Partial relinquishment report on EL 8434 Nicker, 18 April 2000 to 17 April 2008

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, April 2005, April 2006 and April 2008). Exploration carried out on the area relinquished in April 2008 is the subject of this report. The majority of the tenement area is covered by aeolian sand and sheetwash sand and silt. Exploration has targeted quartz vein-hosted gold mineralisation within folded metasediments, similar to gold mineralisation in the Tanami region. Exploration included surface sampling and regional RAB drilling in 2005 and follow-up in fill RAB drilling testing the Whakatipu prospect area in 2006. The 2005 regional, systematic RAB program detected an anomaly and the 2006 follow up drilling results slightly improved the tenor of it to a maximum of 81ppb Au.