of gold in the region, with deposits such as Union Reefs, International, Enterprise, Gandys, Czarina and Spring Hill located within the tenement area. Exploration activity during the reporting period included a number of reconnaissance trips being made to the project area to assist with drill program designs and access. Approval was sought from the DPIR to begin RC drilling on the project area, however was not granted. The Company has delayed the drilling, which was to occur over the northern sections of the Mountain Creek area until further notice.