Narndee Regional Polymetallic-Gold Project Geology and Mineral - - PDF document

SLIDE 1

Page | 1

NEMEX Pty Ltd

Narndee Regional Polymetallic-Gold Project

Geology and Mineral Potential

Prepared by James Guy and Associates Pty Ltd January 2020

SLIDE 2

Page | 2

Table of Contents

EXECUTIVE SUMMARY 4 1.0 Introduction 5 2.0 Location and Access 5 2.1 Climate and Landform 6 3.0 Tenure 6 4.0 Regional Geology and Mineralisation 8 5.0 Previous Mining and Exploration 11 5.1 Narndee Project 11 5.2 Killarney Project 14 5.3 Canegrass South Project 15 6.0 Project Geology and Mineralisation 16 6.1 Narndee Project 16 6.2 Canegrass South Project 20 7.0 Mineralisation and Targets 21 7.1 Narndee Project 21 Narndee Copper -Zinc Prospect 21 Yaloginda Regional Copper -Zinc Target 27 Nickel -Copper PGE Potential 28 7.2 Killarney Gold 28 7.3 Watsons North Vanadium Prospect 29 7.4 Muleryon Hill 29 7.4 Canegrass South Project 31 References 32 List of Tables Table 1 Tenement Details Table 2 Narndee Project Past Exploration Summary Table 3 Killarney Project Past Gold Production Table 4 Killarney Project Past Exploration Summary Figure5 Canegrass South Past Exploration Summary Table 6 Narndee Cu/Zn Prospect Significant Drill Intercepts

SLIDE 3

Page | 3 List of Figures Figure 1 Regional Location Plan Figure 2 Tenement and Topography Plan Figure 3 Regional Geological Setting and Mineral Prospects Figure 4 Regional Stratigraphic Scheme Figure 5 Narndee Project Past Exploration Summary Plan Figure 6 Canegrass South Past Exploration Summary Plan Figure 7 Narndee Project GSWA Surface Geology Plan. Figure 8 Killarney Prospect Interpreted Geology and Workings Figure 9 Canegrass South GSWA Surface Geology Plan Figure 10 Narndee Copper Zinc Prospect Exploration Plan Figure 11 Narndee North Drill Plan Figure 12 Narndee South Drill Plan Figure 13 Narndee Project Regional VMS Horison Plan Figure 14 Killarney Project Past Work and Gold targets Figure 15 Watsons North Vanadium Target Figure 16 Canegrass South Exploration Targets

SLIDE 4

Page | 4

EXECUTIVE SUMMARY

Narndee Project comprises 845 sq. kilometres of tenure in the Yilgarn Murchison Province of Western Australia Murchison Province hosts world class Gold, Base metal, and Vanadium Deposits Narndee Project has had little effective exploration in the last 20 years Santa Fe Minerals Ltd (SFM), Aldora Resources Ltd (ARN both actively exploring in the area Venus Metals Corporation (VMC)/ Rox Resources (RXL) Youanmi Gold Project 30 km to the east Spectrum Metals (SPX) Penny West High-Grade Gold Project 45 km to the east Archean Norrie Group basalts and felsic volcanic intruded by Windamurra and Narndee Layered I intrusions. Narndee Copper Zinc Project Volcanogenic Massive Sulphide Base Metal mineralisation Target. 27 out of 30 RC holes intersected >0.1% copper or zinc mineralisation Drill Results include

• NRC 07

4m at 0.28% Cu,

• NRC11

4m at 0.27% Cu

• NRC14

2m at 1.5% Zn

• NX12-04

7m at 0.42% Cu

• 4m at 0.54% Cu
• 3m at 2.40% Zn
• NX12-11

2m at 3.81% Zn

• NX12-13

9m at 0.44% Cu Drilled to 190m below surface Approximately 14 km strike of prospective stratigraphy untested and largely under cover No effective surface or downhole geophysical surveying Killarney Gold Target Shear hosted Quartz Reef target Two sets of historical old workings Gold mineralisation associated with shearing in the Windamurra gabbro units or on margins

• f Layered Intrusion

On tested by shallow drilling Area largely under cover

SLIDE 5

Page | 5

1.0 Introduction

Nemex Pty Ltd has pegged a portfolio of exploration licences totalling 845 square kilometres covering parts of the Narndee and Windimurra Layered Igneous Complex (LIC) and older Archean bedrock in the Murchison Region of Western Australia The Murchison District host a number of significant million-ounce gold camps at Mt Magnet, Cue, Sandstone as well as the world class Golden Grove volcanogenic massive sulphide (VMS) deposit. In addition, significant Vanadium and Uranium deposits have been identified within the Windimurra and Narndee LIC’s There have been a number of exploration programs across the project areas since the1960’s. These have tended to focus on PGE and nickel sulphide potential within the ultramafic units within the LIC’s, as well as VMS mineralisation within the older Archean sequences. To date this work has defined a strong VMS Copper – Zinc signature at the Narndee Prospect. A number of drill campaigns have returned significant intervals of disseminated copper, zinc and lead mineralisation within chlorite schists and BIFs that have been intruded by gabbro’s. As VMS deposits typically occur as clusters, the potential for additional VMS discoveries with the host Yaloginda Formation is considered high. The project is also considered prospective for vanadium, and also potentially gold and further exploration for nickel sulphide mineralisation is warranted. The majority of the work complete to date has been surface geochemical sampling. As there have been a number of different surveys using different sampling and analytical techniques and analysing for different element suites it is difficult to level the data to effectively interpret the data. The company believes the area warrants a focused exploration program utilising standardised auger geochemical sampling across areas of transported cover to define geochemical targets which can be tested with high powered ground geophysical surveys to define high quality

2.0 Location and Access

The project areas are located approximately 500km north east of Perth, the state capital of Western Australia and approximately 300 km from the port city of Geraldton. Access is via the sealed Great Northern Highway, and a series of well-maintained unsealed shire roads and station tracks The historic gold mining town of Mt Magnet is located approximately 60 km to the north west of the project and acts as a regional base for exploration activities. Pastoral stations within the project area

• ffer accommodation facilities to support field crews

The project straddles the Yalgoo and Murchison Mineral Fields and is covered by the KIRKALOCKA SH5003, and NINGAN SH5007 1: 250,000 map sheets and the Challa (2541) Windimurra (2641), Coolamaninu (2540) and Bungur (2539) 1:100,000 map sheet

SLIDE 6

Page | 6

2.1 Climate and Landform

The area is used primarily for pastoral agriculture and comprises gentle plains that are either covered by saltbush or acacia scrub or isolated moderately timbered hills. The region is in a temperate desert region with the average summer daytime temperature of around 35O and the average winter temperature of around 15O. The average rainfall in 200mm per annum, with most of the rain falling between February and July.

3.0 Tenure

The table below lists the tenements that form the basis of this report and their current details Tenement Registered Holder Status Blocks Area

• Sq. km

Date Granted E58/539 Nemex Pty Ltd Pending 45 136 E58/546 Nemex Pty Ltd Pending 52 157 E59/2338 Nemex Pty Ltd Pending 44 132 E59/2378 Nemex Pty Ltd Pending 70 210 E59/2399 Nemex Pty Ltd Pending 70 210 Table 1 Tenement Details The entity holding the tenements is associated with Mr. Bruce Legendre The total project area is a approximately 845 sq. km. All the tenements are currently ungranted. Figure 1 Location Plan

SLIDE 7

Page | 7 Figure 2 Tenement and Topography Plan

SLIDE 8

Page | 8

4.0 Regional Geology and Mineralisation

The project area is located within the north western Yilgarn Craton of Western Australia, lying along the boundary of the Murchison and Southern Cross granitoid greenstone provinces (figure 2). The regional geology is dominated by typical Archaean granite greenstone terrain, with the greenstone sequences dated between 3.03Ga and 2.8Ga and the granites at 2.95 Ga and 2.6Ga. The project area covers parts of the Windimurra and Narndee Layered Igneous Complexes (LIC) and surrounding supracrustal rocks. The oldest Archaean rocks in the area belong to the Norrie Group (approx. 2800Ga) which comprise the Murrouli Basalt Formation, the Yaloginda Formation, and the Kantie – Murdana Volcanic Member. This sequence has been extensively stopped out by latter intrusions, and only isolated rafts of the greenstone sequence remains. The Murrouli Basalt comprises interbedded Ti-rich, Al-depleted komatiites and komatiitic volcanoclastic sediments, and a thick succession of pillowed and massive tholeiitic basalts. The unit is thought to be conformable with the overlying Yaloginda Formation and the Kantie- Murdana Member. The Yaloginda Formation and Kantie – Murdana Member both consists of rhyolite, fine to medium grained felsic volcanoclastic sediments with interbedded units of ferruginous shale, and banded iron formation. The Windimurra and Narndee LIC have intruded the Norrie Group along pre-existing deep crustal

• structures. The contacts between the intrusive complexes and Norrie Group sequences are not well
• understood. The Windimurra LIC is an elliptical body with dimensions of approximately 85 km north-

south and 35 km east-west, and covers a total area of approximately 2350 sq. km. The magmatic layering dips inwards from the margins and flattens in the centre of the complex, consistent with the complex having a basin-shaped or lopolith form (Ahmat 1986). The Windimurra LIC is dominantly comprised of basic cumulate rocks, that can be broadly classified as gabbroic in composition. Work undertaken by Ahmat, 1990, and Ivanic 2016 has developed an internal magmatic stratigraphy for the complex, comprising from the base to top:  Dolerite Border Zone -typically 100m thick and occurs along the boundary between the sheared supracrustal rocks and lower gabbro Zone.  Ultramafic Zone –the only exposure is in small outcrops close to Muleryon Hill. Characterized by abundant peridotite.  Lower Zone -hosts olivine-rich gabbro’s and gabbronorites, that grade upward to leucocratic gabbro’s. Unit is layered on a centimetre to metre scale and rock types repeated every 200m.  Middle Zone -composed of troctolitic rocks with intercummulus magnetite.  Upper Zone –magnetite-bearing leuconorite, and anorthosite with locally abundant

• magnetite. This unit hosts the Windimurra V205 deposit.

 The Corner Well Gabbro -a late phase series of gabbroic pipes which intrude into the middle and upper zones of the western lobe of the Complex.  The Roof Zone -comprises kilometre-scale tabular dolerite and porphyritic dolerite and gabbro’s.  Unassigned units -comprise units that have become detached from the known stratigraphy and are not of a distinctive composition. The sequence hosting the Watsons Well Prospect is an unassigned unit.

SLIDE 9

Page | 9 Figure 3 Regional Geological Setting and Mineral Prospects

SLIDE 10

Page | 10 The Narndee LIC occupies the majority the southern part of the project. The complex consists of rhythmically layered ultramafic and gabbroic sequences, which are poorly exposed over a strike length

• f approximately 50 kilometres. The complex covers a surface area of approximately 700 sq. km and

is interpreted to represent a cumulative stratigraphic thickness of 6-9 km. The internal stratigraphy of the Narndee LIC has been subdivided into three zones  Upper Ultramafic Zone -approximately 1 km thick composed of pyroxene peridotite and

• livine pyroxenite.

 Middle Zone -cyclically layered pyroxenite and gabbronorite up to 2 km thick.  Lower Zone -cyclically layered peridotite–pyroxenite-gabbronorite – anorthosite. The youngest rocks in the area are the Mt Kenneth metagranite which comprises a series of small plutons intruding within both complexes. Regional metamorphism is low grade except in shear zones. Two north - south striking regional shears, the Wyemandoo Shear to the east and the Mullyubarya Shear to the west, separate the greenstone sequences from the basement granite gneiss terrane. Both shears have been interpreted as part of a regional anastomosing shear system. The Wyemandoo Shear incorporates? mafic and felsic schists and banded iron formation and may also include rocks of granitic

• composition. At its southern extent, the shear cuts the lower units of the Windimurra LIC. Further

north the Wyemandoo Shear forms the sheared eastern boundary between the gabbroic bodies and

• granitoids. On the western boundary, the less well defined Mullyubarya Shear separates the

greenstone sequences from basement granitoids. The Mullyubrya Shear is interpreted to be up to 20 km wide and may truncate the south west margin of the Windimurra LIC. Brittle faults with east northeast and northwest strikes splay from the main north - south structures and dislocate

• stratigraphy. The largest spay fault, the Challa Fault, strikes north west - south east across the western

side of the Windimurra Complex, effectively separating the northern part of the intrusion from the remainder of the complex

SLIDE 11

Page | 11 Figure 4 Regional Stratigraphic Scheme from Guilliamse 2014

5.0 Previous Mining and Exploration

5.1 Narndee Project

The Narndee Project comprises the four southern exploration licences covering the parts of the Narndee LIC and surrounding greenstones. The area has been explored for nickel, PGE’s, and copper zinc mineralisation since the early 1960’s to the current time generally as part of larger project areas incorporating the Narndee -Windimurra complexes. A summary of the past exploration work relevant to the current project area is tabulated below and displayed in figure 5 below. Note as some of the early exploration is not in digital format it is not displayed in figure 5

SLIDE 12

Page | 12

Company Period WAMEX No Details BHP/Hunter JV 1986-1899 19438,22872 25669,27394 28724 Held ground on the western side of the current project focusing on the Narndee LIC, Completed gridding, and detailed geological mapping ground magnetic and IP surveying. Work focused on the ultramafic portions of the Narndee LIVC north of the current tenure Durval 1985 15951 Exploring for base metal mineralisation within felsic volcanic sequences in Narndee area Completed field mapping, soil and rock chip sampling, and rock chip sampling identified the North Homestead Gossan but did not complete any drill testing Anglo Australian Resources/ Billiton/Normandy- Poseidon JV / ACM 1985-1992 15951,20263, 22145,26839, 30411,32814, 37038 AAR picked up the ground after Durval withdrew and introduced Normandy to the project. The JV completed rock chip and soil, laterite and stream sediment geochemistry. Inclined RAB drilling on 200m X 20m and 40m grid pattern over the gossan area. Which returned a number of Cu-Zn

• anomalies. In addition, Pulse EM and SIROTEM

EM surveys were completed followed by 14 open percussion holes to test bedrock geochemical anomalies, and 12 RC holes were drilled. Several

• f the holes returned base metal intersections. All

the work was completed on local grids Windimurra Resources Pty Ltd 1997-1998 55389,53843, 50539 Completed general prospecting, soil and BCL sampling and compilation

• f

past work. Systematic soil and BCL sampling was completed in the SW part of the current tenure soil sample collected were

• 2mm/+5mm

fraction and analysed for Au, Cr, Cu, Fe, Ni, Pb, Zn. BCL samples analysed for Au, Ag, Pd, Pt. Work identified several low order BCL gold anomalies not reproduced in the soil sampling Apex /Falconbridge JV 2006-2007 68139 Work completed included stream sediment sampling collecting the magnetic over bank fraction and systematic maglag sampling targeting the Narndee LIC. Samples analysed by partial digest and full aqua regia for Au, Ag, Ars, Bi, Co, Cr, Cu, Fe, Mg, Ni, Pb, Pd, Pt, S, Zn Apex /WMC JV 2002-2005 70455,70457 Work completed included gravity surveying and maglag sampling on a 500m X200 m grid which covered parts of the current E 59/2357 and E 57/2358. Samples were analysed for Ag, As, Au, Bi, Ca, Cd, Co, Cr, Cu, Fe, Mg, Mn, Mo, Ni, Pb, Pt, Pd, Sb, Ti, U, V, Zn. The work identified a weak geochemical anomaly associated with a magnetic high in the northern corner of E59/2357. No further work was completed as BHP took over WMC Maximus Resources Ltd 2006-2016 74285,77525 81908,89970, 93346,95690, 97855,105759, 107352, Work completed included collecting -250micron soil samples and analysing for Ag, As, Cu, Mg, Ni, Pb, Zn. Flying airborne REPTEM survey over entire project area. Identifying anomalies over the Homestead Gossan in Yaloginda Formation. Drilled 21 RC holes testing the airborne EM

SLIDE 13

Page | 13

anomalies and completed 3 lines of ground EM

• surveying. Drillholes were analysed for base

metals as well as whole rock geochemistry. The drillholes intersected broad zones of copper and zinc mineralisation (results discussed elsewhere in report), but unfortunately did not geologically log the holes or complete downhole geophysical logging the drillholes Legendre/Santa Fe Mining Ltd. 2015-2018 Work not released to open file yet Work completed included completing rock chip sampling across exposed ultramafic units identified by the earlier WMC mag lag sampling termed the Yarrambie Prospect. A high-powered EM survey was completed across the magnetic /geochemical anomaly to identify massive sulphide conductors. No conductors were identified, and the tenement surrendered

Table 2 Narndee Project Past Exploration Summary Table

Figure 5 Narndee Project Past Exploration Summary Plan

SLIDE 14

Page | 14

5.2 Killarney Project

There are two historical sets of old gold workings on the tenement, the Killarney and Milgoo. Both

• perated during the early 1900’s and produced small quantities of high-grade gold for quartz veins

(table 3) Name Ore treated tonnes Gold Produced gms Grade g/t Period Killarney 631.95 10,699.8 16.93 1899-1902 Milgoo 224 16,394.5 73.18 1932-1939 Table 3 Killarney Project Recorded Gold Production (source GML’s that Produced gold GSWA production) A summary of the recent exploration work completed on the tenement is provided in the table below

Company Period WAMEX Details Mangore 1960-1962 1883,1885,1886 Photogeology, aeromagnetic surveys magnetite vanadium exploration WMC/ Cheveron 1974-1976 5012,6480 Drilled the Wondinong-Windsor paleochannel for uranium. Drilling on a 1500mX300 m

• pattern. Drilling intersected thin horizons of

anomalous calcrete hosted Uranium but not followed up. Pancontinental Mining / Geopeko 1988--1991 30277,30946,31670, 31896,31896,33611, 33848,33850,33863 Held tenure over the Windimurra complex exploring for PGE mineralisation, completed mapping, stream sediment sampling, soils sampling and tested soils anomalies with RC

• drilling. No significant results.

Yinnex NL 1986-1987 18904,19421,19539 Drill tested the Milgoo workings with RAB drilling Best result 1m at 3.19g/t Au in hole MO1 Australia Resources NL 1987 22340 Killarney Workings, rock chip sampling, 9 RAB drill holes for 724m on two drill fences Hole depths ranged from no geology logs, 5m composite assays, 2 metres comps in zones of qtz veining. Hole depths ranged from 7 to 42metres.Best result 5m at 0.96g/t Au resampled 2m at 1.4g/t in hole K7. Ekomin 1999-2002 65808 Tested the extensions of gold mineralisation at the Killarney workings. Work completed included rock chip sampling and drilling 8 RC holes for 450 m Geological mapping and airborne magnetic survey No significant results Maximus Resources 2008-2014 Multiple Infill drilled WMC drilling on Wondingong paleochannel. Tested samples with scintillometer but did not assay. No significant results Flew area with REPTEM airborne on 400m EW lines. Also completed stream sediment and rock chip sampling for gold nickel and PGE mineralisation

Table 4 Killarney Project Past Exploration Summary Table

SLIDE 15

Page | 15

5.3 Canegrass South Project

The Canegrass South Project comprises a single exploration licences covering the south western part

• f the Windimurra LIC. The area has been explored for nickel, vanadium and PGE’s mineralisation from

the early 1960’s to the current time generally as part of larger project areas incorporating the Narndee

• Windimurra complexes.

A summary of the past exploration work relevant to the current project area is tabulated below and displayed in figure 6 below. Note as some of the early exploration is not in digital format it is not displayed in figure 6

Company Period WAMEX No Details WMC 1980 13981,10483, 14374. Current tenure covered part of WMC’s Canegrass Vanadium Prospect. Work on current tenure included gridding geological mapping and soil sampling analysing the -10+36micron fraction for Cr, Cu, Ni, Pb, Zn. Focus shifted to areas outside current tenure and no further work completed Pancontential Mining Ltd 1987-1991 21081,23847, 28015,28064, 30947,33849 Current tenure covered part of a large regional project over the Windimurra LIC exploring of PGE Mineralisation. Work included geological mapping stream sediment sampling analysing for Pt, and Pd, rock chip sampling analysing for Au, Bi, Co, Cr, Cu, Ni, Pd, Pt. No further work appears to have bene completed within the current tenure Greater Pacific Investments Ltd 1987-1988 21747,23845 Work completed within the current tenure comprised a series of shallow RAB holes drilled along fence line traverses, Hole depths ranged between 4 and 31m. Samples were analysed for Ni, Cr, Cu, Au, Pt and Pd. No significant results were returned Apex /Falconbridge JV 2003-2007 68139 Work completed included stream sediment sampling collecting the magnetic over bank fraction and systematic maglag sampling targeting the Windimurra LIC. Samples analysed by partial digest and full aqua regia for Au, Ag, Ars, Bi, Co, Cr, Cu, Fe, Mg, Ni, Pb, Pd, Pt, S, Zn Maximus 2008 Flew REPTEM airborne survey over the project area on 400m line spacing. Identified a conductor

• n E58/539

Table 5 Canegrass South Project Past Exploration Summary Table

SLIDE 16

Page | 16 Figure 6 Canegrass South Past Exploration Summary Plan Watsons Well North Muleryon Hill The Watsons Well North/Muleryon Hill Project comprised a 37 km strike of prospective greenstone

• n the eastern side of E59/2378. The northern half of the project is largely under Lake Challa. Shallow

trenching testing the ultramafic units Muleryon Hill for Vanadium and Chromium was completed in the 1970 but the location of the trenching is not registered. and more recently several broad spaced lag traverses in the Watsons Well area little exploration work has been completed on the project area

6.0 Project Geology and Mineralisation

6.1 Narndee Project

The Narndee Project covers the southern part of the Narndee LIC, and earlier greenstone sequences and part of the Windimurra complex offset by faulting. The surface geological map of the project area compiled by the GSWA is presented as figure 7. The oldest rocks in the project area belong to Yaloginda Formation of the Norrie Group which is poorly exposed and interpreted to cover the majority of E59/2356. This formation consists of a rhyolite, fine to medium grained felsic volcanoclastic sedimentary rocks, with interbedded units of ferruginous shales and banded iron formation.

SLIDE 17

Page | 17 The contact between the Yaloginda Formation and younger Narndee LIC is not exposed. In places the Yaloginda Formation forms a thin roof pendant over the intrusive complex. However recent drilling

• n the Narndee Prospect by Maximus indicates the felsic sequences could be up to 300 m thick

indicating the relationship may be more complex. The southern part of the project area covers the Lower and Middle Zone of the Narndee LIC. The Middle zone comprises a cyclically layered pyroxenite and gabbro-norite sequence. The Lower Zone, which is a zone approximately 2 kilometres thick, and comprises cyclically layered peridotite, pyroxenite, gabbro-norite and anorthosite. The cyclical nature of these units attests to the periodic introduction of new pulses of less evolved parental magma into the more evolved resident magma within the main chamber. The eastern side of the project area is interpreted to contain a raft of the upper Windimurra LIC that has been offset from the main body by regional scale faulting. Granitic rocks belonging to the Mount Kenneth Group intrude the sequence. Sheet wash, colluvium, and lacustrine sediment cover much of the central part of the project area and practically all the eastern side of the project were outcrop is largely absent. The area has a complex structural history, the dominantly feature is the broad basin like feature filled by the Narndee LIC the contact with the basement granite in the south is well exposed in places and

• sheared. and the contact with the Yaloginda Formation is intrusive, and possibly also sheared.

A series of roughly north south shear zones have been mapped by aeromagnetic’s cutting the area. These are believed to be deep seated, long life structures. If the current interpretation is correct and the eastern side of the project area is off set from the Windimurra LIC the movement has been in excess of 60 km.

SLIDE 18

Page | 18 Figure 7 Narndee Project GSWA Surface Geology6.2 Killarney Project

SLIDE 19

Page | 19 The western side of the tenement moderately well outcropping greenstone sequences whilst the eastern side is predominately covered by a veneer of sand and transported material, and the central part of the tenement is dissected by a regional drainage system The tenement is located over the northern most end of the Windimurra Layered Igneous Complex and surrounding supracrustal greenstones of the Norrie Group. The oldest rocks in the project area below to the Norrie Group. The Yaloginda Formation comprising felsic volcaniclastic rocks, sediments and banded iron formations s interpreted to occur on the eastern side of the tenement and represents a remanent of the greenstone sequence intruded by the Windimurra LIC. The Kantie- Murdana Volcanic Member of the Yaloginda Formation forms a prominent tabletop in the central part of the tenement and probably represents a roof pendant of

• lder supra crustal rocks overlying the younger Windimurra LIC.

Most of the tenement covers rock sequences belonging to the Windimurra LIC. A border / contact zone of Metagabbro occurs on the eastern side of the tenement. Most of the tenement area is interpreted to be olivine gabbro’s and gabbro norites mapped of the lower zone of the LIC. The core

• f the complex has been intruded by granites belong to the Mount Kenneth Suite.

SLIDE 20

Page | 20 Figure 8 Killarney Project Interpreted Geology and Workings

6.2 Canegrass South Project

The eastern side of the Canegrass South Project area covers well exposed Canegrass South Project covers a well exposed sequence of the Middle Zone of the Windimurra LIC. Comprising rhythmically levered sequences of Leucogabbro to anorthosite and gabbronorite with interlayers of Olivine Gabbronorite grading to olivine gabbro and magnetite layers. To the east Upper zone comprising interlayered magnetite and ilmenite bearing magnetite outcrop, but it is mostly outside the current tenure the majority of the west and south west part of the tenement is covered by alluvial wash, and lacustrine lake sediments of the Challa Lake system

SLIDE 21

Page | 21 The regional NNW striking Challa Shear zone is mapped magnetically running through the western side of the tenement under the lake. A series of north south and NNE striking faults have been mapped cutting the Windimurra LIC but no significant movement along the faults has be recorded. Figure 9 Canegrass South GSWA Surface Geology

7.0 Mineralisation and Targets

7.1 Narndee Project

Narndee Copper -Zinc Prospect

The work by Durval and AAR / Normandy as well as Maximus has indicated the copper zinc mineralisation is likely to represent a VMS style base metal deposit within the Yaloginda Formation. Regionally the Murchison district host the world class Golden Grove VMS deposit with the Yalgoo Greenstone belt to the west of Narndee. The Golden Grove Deposit is hosted in rocks older (2950Ma) compared to the Yaloginda Formation at 2800Ma (figure 4) However the Yaloginda Formation hosts both the Yuinmery Cu-Au deposit (1.07Mt at 1.82% Cu and 0.78g/t Au), and Freddie’s Well VMS prospect in Yaloginda Formation sequences in the Youanmi Belt to the east ( Guilliamse 2014). With the Narndee area early exploration for base metals also identified the Twin Tanks, Quandong Well and Yalanga Bore as well as Homestead North /Narndee base metal prosects all within the Yaloginda Formation (figure 7). With the focus on PGE/ NiS mineral exploration, little work has been done recently on these other prospects however the occurrences strongly indicate that the Yaloginda Formation is a fertile VMS formation with the potential to host significant base metal mineralisation.

SLIDE 22

Page | 22 The Narndee Copper – Zinc Prospect represents the most advanced target in the portfolio. The prospect was initially identified in field mapping 1970s as the Homestead North Prospect were anomalous geochemical results were returned from outcropping gossans. Work completed by the AAR/Normandy JV included detailed geological and geochemical mapping as well as drilling over the target area. Results from the drilling included NRC 07, 17 to 21 metres, 4m at 0.28% Cu, including 19 to 21 metres 2m at 0.43% Cu, 0.13%Pb ,0.15% Zn; NRC11 14 to 19 metres 4 metres at 0.27% Cu; and NRC14 56 to 63 m at 0.20% Pb and 0.74% Zn including 2 metres at 1.5% Zn from 56m. This work was completed on local grids and has not been digitally captured. The Maximus airborne REPTEM survey completed in 2007 identified two conductors in the vicinity of the gossan outcrops. The company completed a 30 inclined and vertical RC drill holes up to 300m deep testing the conductors which returned significant copper and zinc mineralisation. A list of all intersections greater than either 0.1% copper or zinc are recorded in table 4. Of the 30 holes drilled

• nly three holes failed to return anomalous copper zinc mineralisation. Unfortunately, Maximus did

not geologically log the holes, preferring to rely on rock geochemistry and limited petrology to identify lithology and no down hole geophysical surveys were completed. Interpretations of the mineralisation released to the ASX by Maximus indicate the mineralisation is within a reasonably flat dipping sequence of metasediments and dolerites. Maximus surrendered the ground as part of a withdrawal from the Narndee area to focus on gold projects in the Eastern Goldfields. An overview drill location plan of the Maximus drilling is presented in figure 10, with detailed drill trace plans for the Narndee North and South targets in figures 11 and 12.

SLIDE 23

Page | 23 Figure 10 Narndee Copper Zinc Prospect Exploration Plan Drilling to date focused on testing two REPTEM anomalies, a mixture of vertical and inclined holes where drilled to a maximum depth of 300m. Drilling undertaken by Anglo Australian Resources and Billiton is located immediately north of the Narndee North drilling, however the work was completed

• n local grids and has not been captured digitally.

SLIDE 24

Page | 24

Drillhole East North RL TD Azi Dip From To Thick Cu % Zn% Pb% Ag ppm NX12-01 615549 6800217 450 213 135

• 60

64 69 84 65 73 91 1 5 7 0.13 0.17 0.28 NX12-02 615545 6799999 450 203 92

• 60

74 78 82 76 79 83 2 1 1 0.18 0.14 0.11 1 1.6 NX12-03 615881 6799999 450 203 268

• 60

NSI NX12-04 616258 6800918 450 206 238

• 60

66 88 96 122 72 91 99 125 7 4 3 3 0.42 0.54 2.4 0.15 0.2 2 NX12-05 616098 6800896 454 203 240

• 60

39 42 53 94 40 45 54 95 1 3 1 1 0.57 0.17 0.1 0.29 0.39 NX12-06 615975 6800753 458 203 250

• 60

65 82 153 157 67 84 155 158 2 2 2 1 0.17 0.24 0.24 0.12 NX12-07 616165 6800780 450 197 240

• 60

62 158 173 178 64 159 174 189 2 1 1 9 0.12 0.14 0.10 0.19 NX12-08 615992 6800577 450 203 244

• 60

76 152 159 78 153 161 2 1 3 0.14 0.2 0.12 0.62 NX12-09 616066 6800514 450 209 235

• 60

193 196 3 0.21 NX12-10 616148 6800877 450 300 240

• 60

58 97 202 61 61 203 4 1 1 0.2 0.6 NX12-11 616329 6800880 445 238 240

• 60

78 80 2 3.81 NX12-12 616032 6801075 451 204 320

• 60

90 92 2 0.2 NX12-13 615919 6800995 459 162 278

• 60

53 61 9 0.44 NX12-14 616051 6800974 455 108

• 90

64 94 65 95 1 1 0.69 0.13 NX12-15 616156 6800976 447 144

• 90

42 53 55 61 66 68 70 105 48 54 57 62 67 69 71 106 6 1 2 1 1 1 1 1 0.15 0.14 0.43 0.26 0.39 0.17 0.93 0.37 NX12-16 616250 6800977 446 150

• 90

62 73 12 0.41 NX12-17 616268 6800781 447 150

• 90

NSI NX12-18 615622 6800066 468 120

• 90

68 69 1 0.17 NX14-19 615751 6799890 465 160

• 90

62 69 9 0.19 NX14-20 615799 6800692 457 210

• 90

71 116 72 117 1 1 0.10 0.27 NX14-21 616178 6800787 452 200

• 90

67 71 1 0.1 NX14-22 616275 6800799 450 200

• 90

NSI NX14-23 616152 6800829 452 200

• 90

58 75 177 62 76 178 5 1 1 0.1 0.2 0.89 NX14-24 616275 6800877 449 150

• 90

65 84 66 85 1 1 0.15 0.17 NX14-25 616089 6800920 448 160

• 90

64 65 1 0.17 0.24 NX14-26 616014 6800924 454 200

• 90

40 49 45 49 5 1 0.23 0.52 0.19 2.3 NX14-27 616121 6800974 451 160

• 90

30 46 52 57 58 74 91 37 47 53 58 59 76 92 7 1 1 1 1 2 1 0.16 0.16 0.11 0.15 0.15 0.14 0.44 3.3 NX14-28 615892 6800966 463 65 260.3

• 60

inc 48 50 59 55 11 5 0.32 0.41 0.25 0.17 3.2 4.7 NX14-29 615896 6800966 463 77 260.3

• 70

50 58 53 63 3 5 0.46 0.51 2.5 3.6 NX14-30 615916 6800991 461 78

• 90

69 71 2 0.29 0.54 3.6

Table 6 Narndee Cu/Zn Prospect Significant Drill Intercepts MXR Drilling

SLIDE 25

Page | 25 Based on work completed by Billiton, mineralisation is within shallow dipping chert/ BIF unit and chlorite sericite schists interpreted to be felsic volcanic’s. The sequence has been intruded gabbro and dolerite from the Narndee Igneous Complex. Base metal mineralisation is within unit of massive to semi massive sulphide lenses that form on the contact of the BIF and felsic schists as well as selvages around the mafic units. Drill results to date suggest a zonation in metals typical of VMS mineralisation. Figure 11 Narndee North Drill Plan

SLIDE 26

Page | 26 Figure 12Narndee South Drill Pan The work program recommended is:

• Compile and field check the historical Durval and AAR JV work including collating past drilling

and geology and registering local grid date into GDA if possible.

• Process the Maximus drill hole geochemistry in IOGAS to attempt to better define the drill

lithologies.

• Detailed interpretation of all available data on the prospect
• Re-enter selected Maximus holes for downhole EM and MMR geophysical surveying - if

possible

• Complete high powered, surface EM and MMR survey across the prospect to define deeper

conductors for testing.

• Diamond drill test conductors

SLIDE 27

Page | 27

Yaloginda Regional Copper -Zinc Target

Regional magnetics indicates there is approximately 14 km strike of the BIF/ chert unit that hosts the Narndee mineralisation within the tenement unit. This stratigraphy has been largely untested as most to the earlier AAR/ Billiton and Maximus work focussing around outcropping gossans. There is approximately 84 sq. km Yaloginda Formation within the project area with prominent magnetic features which may also be prospective BIF targets that remain to be explored and tested. Figure 13 Narndee Project VMS Horison Plan

SLIDE 28

Page | 28

Nickel -Copper PGE Potential

The focus of most of the past exploration work within the Narndee Complex has been on Nickel Copper and PGE mineralisation. Most of the work has been completed in the Upper Ultramafic zone outside the current project area. Within the current project area pyroxenite units within the Middle Zone have potential for mineralisation. Early work by BHP and Hunter involved detailed geological mapping and trenching across the layered stratigraphy and the recent mag lag sampling by Falconbridge, and wide spaced airborne EM surveying by Maximus have failed to define any anomalies which has downgraded the potential.

7.2 Killarney Gold

The Killarney Project has two historical gold working Killarney and Milgoo within the tenement. The Killarney working comprise a series of shallow shafts and pits dug on a set of east west striking steep dipping quartz veins. The veins are situated within the gabbro and troctolites of the Windimurra Layered Intrusive close to the flat lying contact of the Kantie-Murdana Volcanic Member of the Yaloginda Formation that forms a roof pendant over the Windimurra complex. Australis noted in their drilling a lack of alteration around the quartz veining and the discontinuous nature of the veining. There are numerous sets of quartz veining in the area surrounding the workings, however Australis reasoned that because there were no workings in the quartz reefs they were not mineralised. Private syndicate Elkington completed a further 8 RC holes into the workings hole KRC4 55m-56m, 1metre at 1.55g/t Au was the best result The Milgoo workings are located on or close to the contact between the Windimurra LIC and older Norrie Group basalts and felsic volcanics. Regionally this contact has a series of gold workings including Pioneer and Windsor which are to the south of the current tenure. At Milgoo the only work completed to date has been a series of short drill holes in the immediate vicinity of the old workings. The gold mineralisation within the Killarney Project is associated with quartz veining. Two setting appear to be present. At Killarney, mineralisation is associated with gabbro similar to the Paynesville gold camp immediately to the south where there are several clusters of high-grade auriferous quartz reefs that are worked by a number of small syndicates. At Milgoo mineralisation is also within the gabbro units but close to the sheared contact with the Norrie Group. This contact covers an area of 12 kilometres within the project which is largely under cover and not tested. There has been no systematic geochemical sampling for gold mineralisation within the Killarney

• project. Several short drill programs around the existing workings have returned narrow anomalous

intersections. Two potential structural targets have been identified on the Killarney Project figure 12 The contact between the Windimurra LIC and Norrie Group in the north eastern corner of the tenement has had little testing except for a small drill program on the old Milgoo workings. Regionally there is a number of historical workings on or near the contact which is largely undercover. The second target is a demagnetised zone within the gabbro striking north west from Killarney

• workings. Aside for rock chip and limited drilling around the old workings the area is largely untested.

Both targets could be effectively tested by a program of shallow auger sampling

SLIDE 29

Page | 29 Figure 14 Killarney Gold Project Past Work and Targets

7.3 Watsons North Vanadium Prospect

Rock chip and soil sampling by Santa Fe Minerals Ltd (ASX: SFM) has identified highly anomalous Vanadium mineralisation at their Watson Well Prospect (Refer SFM ASX announcement 15 May 2018 Exploration Update- Regional Filed Activities) were rock chip samples up to 1.64% V2O5 were returned The prospect is located on a faulted offset gabbro to gabbronorite unit of the Windimurra LIC immediately south of E59/2358. This unit can be traced with aeromagnetic for approximately 14 km through E59/2358. Previous work has been restricted to soil sampling which only analysed for copper, chromite and nickel. As the area is under a veneer of alluvial cover and lacustrine sediments it was probably not effective.

7.4 Muleryon Hill

The ultramafic sequences on the eastern side of the northern part of the tenement have been trenched testing for chromite and Vanadium. Anomalous vanadium results were returned though the majority of the prospective ground is to the east of the current tenement. The majority of the northern part of the tenement covers the Yaloginda Formation which is prospective for VMS base metal

• mineralisation. The majority of the area is under the Challa Salt Lake making exploration challenging

SLIDE 30

Page | 30 Figure 15 Watsons North Vanadium Target

SLIDE 31

Page | 31

7.4 Canegrass South Project

Within the Canegrass South Project the most advanced target is an airborne EM target defined by the REPTEM survey completed by Maximus. The anomaly is in an area of wash cover over interpreted Middle Zone Windimurra LIC sequence and does not appear to be associated with any cultural features. On the western side of the tenement, aeromagnetic’s suggest that the Upper Zone of the Windimurra LIC underlies the area. This area is under lake sediment however it could have potential for V205 mineralisation Within the outcropping middle zone unit on the eastern side of the tenement, detailed sampling along the magnetite rich layers for Vanadium mineralisation is warranted Figure 16 Canegrass South Exploration Targets

SLIDE 32

Page | 32

References

Berg R, 1990 Narndee Joint Venture Fourth Annual Report (1989), Billiton Australia, WAMEX A30411

• T. J. Ivanic 2016 A Field Guide to the Mafic-Ultramafic Intrusions of the Youanmi Terrane Yilgarn
• Craton. Geological Survey of Western Australia Record 2016/6

Guilliamse JN 2014 Assessing the potential for volcanic associated massive sulphide mineralisation at Weld Range using Golden Grove for Comparison Geological survey of Western Australia Report 141. WAMEX reports as noted in tables 2, 4, 5