Third annual report for EL 22349 Molyhil

Abstract

Tennant Creek Gold Ltd acquired 100% of EL 22349 in 2004 and commenced a systematic exploration program to fully evaluate the Molyhil deposit as well as investigating local and regional exploration potential. Tungsten and molybdenite was discovered at Molyhil in 1973. Fahma Mines Pty Ltd selectively mined approximately 20 000 tonnes of ore during 1976 - 77. Petrocarb Exploration NL acquired the operation in 1978 and production continued until late 1981 when tungsten prices collapsed. Petrocarb established an indicated open cut reserve of 1.8 million tonnes at 0.6% WO3 and 0.3% MoS3. In June and July 2004, Tennant Creek Gold completed 5 diamond drill holes for 676 m and 23 RC holes for 3147 m. A JORC compliant drill indicated resource was subsequently calculated at 2 065 009 tonnes grading 0.304 percent WO3 and 0.182 percent MoS2. The resource zone remains open at depth and along strike to the south. In December 3 trenches were excavated over an 80 metre strike length of the southern orebody and 15 tonnes of ore extracted for metallurgical testwork. Magnetic modelling of the southern and Yacht Club orebodies indicated the mineralised zone extends to 400-500metres vertical depth and potentially contains 4 -5 million tonnes of high grade ore. Geophysical survey identified 74 Molyhil look-alikes and 16 radiometric anomalies. It is recommended that geochemical anomalies identified should be drill-tested.