First annual report for EL 9887 and EL 10405, year ending 7 July 2004, Mount Solitary JV

Abstract

Tanami Gold NL identified the potential for Palaeoproterozoic-hosted gold mineralisation and Neoproterozoic-hosted base metals mineralisation in the area of the Mt Solitary Joint Venture Project in Central Australia. EL 9887 'Highway' and EL 10405 'Mt Skinner' form part of the Mt Solitary Joint Venture Project. Both tenements were granted in July 2003 to Sons of Gwalia Ltd, and are explored by Tanami Exploration NL (TENL) under a Heads of Agreement, dated 23 December 1999. TENL is a wholly owned subsidiary of Tanami Gold NL (TGNL), a publicly listed company. The tenements cover an area of 1,297 km2. This report describes exploration carried out on both tenements since their grant date to 7 July 2004. The Mt Solitary Joint Venture Project lies in Central Australia at the boundary of the Arunta Region and the Southern Georgina Basin approximately 180 kilometres north of Alice Springs. Access is provided via the Stuart Highway, which crosses the Project area. Exploration on EL 10405 consisted of regional reconnaissance including rock chip sampling, targeting a red bed sequence from the Neoproterozoic southern Georgina Basin for epigenetic stratabound base metal mineralisation and the Tops Member red beds in particular for stratiform Cu mineralisation. Rock chip sampling returned best assay results of approximately 0.5% Cu from a malachite-stained reduced horizon at the Mt Skinner Prospect and 0.16% Cu from a malachite mineralised quartz barite outcrop near the basement contact and associated with a major Trans-Tanami structure in the southwestern portion of the tenement. Reconnaissance of EL 9887 has confirmed 100% regolith cover. Magnetic targets require further modelling to assess underlying geology and the requirement for drill testing.