Iluka Resources’ Eucla Basin Heavy Mineral Sands Project tenement Group 2 consisted initially ELs 3268, 3283, 3322 and 3330, which spanned the south-eastern portion of the Eucla Basin, extending from 24 km to 140 km north of Ceduna. Regionally, the Eucla Basin extends from Western Australia to South Australia over a distance of approximately 2000 km. There have been five marine incursions into the onshore part of the basin during the last 50 million years, and within it as it exists today, four preserved sets of transgressive high-stand paleo-shorelines are recognised, ranging in age from middle Eocene to Pliocene: based on the work of past mineral explorers, it is known that their beach strandline sediment sequences have potential to host heavy mineral sand (HMS) placer deposits. The eastern side of the Eucla Basin is underlain by Archaean to Middle Proterozoic basement rocks of the Gawler Craton that include granite, gneiss, and mafic/ultramafic intrusive units of the Gawler Range Volcanics. These crystalline rocks, together with those of the Musgrave Block to the north, are thought to have been the main sources of eroding material which after being subjected to Tertiary paralic marine winnowing processes has formed the zircon rich HMS occurrences present in the basin. During Years 1 and 2 of tenure (2004-2006), no field work was carried out on any of Group Two licence areas due to a problem arising with the aboriginal heritage protection access agreement which Iluka had made with the Far West Coast Native Title claimants during Year 1, while access was hampered in Year 2 due to a protracted process for obtaining approval of a Declaration of Environmental Factors (DEF) that would permit entry into the Yumbarra Conservation Park. During Year 3, (2006-2007) a fifth licence, EL 3811, was granted to Iluka on 18/6/2007 and became part of Group 2. Two exploratory drilling programs were conducted on the Group 2 tenements during Year 3. The first of these was located within the “Inla” area of ELs 3268 and 3283, where 128 reverse circulation/aircore (RCA) open vertical holes for 5621 m were drilled using NQ rods, and 437 drill cuttings samples submitted for heavy mineral assay. The second program was managed under the “Kalli” joint venture with Mithril Resources Limited, under which only 5 RCA holes for 70.4 m were drilled, all on EL 3811. The recovered drill cuttings were assayed in-house by Iluka for determining their heavy mineral (HM) content (both grade and composition). Anomalous mineralised intercepts were encountered on EL 3268, e.g. in hole YE1290, 6.3% HM from 22.5 to 24 m. During Year 4 the primary focus of exploration continued to be for HMS, but Iluka also began to investigate the uranium potential of buried palaeochannel sediments within the Group 2 tenements. In December 2007, Iluka relinquished 1662 square km from its total Group 2 tenement acreage to comply with the Group 2 Amalgamated Expenditure Agreement (AEA): this involved making reductions to the size of ELs 3322 and 3330. Exploration drilling in the “Inla” area consisted of putting in 166 RCA drillholes for 8290 m on EL 3268 and 111 RCA holes for 4850 m on EL 3283, with 3531 drill cuttings samples submitted for heavy mineral assay. Exploration on EL 3330 addressed the HM potential of interpreted strandlines lying seaward of the Ooldea Range - this position is marginal to the Nullarbor Limestone, and Iluka surmised that it may therefore have seen some shoreline stabilisation during the last regression. A total of 153 RCA holes were drilled for 3471 m, with 263 drill cuttings samples submitted for assay. On the other Group 2 licence areas, 30 RCA holes were drilled on EL 3811 for 800 m (73 samples assayed) and on EL 3322, 165 RCA holes for 3344 m (213 samples assayed). Uranium exploration was limited to work done on EL 3322, targeting a palaeochannel interpreted from an airborne electromagnetic survey flown by Fugro Airborne Surveys in January 2008 using TEMPEST (with ~1000 line km coverage along flight lines 500 m apart). 31 open vertical RCA holes for 1816 m were drilled, with 93 samples submitted for uranium assaying. No results had been returned by the end of the reporting period. During Year 5, Iluka was granted EL 4228 on 29/7/2009. It had also purchased EL 3746 from Mithril Resources in February 2009, bringing to seven the total number of Group 2 licences. To comply with the Group 2 AEA, a further 1668 square km of ground were relinquished, this time from ELs 3283 and 3322. Work completed during the reporting period included drilling, soil sampling, and profiling of HMS targets with ground penetrating radar (GPR). Exploratory drilling at the Mojave prospect on EL 3268 comprised 429 RCA holes for 17,822.5 m, with 4326 drill cuttings samples submitted for HM analysis. The most significant mineralised intercept obtained was 1.5 m @ 24.4% HM from the depth interval 28.5-30 m in hole YE2542. Further HM exploratory work undertaken on EL 3268 included sampling the near-surface soil along traverses designed to target radiometric anomalies; 104 such samples were submitted for HM assaying. On EL 3268, a Groundradar Ultra-GPR unit was run along two traverses crossing the Mojave and Kalahari HM anomalies respectively, to test the system in the terrain. Initial results were noted as being promising. With the assistance of PACE Initiative Year 5 collaborative drilling subsidy funds granted by the SA Government (as approved drilling project DPY5-42), Iluka drilled 25 RCA open vertical holes for 405 m in the eastern part of EL 3330 and submitted 50 drill cuttings samples for HM assaying. As part of this PACE project, another 2 holes for 31.5 m were drilled on Iluka's adjoining EL 3322, but no HM were encountered there so no samples were submitted for assaying. On ELs 3746 and 3811 two HM targets were investigated, firstly an occurrence of low-grade HM mineralisation identified in 2008, and secondly an interpreted strandline lying between the Dromedary and Gullivers prospects. The work consisted of drilling 40 RCA holes for 1542 m, with 83 drill cuttings samples submitted for HM assaying. No work was done on ELs 3283 and 4288. During Year 6, no field work was done on any of the Group 2 tenements. Renewed EL 4409 (formerly EL 3268) was granted on 24/12/2009, EL 4424 (formerly EL 3283) was granted on 27/01/2010, EL 4545 (formerly EL 3322) was granted on 24/8/2010, and EL 4546 (formerly EL 3330) was also granted on 24/8/2010. During Year 7, over a long period from 1/12/2010 to 6/5/2011, UTS Geophysics flew a low level airborne magnetic and radiometric survey for Iluka over its tenements in the Eucla Basin, including some partial coverage of the Group 2 ELs 4409, 4424, 4546 and 4288. A survey total of 92,405 line km were flown along lines 100 m apart. The radiometric data were used to define shallow sourced anomalies within the cover showing HM potential, to investigate by surface sampling and drill testing. On EL 4409 61 soil samples were collected from such radiometric anomaly locations, but the HM analysis results were still pending at the time of reporting. No on ground work was done to check the corresponding anomalies seen within ELs 4424, 4546 and 4288. During Year 8 a new licence, EL 4962, was granted to Iluka on 18/4/2012. Iluka also relinquished 1838 square km from the Group 2 tenements ELs 4424, 4545, 4546, 4962 and 3811. Drilling undertaken on the remaining Group 2 acreage targeted the paleogeomorphic “Bay of Plenty” region containing the two prospects (Mojave and Kalahari) that display the current northern extent of the Neogene induration of marine units and the potential for preserved still-stand shorelines. 209 RCA holes for 9987.5 m were drilled on EL 4409, with 1181 drill cuttings samples collected for HM analysis; 13 holes for 736 m on EL 4546 (26 samples); and 26 holes for 1720.5 m on EL 4288 (157 samples). Intersections of marine sands made in this region were limited, but nevertheless, in many holes background concentrations of low-grade HM mineralisation were encountered, suggesting that it holds further prospectivity for hosting marine shoreline sequences and possible HM placer deposits. No field work was done on ELs 4424, 4545, 3811 and 4962 during the reporting period. During Year 9, renewed EL 5249 (formerly EL 3811) was granted on 18/6/2012, and two new licences, ELs 5099 and 5100, were both granted on 16/11/2012; these latter tenements lie within both the Yellabinna Regional Reserve and the Yumbarra Conservation Park. Ground was also relinquished from the older Group 2 tenements, with a combined 1498 square km reduction made in the sizes of ELs 4424, 4545 and 4546. New drilling across Group 2 was focused within two broad regions; targeted RCA drilling was performed in the Bay of Plenty region for appraising HM shows identified in previous drilling programs, and in the Yumbarra Conservation Park, holes were drilled both for assessing HM potential and then, by being taken deeper, for testing basement IOCG targets identified in earlier gravity and magnetic surveys. On EL 4409, 140 RCA holes were drilled for 6239.5 m with 1357 samples collected for HM assay, while 4 diamond tailed RC holes were drilled to test a magnetic anomaly thought to be prospective for copper-gold mineralisation. From these last four holes 150 drill cuttings and core samples were collected for multi-element assaying, and selected samples were submitted for petrological studies. Elsewhere, searching for HM, 5 RCA holes for 101 m were drilled on EL 4546, but no samples were collected; while similar work entailed drilling 44 RCA holes for 1536 m on EL 4288, (5 samples collected); 19 holes for 739.5 m on EL 4424 (21 samples); 71 holes for 3010.5 m on EL 5099 (83 samples); and 84 holes for 3284.5 m on EL 5100 (157 samples). No field work was conducted on ELs 4545, 4962 and 5249. During Year 10, renewed EL 5564 (formerly EL 4409) was granted on 24/12/2014, and renewed EL 5501 (formerly EL 4288) was granted on 29/7/2014. A new Group 2 licence, EL 5417, was granted on 23/5/2014. No drilling was done on any of the Group 2 tenements. Within the Yumbarra Conservation Park, a surface geochemical orientation survey was undertaken that consisted of taking soil geochemical and biogeochemical samples for multi-element assaying. The soil samples (117) were collected at 3 sieved grain size fractions: 75 µm, 125 µm and 250 µm. Biogeochemical samples (43) were collected as living tree leaf matter from Eucalyptus socialis (Red Mallee). The intent was to trial these survey methods over a known nickel anomaly. It was shown that the biogeochemical survey could not produce a meaningful reflection of the basement rock composition, nor could it reproduce the nickel anomaly, whereas soil sampling was able to accurately reproduce the nickel anomaly, and its sensitivity was shown to be higher in the assay results obtained from the smaller size sample fractions. A helicopter borne VTEM (Versatile Time Electromagnetic) survey was flown by Geotech Airborne Ltd across several of Iluka’s Eucla Basin Project ground holdings, including over selected parts of the Group 2 tenements ELs 5564 and 5099. A survey total coverage of 5169.8 line km was flown, including 2381.2 line km flown over the Group 2 tenements along flight lines 200 m apart, closing the flight lines in to 100 m apart for infill. A broad scale spectrochemical analysis of historical Iluka bottom-of-hole drill chip samples (183) was conducted using a portable X-ray fluorescence (pXRF) spectrometric instrument, for gaining an indication of the Group 2 tenement region’s prospectivity for non-HM commodities. During Year 11, which was redefined to align with calendar year 2015, the Group 2 tenements then comprised the following seven ELs: 4962, 5099, 5100, 5417, 5501, 5564 and 5686, their combined total area being 5481 square km. All of these tenements except EL 5417 had become subject to a farm-in agreement with Doray Minerals Limited, which was negotiated in November 2014 and came into force after 1/1/2015, granting Doray an 80% interest in the gold rights pertaining to ground therein through the company meeting an expenditure minimum of A$7 million over 6 years. No drilling was undertaken by Iluka during the reporting period. Iluka engaged contractor Atlas Geophysics to acquire two separate UTV borne ground gravity surveys in 2015 over both their Group 1 and Group 2 tenements. A total of 6492 new gravity stations were read, 106 stations being located on the Group 2 tenements (EL 5564 - 83 stations and EL 5417 - 23 stations). [ A detailed survey operations final report that was submitted to DSD (appended to the 2015 annual report for EL 5110) is stored separately within Iluka’s Eucla Basin tenement Group 1 reporting dataset (see Env 12075).] During the reporting period, Doray set out to explore the Eucla Basin Group 1 and Group 2 tenements which previously had not been explored for precious metals. Previously these tenements had strictly been explored for HMS by Iluka Resources, although several of its exploratory holes had penetrated what was described as basement on Iluka’s geological logs. Therefore Doray Minerals undertook geochemical sampling of historical Iluka holes that records indicated had drilled into basement. It collected 3087 samples from 2016 historical holes drilled by Iluka, where 654 of these holes (1020 samples) related to the Group 2 region. Samples of the basement material were selected based on anomalous pathfinder element values that were indicated on pXRF scans, and they were laboratory assayed for a 52-element suite using the aqua regia ICP-OES/MS analytical procedure. A full review of the resulting geochemical data was commissioned from Lulofs Management Services, and a number of potential exploration targets were identified. Damien Lulofs gave Doray many cogent recommendations for ways to improve the conduct of its geochemical exploration across the West Gawler Gold Project tenements. In November-December 2015, along the eastern ends of four traverses located on EL 5564, Doray drilled 30 vertical aircore holes for 2138 m (WGAC0018, 0024, 0025, 0035 – 0038, 0065 – 0087) as part of a wider regional campaign, in this case to follow up only the ‘Target A’ geochemical anomaly identified by the Lulofs consultancy. The intent was to profile surface, palaeosurface and regolith facies geochemical variations as a function of underlying bedrock alteration and mineralisation, in the context of establishing vectors towards a potential Au deposit, as well as to distinguish geological features and stratigraphy of the basement, since details about its lithology in the drilled area were previously unknown. Arising from the initial drillhole findings, it was recommended to Doray managers that more aircore drilling into basement be done in a grid pattern on other geochemical anomalies found from the recent sampling of historic Iluka holes. However, the selection of Iluka’s purported basement-penetrating holes already made seemed to Lulofs to be somewhat random and inadequately filtered as to meeting necessary criteria, so it was recommended that the hole selection process for resampling be improved and a new set of detailed geochemical results assessed, at the same time as further data was being processed and interpreted from the other five initially identified targets ‘B’ to ‘F’ [not located on the Group 2 acreage].