2018 Annual Report for EL 31099 Bartons for period ending 3 August 2018

Abstract

PNX Metals Ltd (PNX) are exploring EL 31099 as part of the Burnside Project. EL 31099 is 100% held by PNX but exploration is being undertaken on a wider basis as part of an earn-in deal between PNX (51%) and Newmarket Gold Holdings NT Pty Ltd (49%). EL 31099 was granted in August 2016, so this is the second annual report. The tenement is located about 100 km south of Darwin, along the Stuart Highway. PNX are exploring the Project for gold and base metals. EL 31099 lies in a north-south trending structural corridor which is host to many gold occurrences. However, the only known mineral occurrence within the lease area is Bartons (also known as Brumby) which was discovered by WMC in the 1980's. The stratigraphy within the area is dominated by the sediments of the South Alligator Group and Finniss River Group, and particularly the Burrell Creek Formation. The sequence has been moderately to tightly folded along several north-south trending axes, the most prominent of which locally is the Howley Anticline. Mineralisation occurs within folded, faulted and regionally metamorphosed flysch successions, nearly all deposits are within the thermal aureole of granites of the Cullen Batholith (~1800Ma). The project area is prospective for gold, base metals and uranium, proximal examples of which include Goodall (Au), Cosmo-Howley (Au), Brocks Creek (Au), Woolwonga (Au), Mount Bonnie (base metals), Iron Blow (base metals), Mt Ellison (base metals) and Thunderball (U). During the year, PNX undertook an initial reconnaisance geology program consisting of four rock chip samples, 9km SkyTEM airborne survey and Reprocessing/merging magnetic dataset as part of a wider survey across the Santorini and Ithica Prospects on adjoining tenement EL 25748. PNX Metals also undertook a significant and successful RC drill program over the Cookies Corner Prospect, North West of the old Goodall Mine, on adjoining EL 10012. Despite the exploration expenditure being concentrated on the two contiguous tenements EL 25748 and EL 10012, EL 31099 forms an important and highly prospective part of our Burnside Project Area and will be subject to significant exploration focus over the coming years.