Combined Annual Report for the year ending 24 February 2006, AN 389, A 24957, EL 23237, EL 10137, EL 22269, EL 22270

Abstract

This report details exploration activities for iron mineralisation conducted by Territory Iron Pty Ltd within AN 389 (Frances Creek) during the period ended 24th February 2006. These activities were conducted under a joint venture agreement with Arafura Resources NL relating to iron ore mineralisation only within the tenement. During the reporting period Territory Iron undertook RC, Diamond and RAB percussion drilling, and other detailed studies on a number of key deposits within AN389 with the objective of: confirming the tonnage for these deposits to JORC Code indicated resource status, confirming the presence of resources of sufficient size to allow the re-opening of the Frances Creek Mine. Work comprised: RC drilling- 5766m in 120 holes; RAB drilling-649m in 15 holes; Diamond drilling- 613.23m in 9 holes; Assaying of 2875 one-metre interval drill-hole samples; Establishment of survey control; Dewatering of the Helene 6/7 pit; Historical data validation and compilation; Geological and structural mapping of iron mineralisation; 260 line km of aeromagnetic and radiometric survey; Orientation ground geophysical surveys; Mineralogy and petrology studies; Resource modelling of the Helene 5 and 6/7 deposits; Metallurgical and mining feasibility studies.