Surrender report on EL 25204 Batchelor

Abstract

Territory Resources Limited applied for the Batchelor tenement EL 25204 on 20 February 2006. Following native title, landholder notification, and advertising, the tenement was granted on 11 October 2006 for a term of 6 years, expiring on the 10 October 2012. On 10 October 2008, the second anniversary of the tenement, it was required that the tenement be reduced from 8 to 4 graticular blocks, with an area reduction from 14.3 km2 to 11.44 km2. This was subsequently undertaken by the Company. The relinquished blocks were underlain by rocks of the Whites Formation and Coomalie Dolomites of the Mt Partridge Group, rock types with low prospectivity for iron ore and uranium. The anticipated setting for iron ore deposits in the Batchelor area is that of the Wildman Formation of the Mt Partridge Group. As such, areas thought not to be underlain by rocks of the Wildman Formation were deemed to be of low prospectivity and so were dropped as part of compulsory relinquishment. A second area reduction was made on the 11 October 2009. A further 2 graticular blocks were relinquished, reducing the tenement from 11.44 km2 to 6.623 km2. Tenement blocks on the eastern margin of the tenement were retained into 2010, since this margin was underlain by rocks of the Wildman Formation which is the host rock for the Frances Creek iron ore deposit mineralisation near Pine Creek (to the south) and was deemed prospective for hydrothermal style iron ore deposits. Activities undertaken by Territory Resources Limited during the last three years have indicated the poor prospectivity of defining economic accumulations of iron ore mineralisation in the remaining Batchelor EL 25204 tenure. Rum Jungle Uranium conducted a TEMPEST electromagnetic aerial survey over the tenement in 2009, using Fugro Airborne Surveys Pty Ltd as the service provider. Although this work did outline some small anomalies within EL 25204, the Company decided that it would not drill these. Consequently, Territory Resources Ltd (the tenement holder of EL 25204) and Rum Jungle Uranium Ltd (Joint Venture partner who hold all mineral rights to EL 25204 except iron ore and manganese), have now jointly decided to fully surrender the remaining two (2) graticular blocks of the Batchelor tenement.