Annual Group Report ML 29781, ML 29782, ML 29783, ML 29785, ML 29786, ML 29812, ML 29814, MLN 1058 and MLN 1083, Mount Bundy, Tom's Gully Project 1 December 2017 to 30 November 2018 GR304

Abstract

The GR304-13 tenement group (ML 29781, 29782, 29783, 29785, 29786, 29812 and 29814 and MLN 1058 and 1083) is located some 100 kilometres south-east of Darwin, and incorporates the historic mining operations at Toms Gully, Rustlers Roost and Quest. A number of the ML's in the tenement group are a consolidation of a package of historic MC and MCN's, which were consolidated in 2013. The tenements fall within the Darwin (SD 52 04) 1:250,000 map sheets and the Noonamah (5172) and Mary River (5272) 1:100,000 map sheets. Primary Gold has managed these tenements since February 2013 when they were transferred to the company as part of the acquisition of the Mt Bundy Project from Crocodile Gold Australia Operations (CGAO). The tenements are mostly underlain by sediments of the South Alligator Group, namely the Koolpin Formation, Gerowie Tuff and Mt Bonnie Formation. The exception being the Tom's Gully Group which are dominantly underlain by the older Wildman Siltstone of the Mt Partridge Group, exposed in a gently SW plunging antiform. The Mount Bundy Granite intrudes the South Alligator and Mount Partridge Groups and is central to the mineralisation located at Tom's Gully. The licenses contain significant auriferous quartz vein systems that have been exploited by previous operators. In 2014 Primary Gold lodged a Mine Management Plan (MMP) with the Northern Territory Department of Mine and Energy with regards to the recommencement of operations at Tom's Gully. The MMP was referred to the Environmental Protection Agency (EPA) who in late 2014 advised Primary that an Environmental Impact Statement (EIS) would be required. During 2015 Primary Gold focused on the completion and lodgment of this study. Following the EPA assessment of the EIS in late 2015 a request for further information was received and the company kept working towards a final approval of the EIS. Work included flora and fauna surveys across the Tom's Gully, Rustlers Roost and Quest 29 areas. For Tom's Gully area surface water, groundwater, aquatic ecosystem and baseline acid mine drainage studies have been undertaken. In June 2018 Hanking Australia Investment Pty Ltd took over the owner ship from Primary Gold Ltd (PGO) and became the solo owner of the project. Hanking kept working towards a final approval for the re-commencement of Tom's Gully underground. Exploration and project development activities carried out during the current reporting period can be described as follows: Ongoing preparation for the submission of a supplement to the Environmental Impact Statement; Drilling of six RC and diamond drill holes for 1469.35 metre and 191 samples. Results haven't been received during the reporting year.