Partial relinquishment report for the first compulsory relinquishment 16 December 2009

Abstract

This report details exploration activities conducted by Territory Resources Limited between 16 December 2005 and 16 December 2009 on tenement EL 24468 prior to partial relinquishment. The tenement consisted of 34 sub-blocks (107.1 km2) of which 17 sub-blocks (56.93km2) were relinquished leaving a tenement area of 17 sub-blocks (50.17 km2). During the 4 year exploration period the following work was carried out on the tenement. Year 1 Reconnaissance work for iron mineralisation was carried out over the Koolpin Formation, investigating partially mineralised banded iron formations; Aeromagnetic and radiometric surveys were completed over the Mount Bundy / Mount Goyder project group of tenements; 16 grab samples were collected and assayed for iron mineralisation; One reverse circulation drill hole (MBRC018) was completed for 73 metres. Year 2 Reconnaissance traverse of the Wildman Formation, assessing the potential for iron mineralisation; Ground scintillometer readings over an anomalous uranium anomaly identified in the Year 1 aero-radiometric survey. Year 3 During the reporting period Territory Resources entered a JV agreement with Rum Jungle Uranium, giving Rum Jungle uranium exploration rights over EL 24468 and the other Mount Bundy / Mount Goyder tenements; 33 rock chips were collected for uranium and base metal assays; TEMPEST airborne EM survey flown, with 157 km of line completed at 333 metre line spacing. Year 4 One reverse circulation hole completed by Rum Jungle Uranium for 132 metres (MGRC047); Heli-VTEM survey flown at 200 metre line spacing for 93.8 line km; TEMPEST data flown during 2008 interpreted. The iron enrichments in the Koolpin Formation occur as thin strata bound beds and as pseudo gossans in faults and fold culminations. They show no potential for iron ore due to their small size and typical low grade. The evidence for base metal mineralisation beneath the pseudo gossans is inconclusive and further limited work is warranted to complete evaluation of the tenement for base metals. The relinquished blocks fall on the least prospective ground, comprised of Kooplin Formation, Gerowie Tuff, and unmineralised Wildman Siltstone.