Year 4 Annual exploration report EL 25397 Sandy Creek Calvert River Project for period ending 5 February 2011

Abstract

EL 25397 is near the southern coast of the Gulf of Carpentaria and the Queensland border; south-east of the township of Borroloola. Territory Uranium Company Pty Ltd is exploring for uranium and base metals, and applied for EL 25397 to determine the potential for a wide range of mineralisation styles. In years 1 to 3 TUC has conducted a number of phases of exploration over EL 25397 including stream sediment programs, auger and soil sampling, helicopter reconnaissance and an airborne HYVISTA spectral survey. Results have been very promising with geochemical anomalies confirming geophysical and structural targets. In Year 4 TUC applied for and was awarded a grant of $100,000 under the NT government's drilling collaborations 'Bringing Forward Discovery' initiative. The collaboration included a proposed program of 8 diamond holes for 800m with an estimated expenditure of $389,000 for the total program. The program was scheduled for September 2010 but despite TUC's efforts was postponed due to land access issues until the 2011 field season. A total of 10 samples (4 soil and 6 rockchip) were taken over the tenement. Anomalous results included 750ppm Cu and 60% Fe.