IGO Interactive Annual Report 2018

DIRECTORS’ REPORT 30 JUNE 2018 EXPLORATION OVERVIEW The Company is committed to transformational value creation through exploration discovery. During FY18, the Group has continued to build and develop its unique portfolio of highly prospective brownfields opportunities and belt scale greenfield projects. Key work activities completed during this period include: BROWNFIELDS EXPLORATION • Regional brownfields exploration based out of the Tropicana Operation comprised of aircore drilling to the south of the existing mine in E39/1989 and E39/1990, and aircore drilling to the north in E38/3192 and E38/1464 around the Purple Haze prospect. These aircore programs seek to understand basement geology and explore potential mineralised corridors identified in regional structural interpretation work. Results of these programs were being processed at the end of the financial year. Regional exploration drilling was completed at Hidden Dragon, Madras, Seahorse and New Zebra located south of the existing operations during the year, with results from these programs still pending at year-end. • Nova Operation - Underground grade control drilling of the Nova-Bollinger orebodies continued during FY18 and was completed in July 2018 (273 kilometres drilled project to date). Two diamond drill rigs were demobilised during the year, leaving one drill rig to commence underground drilling of exploration targets. This includes drilling of the Phoenix targets in early FY19. A 58 square kilometre, high-resolution 3D seismic survey contracted to HiSeis Pty Ltd was completed in April 2018. This seismic survey is the largest high-resolution 3D hard rock seismic survey ever undertaken in Australia. The processing of this data was completed and delivered to the Company in August 2018. • Long Operation - Reprocessing and reinterpretation of 3D seismic data has resulted in the development of a number of exploration targets at Long. These targets will be tested as part of the planned FY19 exploration program. GREENFIELDS EXPLORATION • Fraser Range - During FY18, the Company continued to consolidate prospective tenement packages over the Fraser Range for total holdings of approximately 15,000 square kilometres. Extensive regional exploration activities continued across the Fraser Range including 25,051 line kilometres of airborne EM surveys by SpectremAir completed in FY18 before moving the SpectremAir plane to the Company’s Lake Mackay project in June 2018. SpectremAir returned to the Fraser Range in August 2018. Aircore drilling and diamond drilling continued in FY18 with further drilling planned for FY19. • Lake Mackay - Extensive regional exploration activities continued at Lake Mackay during FY18. SpectremAir was selected to undertake a large regional airborne EM survey across large parts of the project, and by the end of the financial year approximately half of the survey had been flown. Two of the areas flown were co-funded by the Northern Territory Government under their Geophysics and Drilling Collaborations Program, which formed part of the Creating Opportunities for Resource Exploration initiative that, among other things, aimed to improve the quality and coverage of regional exploration geophysics across prospective areas of the Northern Territory. The airborne EM survey will continue in FY19. During the year, results were received from infill soil sampling of anomalous areas of residual soil surrounding EL24915. Several significant anomalies were confirmed north and northeast of the Grapple prospect in a broad area known as the Blaze prospect. The anomalous metals include copper, gold, cobalt, silver, zinc and lead , which is a similar response to the Grapple Prospect. Elsewhere on the project, prospect-scale geological mapping, soil sampling and rock chip sampling was completed at various existing prospects to better understand the local geology associated with each of the mineralised areas. This included the Grimlock prospect (previously known as Du Faur), where previous rock sampling returned anomalous nickel and cobalt associated with manganese-rich ‘ironstone duricrust’. 34 — IGO ANNUAL REPORT 2018