Tennant Creek Project Combined annual report for the period 4 February 2005 to 3 February 2006 Year 2

Abstract

The drilling program completed during 2005 failed to intersect gold or copper mineralisation at Bernborough and Wilderness. Of the six holes drilled at the Bernborough prospect, 2 holes intersected massive hematite. This mineralisation along with moderate to intense hematite alteration is possibly explains the gravity anomaly at Bernborough. The Wilderness lenticular anomaly source, both in gravity and magnetic signature, is most likely a fault or structural zone. Further review of geophysical properties of the gold-copper deposits in the Tennant Creek mineral field suggests that mineralisation is associated with a magnetic iron oxide source even if mineralisation was often associated with non magnetic iron oxides in the weathered horizon and to some extent in the primary zone and that the principal exploration target should be magnetic. A coincident or near coincident gravity anomaly would naturally enhance or possibly better define the target. No further work is recommended at Bernborough or Wilderness and it is further recommended that the Wilderness exploration licence EL 23871 be relinquished. To generate additional targets, gravity surveying should be continued in areas where a primary magnetic target has been defined. Continued investigation of the numerous open file reports on previous work carried out in the tenement areas should also generate new target areas for further work.