Report on EL 25903 for the period 14 November 2010 to 13 November 2011

Abstract

The main objective of EL 25903 was to continue examining the alluvial potential of the remaining area as well as to examine the old 'Misses Mine' workings and possible connection to the existing Francis Creek Gold Mine deposit. Time was spent preparing the application for ML(A) 28573 which included the north end of the original Francis Creek Iron Ore lease and a portion of the 'Saddle Extended' deposit in addition to other areas considered productive. The 'Misses Mine' is located approximately 1Km to the east of MLN 770. This area consists of a shallow shaft of approximately 12 metres in depth sunk on a quartz reef approximately 1 metre wide. This reef trends in a north westerly direction for about 100 metres and appears to connect with the quartz vein exposed on MCN 1645 and 1646. Ten samples weighing approximately 5kg each were taken from the exposed vein material at 1 metre intervals down the shaft which was the 'Misses Mine'. These samples were later crushed to minus 74 micron and gravity concentrated. The concentrate was not amalgamated as had been done previously as visible gold was seen in varying quantities in the majority of the samples taken. The gold particles ranged from approx. 0.8mm down to an estimated 0.015mm, finer gold was observed but to quote an estimated size would be guesswork. The nature of the gold observed is in keeping with what one would expect from a narrow quartz vein system such as this. Considering the results obtained thus far if a small treatment plant was available nearby it is considered that a small scale mining operation would probably be viable. The alluvial material in the area of the 'Misses Mine' is consistent with other material in the area and estimated to contain in the order of .4-.5 grams per tonne Au. A field trip was undertaken in the presence of three geologists, (one senior and two junior) from a public company operating in the area, however, given that the principal feature of the area was the quartz vein system the area held little interest to their company as a joint venture prospect. In the closing days of this reporting period negotiations have commenced with Territory Resources Ltd. to enter into a Joint Venture which will allow them to explore for Iron Ore. These negotiations are expected to be finalised by the end of January 2012. Territory Resources Ltd. will then submit their own work programme for the remainder of the 2012-13 period.