Annual report on AN 25438 Mt Bundey, for the period 5 March 2007 to 4 March 2008

Abstract

This report details exploration activities conducted by Territory Iron Limited for Mt Bundey style haematite/magnetite mineralisation within AN25438 during Year 1 ending 4th July 2008. Exploration activities during the reporting year comprised: - Preparation of access tracks and 7 drill pads; - Drilling of 7 Reverse Circulation holes (MBRC036 to MBRC042) for a total of 640 metres. Drilling focussed on assessing mineralisation around the previously mined Mount Bundy open cut. Two holes returned significant skarn-type magnetite mineralisation within a granite host, immediately east and west of the current Mount Bundy open pit excavation. MBRC039 assayed 19 metres of good magnetite grades, and MBRC041 assayed 50 metres of good magnetite. These are lateral extensions of the Pritchard's Lode that was mined from 1968 to 1972. Significantly, MBRC041 showed mineralisation from surface. Iron grades of up to 67.3% Fe were recorded. Both holes also showed relatively high Sulphur values below the water table, ranging from 2 to 5% Sulphur. The sulphur is associated with iron pyrite.