Partial relinquishment report for EL 8434 'Nicker', Yuendumu Joint Venture, 18 April 2000 to 17 April 2005

Abstract

EL 8434 'Nicker' is located approximately 400 kilometres WNW of Alice Springs in the Arunta region. The licence is the subject of a Deed for Exploration between the Central Land Council (CLC) and the Yuendumu Mining Company NL (YMC), signed on 3 August 1996. On 29 September 1999, Tanami Exploration NL (TENL), a wholly owned subsidiary of Tanami Gold NL, entered into a Joint Venture agreement with YMC. EL 8434 was granted in April 2000 and partial relinquishments were completed in April 2002, April 2004 and April 2005. Exploration carried out on the area relinquished in April 2005 is the subject of this report. The majority of the tenement area is covered by aeolian sand and sheetwash sand and silt. Exploration targeted structurally controlled quartz vein-hosted gold mineralisation within folded metasediments, similar style gold mineralisation in the Tanami region. Exploration included surface geochemical sampling and RAB drilling. A summary of all exploration is listed below. Best RAB results of 1 m resampling returned maximum assays of 2 m at 26 ppb Au from 36 m in NKB013, 1 m at 34 ppb Au from 48 m in NKB186 ,and 1 m at 28 ppb Au from 26 m in NKB188. In all cases, elevated gold appears to represent enrichment along the weathering front above quartz-feldspar-biotite gneiss. This region lies along an ENE-WSW trending structural corridor exhibiting fault splays and flexures considered prospective for gold mineralisation. Only rare surface samples returned elevated gold mineralisation in the surrendered part of the tenement, eg 3.55 ppb Au from lag and 17.5 ppb Au from rock chip sampling.