EL 24468 Mt Goyder South, Annual report for the period 16 December 2005 to 15 December 2006

Abstract

This report details exploration activities conducted by Territory Iron Limited for iron ore mineralisation within EL 24468 during Year 1 ending 15th December 2006. Exploration comprised: investigation of the iron ore potential of the Koolpin Formation which comprised reconnaissance traversing and grab rock chip sampling (16 samples), and drilling of 1 RC hole (MBRC018) for 73m on a gossan outcrop in Koolpin Formation. Work undertaken this year indicates that 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. Many of the iron enrichments are aligned along north-south trending hydrothermal quartz veins. Grab samples of this material were assayed for iron and associated oxides, base metals, gold and silver. Best results in samples KP002 and 4 returned 59% Fe and 0.03-0.05% P. No anomalous base metal, gold or silver values were returned. RC drillhole MBRC018 intersected minor haematite from 41-48 m and black shale with minor vein quartz, trace pyrite and anhydrite (?) from 55-60m. Assay results for these intervals are not yet available. The evidence for base metal mineralisation beneath the pseudo gossans is inconclusive and further limited work is warranted to evaluate this potential for base metals. Field exploration activities for Year 2 proposes to evaluate the base metal potential of the Koolpin Formation and will comprise: 300m of scout RC drilling, and if appropriate; 500m of follow-up RC drilling of a number of the more promising prospects.