Fifth combined annual report for EL 8696, EL 8697, EL 9442 and EL 9449, for the year ending 21 August 2007, Lake Mackay Project

Abstract

The Lake Mackay Project is located approximately 460km WNW of Alice in the western Arunta region. The project comprises four granted Exploration Licences - EL 8696, 8697, 9442 and 9449. All tenements are registered to Tanami Exploration (TENL), a wholly owned subsidiary of Tanami Gold NL (TGNL), a publicly listed company. Previous exploration has outlined several prospects within the Lake Mackay Project area. In the first two years of tenure previous managers Newmont Gold Exploration Pty Ltd (Newmont Gold) defined the Taupo, Te-Anau and Manapouri anomalies. Geochemical sampling and RAB drilling by TENL in the third year identified the Whakatipu, Tekapo and Ohau anomalies. An Aircore drilling program at the Tekapo prospect last year targeted gossanous ironstone and returned several promising intersections peaking at 16 metres at 3.4g/t Au from 29 metres in LMA133. Aircore drilling was carried out during the reporting period at the Tekapo prospect to follow up the mineralisation discovered in Year 4. Also lag sampling and rock chip sampling was completed in the Tekapo area. Mineralisation was observed in eight holes with a best intercept of 3m at 7.27 g/t Au in TKA007. Overall the tenor of gold assays was lower than expected for largely disappointing results.