First Annual Report EL 23888 Stafford Reynolds Range Project for year ending 11 August 2005

Abstract

Widespread gold anomalism was identified within greenschist-facies metasediments along the eastern side of the Reynolds Range in the early 1990's. Gold is hosted by sulphidic quartz veins and has been interpreted to broadly correlate with gold mineralisation in the Tanami region. Tanami Gold NL (TGNL), a publicly listed company, acquired the tenure over this area with an option agreement with Newmont Australia Pty Ltd (Newmont) for EL 23888 on 28 May 2004. EL 23888 was granted to Newmont on 12 August 2004. Exploration during the first year of tenure was carried out by Tanami Exploration NL (TENL), a wholly owned subsidiary of TGNL, as part of TENL's Reynolds Range Project. The Reynolds Range Project is located approximately 225 kilometres north-northeast of Alice Springs, in the central part of the Aileron Province of the Arunta region. EL 23888 is within the Napperby 1:250,000 sheet. Exploration consisted of regional desktop studies, including geophysical and geological interpretations and transfer and validation of historic data supplied by Newmont and from open-file reports. Diamond drillcore was also retrieved from Newmont's Ivy camp and re-logged. A number of brief reconnaissance trips were undertaken through the area, but the absence of comprehensive work area clearances limited these trips to logistical planning. The final trip included collecting 24 rock chip samples. An Indigenous Land Use Agreement (ILUA) between the Central Land Council (CLC), on behalf of the traditional owners, and TGNL has been negotiated for the Reynolds Range Project. The ILUA has been lodged with the National Native Title Tribunal. Work area clearances covering EL 23888 have been divided into two phases with the first phase recently completed allowing access to the northern part of the tenement. The second phase of the clearance is expected to be completed soon.