Mount Peake Project Technical annual report 22 October 2007 to 21 October 2008 EL 23271

Abstract

Exploration Licence 23271 was granted to Tennant Creek Gold (NT) Pty Ltd (TCG) on the 22/10/2002 and expires on the 21/10/2008. TCG is a 100% subsidiary of TNG Ltd (ASX: TNG). TCG originally applied for the licence area to explore for Ni-Sulphides, and it forms part of the companies Mount Peake Project area together with EL 23074. On the 18th August 2003, TCG entered into a Joint Venture agreement with Falconbridge (Australia) Pty Ltd allowing them to earn a 60% interest. On the 15th October 2003 Falconbridge (Australia) Pty Ltd entered into a Heads of Agreement with Discovery Nickel Limited (DNL) whereby DNL assumed Falconbridge's obligations for EL 23271. Tennant Creek Gold (NT) Pty Ltd (TCG) resumed management of the tenement in October 2006 following the failure of the joint venture partners to fulfill its exploration, rent and reporting obligations. Pursuant to Section 26 of the Northern Territory Mining Act, EL 23271 was reduced by 50%, 9 June 2008. A total of 30 one minute graticular sub-blocks were relinquished. A separate relinquishment report was lodged on 3 September 2008 (ref: Burton, P. Mount Peake Project, Partial Relinquishment Report, 22/10/02 - 21/10/07, EL 23271). A full review of all Mount Peake data was carried out by TNG to establish what the J.V Partners had completed. A large amount of time was spent administering the handover and subsequent management of this tenement, including assessment and submission of outstanding documentation to DPIFM. A Detailed assessment of previous work carried out by Discovery Nickel Limited, shows that drill hole ARD01 which targeted the B1 EM anomaly adjacent to EL 23271, intersected a shale unit hosting significant pyrohhite and minor base metals. Subsequent interpretation and additional EM indicated this unit strikes towards EL 23271, however no further work was carried out to test this. The drill core was viewed at the core library in Alice Springs on 26 June 2008 and XRF Niton readings were recorded on notable joints and on the pyrohhite zones where the core had been previously cut and sampled. There were no significant XRF Niton recordings worthy of reporting.