Annual Report A 24518 Sandy Creek for the period 25 August 2005 to 24 August 2006

Abstract

A24518 is centred approximately 80 km NE of Kunununurra WA, in the Northern Territory just across the state border. The licence is 100% owned by Tennant Creek Gold Limited and comprises an area of 6 square blocks or 16.83 square km. The area was explored for base metals from the mid 1970's to the mid 1990's by a number of companies including Aquitaine, BHP and Delta Gold. The area was then incorporated into the Ord River Irrigation scheme and all work ceased. Following the decision by the Northern Territory Government not to continue as a partner in the Ord River Irrigation Scheme, Tennant Creek successfully applied for EL 24395 and A24518. Economic resources located on the tenement A24518 comprise The Sandy Creek deposit with a total resource (indicated) of 3.2 Mt at 4.38% Pb, 2.45% Zn, 15 g/t Ag (using a 5% Pb + Zn cutoff). Exploration will focus on confirmation and extension of this resource. Work completed during the first year includes literature research, gravity survey and enhanced processing, geophysical interpretation, satellite imagery acquisition, digital elevation modeling, site visits, drafting and GIS database compilation. Future work will involve further induced polarisation surveys, mapping, rock chip sampling and drilling.