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

NEMEX Pty Ltd Narndee Regional Polymetallic-Gold Project Geology and Mineral Potential Prepared by James Guy and Associates Pty Ltd January 2020 Page | 1

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 Page | 2

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 Page | 3

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 o 4m at 0.54% Cu o 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 of Layered Intrusion On tested by shallow drilling Area largely under cover Page | 4

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 offer 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 Page | 5

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 35 O and the average winter temperature of around 15 O . 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 Date Sq. km 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 Page | 6

Figure 2 Tenement and Topography Plan Page | 7