Frances Creek South EL 24045 Partial relinquishment report

Abstract

Territory Iron Limited (later Territory Resources Limited) applied for tenement EL 24045 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. The tenement has recently been renewed for a further two (2) years until 18th August 2012. Reductions for deferral were granted on 1st August 2006, 6th September 2007, and the 28th July 2008. On the 19th August 2009 2 out of 5 blocks were dropped reducing the area of the tenement from 7.91 km2 to 6.93 km2. On 19th August 2010, 1 out of the 3 remaining blocks (SD52 1439M) was dropped reducing the area of the tenement to 3.59km2. This latter partial relinquishment is the subject of this Report. The blocks relinquished in the 1st Area Reduction formed a small part of the land area, and covered the Koolpin Formation, the Allamber Springs Granite, and the Mundogie Formation footwall. None of the relinquished blocks had significant potential for iron ore. 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 number of field trips were conducted over the tenement, however, no outcropping iron mineralisation was observed, and no geological structures likely to host iron mineralisation identified. Outcropping mineralisation was found over a small outcrop of Koolpin Formation, and comprised ferruginised quartz veining and iron mineralisation varying between weakly ferruginisation and rare patches of supergene goethite. The block relinquished in the current 2nd Area reduction is not considered prospective for iron ore mineralisation, as 85% of the block covered the late Allamber Springs Granite, 10% covered the Mundogie Sandstone and only 5% covered the target Wildman Siltstone Formation. As this latter ground had been ground-truthed and found to contain no economic iron ore mineralisation, Territory have decided to surrender this graticular block outright, as part of the renewal process.