Annual Technical Report GR356 Moline Mining Group MLN 41, MLN 1059 and ML 24173 16 August 2017 to 15 August 2018

Abstract

This is the third annual technical report combining the Moline mineral leases MLN 1059, MLN 41 and ML 24173. Theses leases held jointly by Newmarket Gold NT Holdings Pty Ltd (49%) and PNX Metals Ltd (51%) and are being explored for gold and base metals by PNX, while Rockland Resources have the rights to uranium. The Moline mineral leases are located about 240 km SE of Darwin. They cover the Moline Goldfield (including the Hercules, School, Moline and Tumbling Dice deposits) as well as numerous small gold and base metal occurrences and historical workings in the area. The tenements encompass a suite of meta-sedimentary rocks which belong to the Burrell Creek and Mt Bonnie Formations. Locally these rocks are isoclinally folded with fold axes plunging at shallow angles to the south east. Mineralisation is found in zones of pyrite, quartz, and brecciated country rock with minor veinlets of sphalerite, tetrahedrite, arsenopyrite, chalcopyrite and carbonates. PNX undertook a significant exploration program during the reporting period, including surface soil and rock chip sampling, and RC drilling. 11 reverse circulation holes for 1206 metres were drilled targeting potential mineralisation extensions beneath Moline, Trig and Tumbling Dice and Swan historical pits. Drilling encountered a high-grade shoot of gold mineralisation at Tumbling Dice, the highlight of which was MORC039 - 1m at 8.89 g/t Au (from 115m) which is open at depth. At Moline, gold and zinc mineralisation was encountered below the existing pits and is also largely open at depth, the highlight of which was 2m at 2.16 g/t Au from 63m in MORC038 and 6m at 1.53 g/t Au from 69m in MORC038 Three blocks were chosen for initial IP gradient array tests which are either partially or wholly within MLN 24173 and MLN 1059. The data was collected by Zonge in frequency domain with 3-point coupling, 50m Rx dipoles, NE-SW orientation, 100m line spacing at 0.125Hz. Results were modelled by consultant geophysicists at Terra Resources. Three targets areas, Swan and waterhole were identified for further RC drilling. In addition, Uber-air conducted a high-resolution aerial survey to create digital terrain modelling (DTM) over two large 2 x 4 km blocks partially in ML 24713 and MLN 1059. Finally, 375 portable XRF sieved soil measurements were taken and 3 rock chips were collected for laboratory analysis in this reporting period.