Partial relinquishment report for EL 10405 'Mount Skinner' and EL 9887 'Highway', from 8 July 2003 to 7 July 2006

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. The 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. Partial relinquishments were completed for both tenements in 2006 after three years of tenure. This report describes exploration carried out on the surrendered portions of EL 9887 and EL 10405 from 8 July 2003 to 7 July 2006. 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 and Sandover Highways, which cross the Project areas. Exploration on EL's 9887 and 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, in particular the Tops Member red beds, for stratiform Cu mineralisation. A total of 13 rock chip samples were taken from the surrendered area of EL 10405, which returned best assay results of 0.16% copper and 0.1ppm silver from a malachite mineralised quartz vein breccia (HBK122) and 276ppm Cu, 142ppm Zn and 0.2ppm Ag from a haematite cemented, brecciated, finely crystalline quartzite on the margin of a pegmatite (HBK123). No rock chip sampling was carried out on the surrendered portions of EL 9887.