mmg exploration pty ltd - geoscience.nt.gov.au

MMG Limited Level 23, 28 Freshwater Place, Southbank Victoria 3006 Australia Telephone: +61 3 9288 0888 Facsimile: +61 3 9288 0800 www.mmg.com

ACN 119 136 659

MMG EXPLORATION PTY LTD ACN 119 136 659

ANNUAL TECHNICAL REPORT FOR EL28336 “Inkamulla”

(Reporting Period 04/07/2013 – 03/07/2014)

Project Title Holder: Mithril Resources Ltd Project Operator: MMG Exploration Pty Ltd

Distribution Report No : MMR 6651

1. MMG Exploration Pty Ltd Author : M Sloan

2. Mithril Resources Ltd

3. Department of Mines and Energy Date : 01/09/2014

Keywords

Huckitta, Irindina Basin, Arunta, nickel, copper, PGE, mafic, Aileron Province.

MMG Exploration Pty Ltd Annual Report for the Inkamulla tenement, EL28336.

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TITLE PAGE

Titleholder Mithril Resources Ltd

Operator (if different from above) MMG Exploration Pty Ltd

Tenement Manager/Agent Michelle Stevenson

Titles/Tenements EL28336

Mine/Project Name Huckitta Project

Report title including type of report and reporting period including a date

Annual Technical Report (Reporting Period: 4 July 2013 to 03 July 2014)

Personal author(s) Michael Sloan

Corporate author(s) MMG Exploration Pty Ltd

Company reference number MMR 6651

Target Commodity or Commodities Nickel, Copper, Platinum Group Elements (PGE)

Date of report 01/09/2014

Datum/Zone GDA94 Zone 53

250 K mapsheet Illogwa Creek SG53-15

100 K mapsheet Quartz SF59-51

Contact details / Postal address

Luke Mortimer – Principal Exploration Geologist, MMG Exploration, Level 23 / 28 Freshwater Place Southbank VIC 3006 Australia

Fax (03) 9288 0800

Phone (03) 9288 0888

Email for further technical details [email protected]

Email for expenditure [email protected]


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ABSTRACT This report summarises work completed by MMG Exploration Pty Ltd (MMG) and Mithril Resources Ltd (Mithril) on the Inkamulla Exploration Licence for the year ending 3

rd of July 2014.

The Inkamulla tenement is located approximately 145km northeast of Alice Springs and south of the Plenty Hwy. The tenement forms part of the larger Huckitta Project. Regionally, the Huckitta Project is located in the far eastern Arunta Block on the boundary between the Proterozoic Aileron Province and the Cambro-Ordovician Irindina Basin. The principal exploration target is mafic-ultramafic hosted Ni-Cu-PGE sulphide deposits. On the 31

st of October 2013, MMG exercised its Option to form a joint venture with Mithril in regards to

EL28336. Work completed on EL28336 during the reporting period includes;

An MMG sponsored honours project which involved re-analysing existing rock-pulps for trace element geochemistry.

Geoscientific desktop studies

MMG Australia Limited Annual Report for the Inkamulla tenement, EL28336.

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TABLE OF CONTENTS

TITLE PAGE ................................................................................................................................... I

ABSTRACT .................................................................................................................................... II

1. BACKGROUND ......................................................................................................................... 3

1.1 INTRODUCTION 3

1.2 LOCATION AND ACCESS 3

1.3 TENURE 3

1.4 REGIONAL GEOLOGY 4

1.5 LOCAL GEOLOGY 4

1.6 EXPLORATION RATIONALE 4

1.7 NATIVE TITLE 4

1.8 LANDOWNERS 5

2. EXPLORATION HISTORY ......................................................................................................... 5

2.1 PRE MMG EXPLORATION COMPLETED 5

2.2 MMG EXPLORATION COMPLETED 5

3. WORK COMPLETED DURING THE REPORTING PERIOD ..................................................... 5

3.1 LITHOGEOCHEMISTRY 5

4. EXPENDITURE .......................................................................................................................... 6

5. PLANNED WORK...................................................................................................................... 6

6. REFERENCES ........................................................................................................................... 6

7. COPYRIGHT STATEMENT ....................................................................................................... 7

LIST OF FIGURES Figure 1 Location of the Inkamulla Exploration Licence (EL28336). Figure 2 Location of re-analysed surface grab samples ‘R237528 - R237530’

LIST OF TABLES Table 1 Inkamulla tenement tenure details Table 2 Proposed Exploration Expenditure for EL28336

MAP SHEETS 1:250 000 Illogwa Creek SG53-15 1:100 000 Quartz SF59-51


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APPENDICES Appendix 1: Surface sample locations and geochemical data

Digital file: EL28336_2014_A_02_SurfaceGeochem.txt

Appendix 2: File listing information

Digital file: EL28336_2014_A_03_FileListing.txt

MMG Australia Limited Annual Report for the Inkamulla tenement, EL28336.

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1. BACKGROUND

1.1 INTRODUCTION

This report summarises work completed on the Inkamulla Exploration Licence (EL28336) by MMG Exploration Pty Ltd (MMG) and Mithril Resources Ltd (Mithril) for the year ending 3

rd July 2014. On the 31

st

Oct 2013, MMG exercised its Option to form a joint venture with Mithril regarding EL28336, along with a number of other 100% Mithril owned Huckitta tenements. The Inkamulla tenement forms part of a larger package of tenements that are referred to as the Huckitta Project. MMG’s involvement in the Huckitta Project involves exploring for mafic-ultramafic hosted Ni-Cu-PGE sulphide deposits. The Lloyd Gabbro Suite (409Ma) is considered most prospective for this style of mineralisation based on the occurrence of Ni-Cu sulphides within the Blackadder and Baldrick mafic-ultramafic intrusions.

1.2 LOCATION AND ACCESS

The Inkamulla tenement is located approximately 145 km northeast of Alice Springs. The project area is accessible from Alice Springs via the Stuart and Plenty Highways (Figure 1). Station tracks provide access to the area with the remainder accessed by four-wheel drive or on foot. Regionally, the Huckitta Project is located in the far eastern Arunta Block on the boundary between the outcropping Proterozoic Aileron Province and the undercover Cambro-Ordovician Irindina Basin. The project area is located on the Illogwa Creek SG53-15 1:250 000 scale map sheet and the Quartz SF59-51 1:100,000 scale map sheet.

Figure 1 Location and access route to Inkamulla (EL28336)

1.3 TENURE

Leasing details for EL28336 are detailed in Table 1 below. Mithril was granted EL28336 on the 4

th of July

2011 for a six years period. On the 26th September 2011 MMG entered into an Option to Joint Venture

agreement with Mithril regarding EL28336 (Inkamulla) and several other 100% Mithril owned Huckitta tenements. On the 31

st October 2013 MMG exercised its Option to form an unincorporated joint venture.


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Table 1 EL 28336 (Inkamulla) tenure

Tenement Holder No. sub

Blocks Date

Granted Expiry Date

EL28336 Mithril

Resources Ltd. (100%)

9 4/07/2011 3/07/2017

1.4 REGIONAL GEOLOGY

The Inkamulla tenement (EL28336) is situated over the Entia Dome in the eastern limits of the Palaeoproterozoic Aileron Province and proximal to the boundary of the Cambro-Ordovician Irindina Basin.

Regionally the geology is dominated by the Entia Gneiss Complex and the Strangways Metamorphic Complex. The Entia Gneiss Complex includes a package of Palaeoproterozoic meta-igneous rocks that vary in composition from granite to granodiorite, diorite, tonalite and gabbro along with subordinate metasedimentary rocks. The Strangways Metamorphic Complex consists of a mix of felsic and mafic gneiss, metavolcanics and metapelites.

The adjacent Irindina Province is comprised of the Harts Range Group, a volcanosedimentary succession that was metamorphosed to amphibolite-granulite facies during the Larapinta Event (475-460 Ma). Lithostratigraphical and geochronological data indicate that the Harts Range Group correlates with Neoproterozoic to Cambrian sediments of the adjacent Amadeus and Georgina Basins. It is therefore likely that the Harts Range Group was deposited in a basin contiguous with, and possibly linking, the Amadeus and Georgina Basins. As the Harts Range Group underwent high grade metamorphism, sedimentation continued on unabated in the Amadeus and Georgina Basins. This implies that the Larapinta Event only affected the Irindina Province.

Structural and lithological evidence suggest that the Larapinta Event occurred within an extensional regime and may have resulted in deep rifting and sedimentary burial depths of up to 30km, accounting for the high metamorphic facies observed. Processes such as mantle upwelling and magmatism may have also influenced the metamorphic grades.

The Harts Range Group was inverted back to its near-surface position during the Alice Springs Orogeny (450-300 Ma). During this time numerous mafic-ultramafic conduit and sill-like intrusions are thought to have been intruded. This collective of mafic-ultramafic intrusions has been termed the Lloyd Gabbro Suite (409Ma) and are considered prospective for Ni-Cu-PGE mineralisation.

1.5 LOCAL GEOLOGY

EL28336 contains approximately 50% outcrop/subcrop with recent cover from colluvial sand and gravel. Where outcrop is available the dominant stratigraphic units is the Inkamulla Granodiorite and metahornblendite/meta-ultramafic rocks.

The area has been subjected to intense deformation and metamorphism (as outlined in regional geology above).

1.6 EXPLORATION RATIONALE

The exploration target for MMG is Ni-Cu-PGE mineralisation hosted within mafic-ultramafic intrusions. Evidence of such processes has been recorded locally within the “Blackadder” and “Baldrick” gabbroic intrusions.

1.7 NATIVE TITLE

At the time of writing there are no known registered Native Title claims over EL28336.


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1.8 LANDOWNERS

Landowners over whom the granted exploration licence lies is the Ambalindum Station and the Mount Riddock Station (Perpetual Pastoral Lease)

2. EXPLORATION HISTORY

2.1 PRE MMG EXPLORATION COMPLETED

Few companies and individuals have explored in the general area covered by EL28336 prior to 2011.

Work completed during the 2011-2012 reporting period included:

Historical data compilation

53 rock chip samples collected

VTEM Survey: 130 line kilometres of data collected

IP/Resistivity Survey: 1.05 km line of data collected

2.2 MMG EXPLORATION COMPLETED

2012-2013 - Surface Sampling

One rockchip and 12 stream sediment samples were collected over the tenement by MMG. The sampling program was conducted using a helicopter during mid to late September 2012. Catchments within the tenement were identified and the survey was designed to target as many of these catchments as possible.

3. WORK COMPLETED DURING THE REPORTING PERIOD

3.1 LITHOGEOCHEMISTRY

During this reporting period MMG sponsored a Monash University honours project. The project involved re-assaying existing surface grab samples for trace element geochemistry. The results of the re-assayed samples were received during last year’s reporting period, however, the data was not available for reporting at that time. As such the results are presented in this year’s annual report. Three samples (R237528, R237529 and R237530) were selected for analysis from EL28336 (Figure 2). These samples were initially collected and sampled by Mithril for a smaller elemental suite. The three sample pulps were re-analysed using inductively coupled plasma-atomic emission spectrometry (ICP-AES) to determine the concentrations of Cu, Pb, Zn, Ag, As, Bi, Cd, Co, Ba, Be, Ce, Cs, Ga, Ge, Hg, Hf, In, La, Li, Mo, Nb, Ni, Rb, Re, S, Sb, Sc, Se, Sn, Sr, Ta, Te, Th, Tl, V, W, U and Y. Precious metal (Pt, Pd, Au) concentrations were calculated by using lead collection fire assay and ICP-MS analysis (Wallace 2013). The results were used to aid in the discrimination of mafic lithologies observed within the Irindina Basin and Aileron Province. Desktop based studies and data collation was also completed with reference to the broader Huckitta Project area during the reporting period.


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Figure 2. Location of samples R237528 to R237530 which were re-analysed for trace element geochemistry

4. EXPENDITURE For the current reporting period, the total claimed expenditure for EL28336 was $21,970.69

5. PLANNED WORK During the 2014-15 reporting period, MMG propose to undertake geoscientific desktop studies, field reconnaissance, mapping, rock-chip sampling and geochemical analysis.

Table 2. Proposed Exploration Expenditure for EL28336

Exploration Category Expenditure

AUS $

Basic field reconnaissance/mapping/rock chip sampling $10,000

Geochemical analysis - (e.g. Rock, stream and/or soil) $5,000

Overheads - Office administration and sundry. Geoscientific desktop studies including exploration planning and conceptual targeting studies,

$1,750

Total $16,750

6. REFERENCES

Wallace, M 2013, ‘Lithogeochemical evaluation of the petrogenesis and Ni-Cu-PGE magmatic sulphide prospectivity of mafic ultramafic suites within the Irindina and Aileron Provinces, Northern Territory, Australia’, Honours Thesis, Monash University, Victoria.


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7. COPYRIGHT STATEMENT This document and its content are the copyright of MMG Australia Limited (MMG). The document has been written by Michael Sloan for submission to the Northern Territory Department of Resources as part of the tenement reporting requirements as per Regulation 78 of the Mineral Titles Act. Any information included in the report that originates from historical reports or other sources is listed in the “References” section at the end of the document. This report may be released to open file as per Regulation 125(3)(a).

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