Partial relinquishment report for EL 24040 Frances Creek North

Abstract

Territory Iron Limited (later Territory Resources Limited) applied for tenement EL 24040 on 23rd September 2003. Following native title, landholder notification, and advertising, the tenement was granted on 19th August 2004 for a term of 6 years to 18th August 2010. Reductions for deferral were granted on 1st August 2006 and 6th September 2007. Application for deferral was again made on 19th August 2008, however deferral was not granted so on the 2nd October 2008 38 out of 76 blocks were dropped reducing the area of the tenement from 213.5 km2 to 117.6 km2. The dropped blocks largely covered the granite intrusive of the Cullen Batholith. The sedimentary units of the Mount Partridge Group - the Mundogie Sandstone and Wildman Siltstone Formations were retained for further evaluation with respect to iron and tin / tantalum mineralisation. Activities undertaken by Territory Iron and Territory Resources Limited included: - An aeromagnetic / radiometric survey, contracted to UTS Geophysics between 15th April and 2nd May 2006. Survey lines were flown at a spacing of 50 metres and 25 metres above natural topography; - A multispectral Hymapper survey was flown by Hyvista to identify spectral signatures of iron-bearing minerals over the Mount Partridge Group rocks underlying the tenement; - A full literature search was conducted in the wet season of 2007 - 2008 to identify exploration targets; - A number of field trips were conducted over the tenement, with some rock-chip sampling. Outcrop mineralisation was found to comprise ferruginised quartz veining and iron mineralisation varying between weakly ferruginisation to stronger, but patchy, haematite mineralisation in shale/sandstone. Despite the geology and structural setting of this tenement being similar to that at Frances Creek the overall prospectivity appears lower. Detailed ground mapping is required to progress target generation. The sedimentary rocks of the Mount Partridge Group are seen as being most prospective for iron, tin, and tantalum mineralisation, whereas the granite and leucogranite of the Cullen Batholith is seen as least prospective for mineralisation. As such, the tenement was reduced by relinquishing blocks that either entirely or partially covered these igneous rocks, while blocks covering sedimentary rocks were retained.