Combined Annual Report for the Northern Project Area GR057/12 16 August 2017 to 15 August 2018

Abstract

Exploration Licences (EL's) in the Northern Project Area (NPA) were acquired by Giants Reef Exploration Pty Ltd (Giants Reef) to search for Tennant Creek style iron oxide coppergold deposits. Giants Reef is a wholly owned subsidiary of Emmerson Resources Ltd (Emmerson). This combined report records the exploration work completed on these EL's during the NPA Combined Reporting period from 16 August 2017 to the 15 August 2018. During the reporting period exploration activities were conducted under the Tennant Creek Joint Venture between Emmerson and Evolution, who has committed to spend $25M over the next 5 years. The JV is now restructuring which will involve the transfer of a number of tenements, all located in the NPA, more confined to the Orlando and Gecko areas, with the remainder of the tenements to remain 100% Emmerson, as outlined in the tenement section of this report. Exploration activities were limited due to focus elsewhere in the Tennant Creek Field which centred around the Mauretania, Gecko and Edna Beryl areas. Exploration activity consisted of the execution of an airborne electromagnetics survey (AEM). The AEM survey was flown by NRG (New Resolution Geophysics) using the 'Xcite' system, the new generation of helicopter-borne time-domain electromagnetic systems, developed by NRG. The key features of the system are; Innovative patented loop design - loop diameter of approx 20m; 30m agl nominal terrain clearance; Exceptional signal/noise; Excellent depth of investigation; Performance in both early and late times; and Dipole moment up to 372,000 NIA. The results from the survey have identified a number areas of interest, but no field testing or evaluation of these targets has been conducted to date, therefore will be discussed in the next reporting period. The survey was flown in May 2018 and is currently in the final stages of processing, interpretation and target generation. These generated targets from this AEM survey aimed at identifying high grade cobalt, copper and gold systems. Emmerson continued its work from the Kenex Pty Ltd (Kenex) predictive modelling for the Tennant Creek Mineral Field and included all titles in the NPA. This product is a statistical predictive tool for predicting the possible prospective sites for Tennant Creek style mineralisation. The model produced many target areas which contain all or some of the essential criteria for possible economic mineralisation in the Tennant Creek Mineral Field. Emmerson has assessed the generated targets and ranked them in order of potential prospectivity. The highly ranked targets were selected for continuing desktop data compilation and validation. Some of these generated targets were part of preliminary field checks during the last reporting period and limited work was conducted during this reporting period, any activities are recorded below where appropriate. Some of the exploration work centred on the Edna Beryl area which is covered by MLC 705 and the Gecko area covered under ML 23969, MLC 323 and 324 and both are not reportable here, although the work completed has direct implications for the NPA and its EL's, therefore a summary is proved below and some more detail in the relevant sections; Exploration in MLC705 - Edna Beryl Area. During the reporting period two significant activities continued 1. exploration based and the second 2. production based. The exploration based activities involved the execution of drilling programs which included 8 Reverse Circulation (RC) holes totalling 1,196m (EBWRC085 - 092). Exploration at Edna Beryl is in its infancy and further exploration is required to define the extent of the number of ironstones in the area, the potential mineralisation of each ironstone and the overall endowment of the Camp. Further geophysics is required, a detailed ground gravity survey will be aimed at identifying the hematite ironstone bodies in the immediate Edna Beryl Mine development area, but also extensions to the known ironstones and a step into a more regional view aimed at identifying new unknown ironstones. The production based activities were based around the commencement of activities to mine the small non-JORC compliant resource that remains at Edna Beryl East under a Tribute agreement between Emmerson Resources Ltd and the Edna Berryl Mining Company. Exploration in ML 23969 and MLC's 323 and 324 - Gecko Area. The exploration based activities involved the execution of drilling programs which included 8 Reverse Circulation (RC) holes totalling 1,903m (GRC1409 - 1416). Exploration at Gecko was aimed at testing the continuity of the copper mineralised structure (the southern bounding structure of the Gecko Shear Zone) between south of the Gecko Headframe and east towards Goanna. The results were mixed but provided enough support for further work and the need for more detailed an new techniques in geophysics. Emmerson commenced the resampling of drill core from the Jasper Hills prospect, although it is within ML 30177 (North Star) it may extend out into the over arching EL 28776 following further works, this will be reporting in more detail in the next reporting period as the study evolves. EL 31831 (formerly part of EL 28913) was surrendered in full, as of 29 August 2018.