Geophysics and drilling collaborations round 2 drilling results, EL 24966

Abstract

Territory Uranium Company (TUC) conducted a drill program exploring for possible Tennant Creek style high grade Iron Oxide Copper-Gold (IOCG) style mineralisation at its Bluebush project. The program was undertaken with joint venture partner Panoramic Resources, and in collaboration with the Northern Territory Government's 'Bringing Forward Discovery' initiative, as one of the 2009/10 Geophysics and Drilling Collaboration projects. Drilling was performed in November-December 2009, during the third year of tenure on EL24966, which covers an area mapped as Palaeoproterozoic granites and sediments under Quaternary and Cretaceous cover. The drilling consisted of 3 diamond holes for 1,761.8m (with 387m of RC pre-collars) and 538 samples. Drilling targeted 3 selected geophysical models between the Tennant Creek and Rover Fields in an attempt to discover Tennant Creek Style high grade IOCG deposits occurring in association with ironstones. The first model targeted was a gravity anomaly interpreted to be within an S-Shaped Shear. The second model was a magnetic anomaly in a regional setting analogous to the Rover Field. The third model was the main Bluebush regional bouger and residual gravity anomaly with similarities to Olympic Dam. Despite economic mineralisation not being detected TUC believes that the drilling program has tested and challenged the geophysical and geological models originally proposed and has led to a re-think of the exploration model for the Bluebush region. Results from the drill program have shown the Cretaceous cover to be much shallower than previously believed. The main rock sequence intersected in the first hole is interpreted to be part of the Flynn Subgroup. However the presence of high magnesian basalts may indicate older rocks (Archaean) than originally thought to exist in the Tennant Creek and Rover Fields. A major S-Shaped Shear was confirmed by drilling and may have brought lower sequences of basement rocks closer to the surface. The alteration and magnetite stringers detected in the second hole could indicate the proximity of a major alteration and mineralised zone (similar alteration exists below the Juno Deposit in the Tennant Creek field). The cause of the regional bouger and residual gravity anomaly at Bluebush remains uncertain. With these points in mind TUC will continue to explore the Bluebush Region for IOCG and other style deposits under the ongoing joint venture with Panoramic Resources.