ARK MINES LIMITED — M&A Activity 2015

Oct 12, 2015

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Ark Mines t o acquire Glencoe gold project

Sydney, 13 October 2015: The Board of Ark Mines Ltd (ASX: AHK) is plea s ed to advise that it has signed a binding heads of agreement with NT Mining Operations Pty Ltd (formerly Crocodile Gold Australia Ope r ations Pty Ltd) ACN 136 525 990 (Newmarket) for the purpose and with the intention of a cquiring the Glencoe gold project locate d in the Northern Territory (Glencoe Project).

AHK’s Managing Director, R o ger Jackson said: “Ark’s strategy is to asse m ble a portfolio of advanced gold projects ca p able of near term mining and mine th e m as soon as is practicable. Glencoe is an ex c iting addition to our Mt. Porter project an d we intend to keep growing our gold portfolio t h rough development of the prospective Fr a nces Creek project and other potential acquisitions in our region of interest.”

The Glencoe Project compris e s mining lease 29679 and all the informati o n concerning that lease including the results o f extensive drilling, metallurgical and resource definition work, specific details of which are provided below. It is located in the Pine C reek mineral field, approximately 120km SSE of Darwin, in the Northern Territory and lies between the towns of Pine Creek and Adelaide River to the southeast of Darwin (see Fig u re 1 below).

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GLENCO E
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Figure 1: Location of the Glencoe Project

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The material terms of the pr o posed acquisition, which is subject to AHK b eing satisfied with the results of due diligence, are that AHK will pay to Newmarket:

• the sum of $75,000.00 for the Glencoe Project, which sum shall include bonds and other securities alrea d y paid or provided by Newmarket;

• � the sum of $100,000. 0 0 upon the commencement of Glencoe Project mining; and � a royalty of 1% from G lencoe Project gold sales.

Highlights of the Glencoe Pro j ect include:

• 704,000 tonnes @1. 9 g/t Au with 253,000 tonnes @2.2 g/t Au o xide and 451,000 tonnes @ 1.7 g/t Au (see Table A below). This mineral resource estimate complies with recommendatio n s in the Australasian Code for Reporting of Mineral Resources and Ore Reserves (20 0 4) by the Joint Ore Reserves Committee (JORC);

• � metallurgical test work has shown high gravity/cyanidation re c overies of 95.85% (Ammtec 2012). Rea g ent consumptions were relatively low, wit h lime and cyanide consumption of 1.01 a nd 0.77 kg/t, respectively;

• bulk sample has been undertaken and reconcilable;

• � pre strip completed;

• the oxide zone is 30m below surface;

• the deposit is proxim a l to the other AHK tenements and within t r ucking distance of Newmarket’s Union R e ef Gold Mill;

• a strike length of 800 m (from 3,300mE to 4,100mE) with potential for extensions;

• the deposit being located in three mineralized zones, the largest o f which is a round 700m in strike length, 100m down dip and up to 15m in width;

• � sealed road access;

• flat and easily accessi b le terrain; and

• no existing entitleme n ts.

Table A: Glencoe 1.0g Deposit April 2006 Mineral Resource Estima /t Cut-off,High Grade Cut 20g/t te	Table A: Glencoe 1.0g Deposit April 2006 Mineral Resource Estima /t Cut-off,High Grade Cut 20g/t te	Table A: Glencoe 1.0g Deposit April 2006 Mineral Resource Estima /t Cut-off,High Grade Cut 20g/t te	Table A: Glencoe 1.0g Deposit April 2006 Mineral Resource Estima /t Cut-off,High Grade Cut 20g/t te
Zone	Indicated	Inferred	Total
	Tonnes Cu T g t Au /t	Tonnes Cut Au T g/t	Tonnes CutA T g/t u Cut Au Ounces
Oxide Fresh	208,000 2 174,000 2 .1 .0	45,000 2.4 277,000 1.6	253,000 2.2 451,000 1.7 17,700 25,200
Total	382,000 2 .1	322,000 1.7	704,000 1.9 42,900
		Previous Estimates
ERA 1989			730,000 2.3 54,000

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The mineral resource estimate set out in Table “A” was prepared by Res o urce Evaluations Pty Ltd and first announced b y Australasia Gold Limited on 24 July 2006. It has not been updated since to comply wi t h the JORC Code 2012 on the basis that the information contained therein has not materially changed since it was last reported.

The following information w a s obtained from reports by ERA (1988 and 1989) and ORES (2003):

• The lithologies of the project area comprise a sequence of inter-bedded sandstones and siltst o nes of the Mount Bonnie Formation. The lithologies strike approximately East/ W est at Glencoe and form a series of m o derately folded anticlines and synclin e s.

• � Mineralisation within t he Glencoe Project is related to sub-vertical shears proximal to anticlinal crests of folds within the sediments. Certain lithologies (particularly carbonaceous mudst o nes) show pronounced dilation in the fold hinges and give rise to saddle reef m ineralisation extending out from the m a in shear zones. Subsidiary fracture systems and cross trending tensional feature s combined with minor intrusions of lamprophyre dykes produce an irregular network of mineralisation conce n trated in 4 zones and a number of s m aller peripheral occurrences. These z o nes are shown in Figure 2 below.

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Mineralised
Shear
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Figure 2: Anticline in Folded sediments at West Pit

• The main mineralise d shears typically strike East/West with a v ariable dip from vertical to 60° to the south. The thickness of mineralisation v a ries from 2-10m wide and typically fo r ms continuous pods in excess of 100m lo n g. Some of the shears in the South a nd North pits appear to have a North/West orientation of 315° which slightly c onflicts the previous models. This trend requires further validation though pit m apping or drilling if possible.

• Mineralisation in th e shears shows a strong association with quartz veining, brecciation and chlori t isation with gold occurring intergranular to sulphides pyrite, arsenopyrite and ch a lcopyrite. Late stage chlorite alteration with associated shearing and breccia t ion overprint earlier veining and appears t o enhance gold grades.

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• The saddle reef min e ralisation is less continuous than the m a in shears, with mineralisation typica l ly extending for 20-80m along strike a n d only 10-20m laterally. The mineralisation is usually 2-3m thick with local thi c kening of up to 5m. Quartz veining a n d chlorite alteration are also strongly ass o ciated with the mineralisation in the s addle reefs.

• Surface laterite min e ralisation covers much of the area at Gl e ncoe especially above the main shea r s. This mineralisation is typically low gra d e 0.5-2.0g/t and only 1-2m thick.

• Minor basic igneous intrusives occur around the deposit the s e are found as lamprophyre dykes s u b-parallel to the main shears in the regi o n. These dykes exhibit varying deg r ees of micaceous and chloritic alterati o n and contain significant sulphide a n d gold when mineralised.

• Moderate weathering has occurred in the region to oxidise sulph i des in the upper 30m of the deposit.

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Figure 3: Extent of Existing Glencoe Bulk sample and pre strip O pen Pits

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Figure 4: Cross Section Projection of Existing Glencoe Bulk sample and pre s trip Open Pits

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Fi g ure 5: View of West Pit - Looking West

About Ark Mines

AHK is a Sydney based com p any now readying itself for near term gol d production, from assets in the Northern Territ o ry. The company’s aim is to establish itself as a medium level gold producer producing g o ld from tenements in the Northern Te r ritory, developing prospective tenements in th e Northern Territory and New South Wales a n d to acquire other prospective gold projects in A ustralia.

FURTHER INFORMATION: R o ger Jackson, Managing Director, Ark Mines Ltd: +61400 408 550

The information in this announcemen t that relates to Exploration Results, Mineral Resources o r Ore Reserves has been compiled by Roger Jackson BSc, Grad D ip Fin Man, Dip Ed, AICD, who is a Member of The Austr a lasian Institute of Mining and Metallurgy and who has more th a n five years’ experience in the field of activity being rep o rted on. Mr Jackson is a director of the Company. Mr Jackson h as sufficient experience, which is relevant to the style of m ineralisation and type of deposit under consideration and to the activity, which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and O re Reserves’. Mr Jackson consents to the inclusion in the annou n cement of the matters based on his information in the for m and context in which it appears.

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