2018 Annual Group Report GR431 MLN 794, MLN 795 and ML 30936 Golden Dyke Dome year ending 31 December 2018

Abstract

PNX Metals Ltd ('PNX') purchased the Golden Dyke Dome tenements in July 2016. This is the third of the Group Reports (GR431) pertaining to MLNs 794 and 795 and ML 30936 collectively referred to as the 'Golden Dyke leases'. PNX are exploring the Golden Dyke leases, as part of the Burnside Project, which also includes surrounding ELs (reported separately in GR185). The Golden Dyke leases lie within the Pine Creek Orogen, in an area that has been subject to significant previous exploration interest since gold was discovered in the 1870's. Sporadic mining up to 1988 has exploited narrow, high grade veins, but with limited strike extent. Previous exploration has focussed mostly on the oxide zones. PNX are exploring the area primarily for gold, but also base metals. During the 2018 reporting period PNX employed a new Geology Manager and Exploration Geologist. Work attributable to the Golden Dyke Dome group of tenements consisted of geology and exploration targets review as way of familiarisation of the project for the new employees. No 'on-ground' exploration was conducted on the ML's during this report period due to resources being prioritised on nearby Fountain Head resource extension as part of the Hayes Creek Project DFS. Golden Dyke Dome group of ML's remain a strategic part of the Hayes Creek Project resource potential.