First annual report Kintor Joint Venture EL 23414 Worman Rocks, EL 5782 Ininti Year ending 26 June 2004

Abstract

Exploration Licences 5782 'Ininti' and 23414 'Worman Rocks' form part of the Kintore Joint Venture Project. The Joint Venture tenements are being explored pursant to an agreement between the registered holder, Lutz Frankenfeld, Troy Resources NL and Tanami Gold NL (TGNL). This combined report describes exploration in the first year of tenure carried out by Tanami Exploration NL (TENL), a wholly owned subsidiary of TGNL, a publicly listed company. The tenements are situated 500 and 450 kilometres respectively west of Alice Springs close to the West Australian border. The target is epigenetic gold mineralisation hosted by Proterozoic basement inliers of the Southern Arunta Province exposed along the northern margin of the Neoproterozoic-Palaeozoic Amadeus Basin. Exploration in the first year included first pass reconnaissance and follow up geochemical sampling. A total of 226 lag and 143 rockchip samples were collected; 185 lag samples and 136 rock chips from EL 23414 and 41 lag and 7 rock chip samples from EL 5782. At Worman Rocks (EL 23414) a number of surface geochemical anomalies have been identified to a maximum of 5 ppb Au. The anomalies are hosted within Neoproterozoic Amadeus Basin sediments. No Proterozoic basement rocks or major quartz reefs were located within the tenement. Follow-up sampling of the weak surface geochemical anomalies failed to improve on initial results returning disappointing results to a maximum of 3 ppb Au. At Ininti (EL 5782) scattered low level gold anomalies to 5 ppb Au were returned. The geology comprises mainly granite and gneiss and is considered unprospective to host significant gold mineralisation. A large exclusion zone overlies the northern section of the tenement which is interpreted to host possible metasediments of the Lander Rock Beds Group and is therefore regarded as having higher prospectivity.