Partial relinquishment report for EL 10405 'Mt Skinner', from 8th July 2003 to 7th July 2004

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 10405 'Mt Skinner' forms part of the Mt Solitary Joint Venture Project. The tenement was granted in July 2003 to Sons of Gwalia Ltd, and is 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. A voluntary surrender of 162 blocks was completed after its first year of tenure. This report describes exploration carried out on the surrendered portions of the tenement. 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.