Mt Goyder EL 23921 Annual report for the period 18 December 2005 to 17 December 2006

Abstract

This report details exploration activities conducted by Territory Iron Limited within the EL 23921 (Mt Goyder) area during the Year 3 ending 17th December 2006. Exploration activities during the reporting year comprised RC drilling (15 holes for 638m) at magnetic Anomalies 2, 5 and 6 located on the eastern side of the Mary River on the western and northern flanks of the Mt Goyder Syenite intrusive. Results are: - A 5m wide magnetite-haematite lens was intersected at Anomaly 6. It extends to at least 18m vertical depth. - Anomalies 2 and 5 were not adequately drill tested and the iron ore potential of these anomalies is still open. - The two main rock units present in the area are a very hard, fine-grained, siliceous hornfelsed mudstone and a syenite. They carry abundant, strongly magnetic pyrrhotite, magnetite and pyrite. - The pyrrhotite and magnetite are considered to be the source to the aeromagnetic features at Mt Bundey. - Anomalous copper is developed over extensive intervals in holes MBRC005 and 7 at Anomaly 6 and is associated with pyrrhotite development in both the hornfels and syenite. - Best result was 31m at 0.19% Cu from 9m depth in MBRC005.