Rio Tinto Exploration Pty. Limited · Rio Tinto Exploration Confidential Information - unauthorised use prohibited Annual Report for the Period 22 April 2010 to 21 April 2016, EL23565

This report and its contents are strictly confidential. All rights to the report and its contents, including, without limitation, rights to confidential information and copyright in all works whether at common law or statute (including photographs, diagrams, charts, maps and graphs) comprised in the report, remain the property of Rio Tinto Exploration Pty. Limited. No part of this report or the information contained in it may be disclosed to any person without the consent of Rio Tinto Exploration Pty. Limited. No part of this report, or the information contained in it, may be disclosed, reproduced (including being stored in any form), transmitted, published or used for any purpose without the prior written consent of Rio Tinto Exploration Pty. Limited. Rio Tinto Exploration Pty Limited does authorise the department to copy and distribute the report and associated data as provided for in Regulation 126(3)(a).

Rio Tinto Exploration Pty. Limited ABN 76 000 057 125 / ACN 000 057 125

A member of the Rio Tinto Group

Partial Relinquishment Report For the Period 22 April 2010 to 21 April 2016

EL23565 Zamia Creek, SD5307 Blue Mud Bay

Northern Territory

Tenement Holder: Rio Tinto Exploration Pty Limited Operator: DPG Resources Australia Pty Ltd Date: 17 June 2016 Author: G. Duncan (DPG Resources Australia Pty Ltd) Submitted: R.Bird Distribution: Department of Mines and Energy RTX Perth Information Centre

Rio Tinto Exploration Confidential Information - unauthorised use prohibited

Annual Report for the Period 22 April 2010 to 21 April 2016, EL23565 Zamia Creek, SD5307 Blue Mud Bay, Northern Territory.

Report No. Page ii

LIST OF CONTENTS

LIST OF CONTENTS ................................................................................................................. ii

LIST OF TABLES ....................................................................................................................... iii

LIST OF Figures ......................................................................................................................... iii

1. SUMMARY ........................................................................................................................ 1

2. CONCLUSIONS AND RECOMMENDATIONS .................................................................. 1

3 . Introduction ..................................................................................................................... 1

3.1 Location ............................................................................................................................ 1

3.2 Title History ................................................................................................................. 3

Map showing area relinquished with red X. ................................................................................ 3

4. GEOLOGY ........................................................................................................................ 4

5. GEOPHYSICS .................................................................................................................. 4

6. PREVIOUS EXPLORATION ............................................................................................. 4

7. EXPLORATION COMPLETED DURING REPORTING PERIOD ...................................... 5

8. ENVIRONMENT ................................................................................................................ 5

9. EXPLORATION EXPENDITURE ....................................................................................... 5

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

LOCALITY .................................................................................................................................. 6

KEYWORDS .............................................................................................................................. 6



Report No. Page iii

LIST OF TABLES

Table 1: Tenement Details ......................................................................................................... 4

LIST OF FIGURES

Fig No. Title

1

2

Tenement Location Plan

Area relinquished



Report No. Page 1

1. SUMMARY

EL 23565 was granted to Rio Tinto Exploration Pty Limited (RTX) on 22 April 2010 over an area

of 38 blocks and up until the farm out to DPG Resources Australia Pty Limited (DPG) on 23

January 2014, no work was undertaken by RTX on the 19 blocks relinquished on 21 April 2016.

Therefore this report documents work undertaken by DPG on EL 23565 over the area

comprising the 19 blocks relinquished, for the period since they took over as operator from 23

January 2014 to 21 April 2016.

David Jones commented on the prospectivity of the tenement in the 43-101 for GPM Metals Inc

and subsequently Dr Mark Hinman has compiled a tectono stratigraphic framework for

exploration for SEDEX deposits in the district including this tenement.

Field work over the 19 blocks has not been completed to date but is planned over the remaining

blocks within the 2016 to 2017 felid season.

2. CONCLUSIONS AND RECOMMENDATIONS

The geological review concluded that the area relinquished did not warrant further exploration

but that the remaining blocks within EL 23565 contain equivalent stratigraphy to the HYC

Deposit and merits exploration on that basis. No prior field work has been undertaken to

indicate mineralisation.

3 . INTRODUCTION

3.1 Location

The tenement area is located approximately 80km north-west of Numbulwar in south east

Arnhem Land.



Report No. Page 2

Figure 1. Location.



Report No. Page 3

3.2 Title History

EL 23565 was applied for on 3 April 2002. Partial consent of the application area resulted in the

granting of EL 23565 to Rio Tinto Exploration Pty Limited (RTX) on 22 April 2010. The areas of

non-consent, ELA 27919 and ELA 27920, are in moratorium.

A relinquishment of 50% (19 blocks) was made at the end of year six (period ended 21April

2016).

Block

Number Retained Blocks

Relinquished

Blocks

1550 v w

1622 cde ghjk mnop rstu ab f l q

1623 a f l q bcd ghj mno rst

Total 19 sub blocks 19 sub blocks

Map showing area relinquished with red X.



Report No. Page 4

Fig 2. Relinquishment.

Table 1: Tenement Details

Tenement No.

Tenement Name

Ownership Application Date

Grant Date

Blocks Applied

Blocks Granted

Blocks Relinquished

EL23565 Zamia Creek

Rio Tinto Exploration Pty Limited

03/04/2002 22/4/2010 62 38 19

4. GEOLOGY

The tenement area covers ground surrounding the Parsons Range Fault. Dominant geological

units in the area are Mesoproterozoic McArthur Group siltstones, sandstones and dolomites and

Neoproterozoic Roper Group sandstones and conglomerates (Haines et al, 1999). The

tenement is considered prospective for sedex-style base metal mineralisation, similar to that at

McArthur River (HYC) lead-zinc deposit located approximately 300 km to the south.

5. GEOPHYSICS

The project area is covered by regional gravity and by airborne magnetic and radiometric data.

The aeromagnetic data are from the Mitchell Ranges 1990 and Marumba 1988 Surveys. These

surveys had east west oriented flight lines with a line spacing of 500 metres and a mean survey

elevation of 100 metres.

6. PREVIOUS EXPLORATION

Two exploration licences have been held over the tenement area. Both of these licences

existed prior to the grant of the ALRA in 1975. Authority to Prospect (AP) 1138 was granted to

BHP Minerals in 1964 and was relinquished in 1972, however it only covered the tenement area

between 1964 and 1967. No exploration from the tenement area was reported by BHP.

AP 1967 was held over the tenement area between 1969 and 1970 by Noranda Australia.

Again no exploration was reported. Limited exploration comprised an airborne spectrometer

survey and ground follow up of five anomalies. No economic uranium mineralisation was

intersected. Anomalous radioactivity is due to thorium concentrations with minor associated

uranium.



Report No. Page 5

7. EXPLORATION COMPLETED DURING REPORTING PERIOD

Exploration work completed over the 19 blocks was limited to:

• A further review by Dr Mark Hinman in conjunction with regional targeting.

8. ENVIRONMENT

No Ground disturbing work conducted during the period over the reduced area of 19 blocks.

9. EXPLORATION EXPENDITURE

Not required for a relinquishment report. Expenditure reports have been submitted each year

outlining expenditure over the whole area of EL 23565 since grant.



Report No. Page 6

REFERENCES

Haines, P W et al., 1:250 000 Geological Map Series Explanatory Notes. Blue Mud Bay 1999 SD53-7 Northern Territory Geological Survey.

LOCALITY

Blue Mud Bay SD 5307 1:250 000

KEYWORDS

Zamia Creek, Blue Mud Bay, base metals,

Rio Tinto Exploration Pty. Limited · Rio Tinto Exploration Confidential Information - unauthorised use prohibited Annual Report for the Period 22 April 2010 to 21 April 2016, EL23565

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