2nd Annual Report EL 31451 for the period 8th September 2018 to 7th September 2019 Mt Douglas Project NT

Abstract

This report covers exploration during Year 2 of EL 31451. The EL was applied for by ML Global Pty Ltd (MLG) on 15th November 2016 and granted for 6 years on 8th September 2017. While there has been considerable exploration for gold, and some for base metals, iron and uranium in the region surrounding EL 31451, overall the area of this EL has been inadequately explored. EL 31451 was granted over the maximum EL size of 250 blocks, an area of about 834km2. It was applied for when interest in exploration in the NT was probably at its lowest point in some time due to market related forces, in late 2016. The area covers multiple geological settings of significant prospectivity for deposits of gold, base metals and uranium that have received less attention than surrounding areas in past exploration because of restricted access, or exploration logistics issues such as recent cover of the rocks favourable for mineralisation. The area covers portions of the drainage of the Margaret River (part of the Adelaide River system), and the McKinlay/ Mary Rivers catchments. It is centred about 130km to the south- east of Darwin, but extends from a few km south of the Rustlers Roost Mine near Mount Bundey as far as the Mary River near Mount Harris and just a few kilometres short of Mary River East Homestead at the confluence of Frances Creek and Mary River. In Year 2 of the Licence, MLG completed the review of past work commenced in Year 1, which led to the formulation of a field work programme to follow up the opportunities identified by the review. Sixteen targets were identified and the majority of these were subjected to field inspection and if warranted sampling. Eleven prospects were sampled, and 72 samples collected, almost all from outcrop. The highest gold result was 1.14g/t Au from the Hill 5 target, a mediocre result. Many of the target areas did return consistently anomalous gold values, and still represent large target areas where the new mapping and sampling has identified opportunities to be followed up. Several of these point to targets where poor exposure of bedrock in the target areas means that the reconnaissance did not eliminate gold mineralisation potential. Additional detailed prospecting and sampling which may lead to drilling recommendations is recommended. Perhaps the most important result was the discovery of a probably epigenetic uranium bearing ferruginous zone in Mount Bonnie Formation near the unconformity with Kombolgie Sandstone at Mount Douglas, which returned values of up to 750ppm U, possibly the highest uranium value yet obtained around the Mount Douglas Outlier, a structure reminiscent of those hosting Unconformity- related Uranium deposits, probably the most important uranium deposit style. The discovery was made by follow- up of detailed airborne radiometrics that only became available after the commissioning company had abandoned its uranium exploration strategy. This definitely warrants follow up from a technical perspective while we recognise the difficulties of the current market for uranium. The area has been substantially reduced for Year 3, but the area retained of 146 blocks still covers all of the prospects identified and described in this report. In the absence of increased funding through introduction of a funding partner, a programme of continuing low key but effective prospecting, mapping and sampling is recommended for Year 3, with the aim of further developing targets for drilling when investors can be introduced to the project.