Group Annual Report for EL 28656, EL 29022, EL 26831, EL 26833, EL 26835, EL 26836, EL 30048, EL 30137, EL 30152, EL 30156 and EL 30158 reporting period 30 September 2017 to 29 September 2018

Abstract

On 29 May 2013, MMG Exploration Pty Ltd (MMG) executed a Joint Venture Agreement (JV) with Sandfire Resources NL (Sandfire). A total of 11 exploration licences and 2 applications are held and are referred to as the North Batten Combined Reporting Area, in the McArthur region of the Northern Territory. The North Batten Project Area is situated within the highly prospective Batten Fault Zone of the McArthur Basin. The primary exploration target for MMG is zinc-lead deposits in black shales of the McArthur Group. Since commencement of the JV, MMG has conducted a systematic desktop review of past exploration and existing interpretations based on structure, stratigraphy and geochemistry. Following several years of stream sediment and soil sampling and of geophysical surveys, the 2017 exploration campaign focussed strongly on diamond drilling while 2018 saw a large-scale IP program across the North Batten project area. The 2017-2018 reporting period saw the drilling of 11 diamond drillholes totalling 4873.79m divided between the 2017 and 2018 drilling campaigns. This report presents the findings for 2017 holes NB17DD044 - NB17DD049 and 2018 holes NB18DD050 - NB18DD053 and NB18DD055. These holes were drilled in the Greater Rosie Creek area including the Rosie Creek and Mt Young prospects as well as at Yalco, Nhumby Nhumby, Cow Lagoon and Berjaya. The holes in the Greater Rosie Creek area sought to intersect a pyritic shale envelope that was found within the Barney Creek Fm at Rosie Creek in 2016. The drilling was either inside of the interpreted Rosie Creek sub-basin or sought to test for extensions beyond the known occurrences. A large Induced Polarisation geophysical survey was conducted within this reporting period focussing on the Greater Rosie Creek area as well as several line-kilometres at Sawtooth, Cow Lagoon and Berjaya prospects. For the current reporting period, a total of $3,869,561 was spent on the North Batten JV Tenements. The proposed work program for the next reporting period includes further drilling in the Rosie Creek sub-basin and the Greater Rosie Creek area and drilling an exploration hole at Berjaya.