Sixth annual report EL 23655 Lander, Reynolds Range Project for the year ending 11 June 2009

Abstract

Tanami Gold NL identified the potential for quartz-vein-hosted gold mineralisation in the Proterozoic basement rocks of the Reynolds Range area. EL 23655 was granted to Select Resources Pty Ltd (Select) on 12 June 2003 and is being explored by Tanami Exploration NL (TENL) as part of its Reynolds Range Project under a Joint Venture Agreement with Select. TENL is a wholly owned subsidiary of Tanami Gold NL (TGNL), a publicly listed company. In 2008 TENL introduced a third party, Deep Yellow Limited (DYL), to the joint venture. DYL explored the tenement for the potential of uranium mineralisation. EL 23655 lies in Central Australia centred approximately 245 kilometres north-northwest of Alice Springs. It is situated in the central part of the Aileron Province of the Arunta Region and is covered by the Mount Peake and Napperby 1:250,000 Geological Sheets. In the sixth year of tenure DYL completed all exploration including reconnaissance field trips, an Airborne Electromagnetic (AEM) survey, a Night Time Thermal Infared (NTIR) data interpretation and an aircore drill programme. The field trips, the AEM survey and the NTIR data interpretation resulted in the identification of paleochannels, which where subsequently drill tested in parts, where access was allowed. Drilling intersected oxidised and clay-prone colluvium without finding any sandy or calcreted paleodrainage. Therefore the uranium prospectivity of this tenement is considered downgraded and unattractive for further sediment-hosted exploration. No significant results were returned from the drill program. The best uranium assay result was 9ppm U and the best uranium oxide assay result returned was 11ppm U3O8 from a five metre interval in hole RRAC 220.