Annual Technical Report GR356 Moline Mining Group MLN 41, MLN 1059 and ML 24173 16 August 2018 to 15 August 2019

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. In late 2018, PNX Drilled one diamond drill hole, MODD043, for 114 metres into Tumbling Dice mineralisation to gain metallurgical samples and to test extensions of the mineralisation. A second diamond hole was drilled as a diamond tail on existing RC drill hole MORC014, for 38.4 metres targeting potential mineralisation extensions beneath School historical pit. PNX is also reporting on 2 diamond tails which were drilled at the very end of the previous reporting period. Hole MORC036 which was originally drilled for a total of 120m was extended by 35.9m with diamond drilling and relabelled MORC036D. MORC042 was extended from 85m EOH to 180.4m with a total of 95.4m diamond and was re-labelled MORC042D.