Final relinquishment report EL 24966 Tennant Creek West for period ending 17 September 2011

Abstract

EL 24966 was granted on 18th September 2006 and was relinquished on 21 September 2011. The tenement comprised 91 graticular blocks (281 sq km). There were no other current mining leases or mineral claims shown within the Licence boundaries. This report details exploration completed by TUC on this tenement since grant. An AAPA certificate was granted in 2009 giving clearance to the main Bluebush target but restricting access to the SE targets. A variation to this certificate was sought and granted for two holes within the RWA for the 2010 field season. Exploration by TUC targeted iron oxide copper gold mineralisation based on the Tennant Creek and Olympic Dam exploration models. Exploration included detailed 5 rock chip samples, a detailed gravity survey (1,993 stations on 500m line by 100m station spacing), a ground magnetic survey (~63 line km at 100 and 200m line spacing), diamond drilling (5 holes for 1935m DDH and 749.5m Precollar RC) and RC drilling (1 hole for 298m) with a total of 1353 drill samples taken. Drilling was completed under a collaboration initiative with the NT government and a joint venture (JV) with Panoramic Resources Limited (ASX: PAN) which granted PAN the right to earn equity in the Bluebush Copper-Gold Project by funding drilling based exploration. A report for Joint Venture partners Panoramic Resources was completed for the 2010 drilling. The conclusion was that: The drilling effectively tested the main geophysical targeting criteria across the 4km strike length of the Bluebush Southeast Prospect. Geophysical anomalies were either explained by dense ultramafic rock types or magnetite mineralisation not associated with significant gold or copper grades. The lack of gold and copper mineralisation over the 4 km strike length would suggest a distinct lack of mineralising events in the region. Given the lack of success it is recommended that the joint venture on this tenement should be put on hold. In addition, further work at Bluebush Southeast would likely require extensive further negotiations with traditional owners with respect to access and it is felt that these additional burdens are prohibitive given the likely exploration success.