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Metallica Minerals Limited METALLICA MINERALS LIMITED A.C.N. 076 696 092 EPM 25779 - “Warrior” ESMERALDA PROJECT ANNUAL REPORT FOR THE FIRST YEAR PERIOD 25/06/2015 to 24/06/2016 TENEMENT HOLDER: TOUCHSTONE RESOURCES PTY LTD MANAGER: Metallica Minerals Ltd AUTHORS: N. FORBES MAP SHEETS: 1: 250 000 Croydon SE54-11 1: 100 000 Prospect 7360 COMMODITIES: GRAPHITE, Au, Cu, Pt, Ti GEOGRAPHIC COORDS: -18° 50'S / 142°12'E TECTONIC: Georgetown Inlier DATE: 24 June 2016 1 Table of Contents Page No. 1. SUMMARY ...................................................................................................... 7 2. INTRODUCTION ............................................................................................. 8 3. LOCATION, ACCESS & SETTING ................................................................. 9 ENVIRONMENTAL CONSIDERATIONS .................................................................... 9 Endangered Regional Ecosystems ............................................................................................ 9 Other Environmentally Sensitive Areas ................................................................................... 11 Cultural Heritage / Aboriginal Cultural Heritage / Heritage Sites ............................................. 11 4. INDUSTRY BACKGROUND AND MARKET ................................................. 13 5. TENURE ....................................................................................................... 14 TENEMENT RESTRICTIONS ................................................................................ 14 RELINQUISHED SUB BLOCKS ............................................................................ 14 NATIVE TITLE .................................................................................................. 14 6. GEOLOGICAL SUMMARY ........................................................................... 16 REGIONAL ....................................................................................................... 16 LOCAL GEOLOGY ............................................................................................ 17 MINERALISATION ............................................................................................. 19 7. PREVIOUS EXPLORATION ......................................................................... 20 SUMMARY ....................................................................................................... 20 8. TECHNICAL SUMMARY OF WORK COMPLETED IN THE FIRST YEAR ... 25 COMPLIANCE STATEMENT FOR PROGRAM OF ACTIVITIES ................................... 25 Approved Work Program for Year 1 ......................................................................................... 25 DATA REVIEW ................................................................................................. 25 HISTORIC PERCUSSION DRILL CHIPS ................................................................ 25 DRILLING ........................................................................................................ 26 Drilling Contractor .................................................................................................................... 26 Field Logistics .......................................................................................................................... 26 Access Tracks & Drill Pad Preparation .................................................................................... 27 Accommodation ....................................................................................................................... 27 Drill Hole Details ....................................................................................................................... 27 Hole WD002 ............................................................................................................................. 28 Hole WD003 ............................................................................................................................. 29 Hole Completion ....................................................................................................................... 30 Core Handling .......................................................................................................................... 31 Core Transport ......................................................................................................................... 31 Core Cutting ............................................................................................................................. 32 CORE LOGGING ............................................................................................... 32 Geological ................................................................................................................................ 32 Magnetic Susceptibility............................................................................................................. 33 Specific Gravity ........................................................................................................................ 33 PETROLOGY .................................................................................................... 33 Generalised Hydrothermal Alteration Assemblage .................................................................. 34 Graphite Mineralisation origin .................................................................................................. 34 Petrologist’s Comments; .......................................................................................................... 35 GEOCHEMISTRY ............................................................................................... 36 PRELIMINARY METALLURGY ............................................................................. 37 2 GEOLOGICAL MODEL ....................................................................................... 38 RESOURCES & RESERVES ............................................................................... 38 ECONOMIC POTENTIAL OF EPM 25779 WARRIOR ............................................. 38 9. PROPOSED EXPLORATION PROGRAMME FOR YEAR 2 ........................ 39 10. REFERENCES .............................................................................................. 40 11. ATTACHMENTS ........................................................................................... 43 ATTACHMENT 1 ............................................................................................... 43 Drill Hole Plan 1:50,000 ........................................................................................................... 43 12. APPENDICES ............................................................................................... 44 APPENDIX 1 .................................................................................................... 45 Warrior Historic Drilling ............................................................................................................ 45 APPENDIX 2 .................................................................................................... 48 Detailed Geological Logs ......................................................................................................... 48 APPENDIX 3 .................................................................................................... 66 Drill Hole Assays ...................................................................................................................... 66 APPENDIX 3A .................................................................................................. 71 WD002 Assay Certificates ....................................................................................................... 71 APPENDIX 3B .................................................................................................. 72 WD003 Assay Certificates ....................................................................................................... 72 APPENDIX 3C .................................................................................................. 73 Assay Data ............................................................................................................................... 73 APPENDIX 4 .................................................................................................... 74 Specific Gravity & Magnetic Susceptibility ............................................................................... 74 APPENDIX 5 .................................................................................................... 79 Preliminary Metallurgical Report .............................................................................................. 79 APPENDIX 6 .................................................................................................... 80 RC002A Drill Chip (Historic) Mineral Liberation Report ........................................................... 80 APPENDIX 7 .................................................................................................... 81 Petrology Report Geochempet Services.................................................................................. 81 APPENDIX 8A .................................................................................................. 82 WD002 Core Tray Photography ............................................................................................... 82 APPENDIX 8B .................................................................................................. 83
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