Kovacs Prospect annual report 29 March 2007 to 28 March 2008

Abstract

Kovacs Prospect MLC 647 is located 73km south of Tennant Creek Township and lies within the 'Warramunga' project area, wholly within Mungkarta Aboriginal Land Trust formerly known as McLaren Creek Station and surrounded by ELA 25582. The Lease surrounds a small pit of exposed mineralised sulfidic chert/siltstone which assays up to 10.8 grams per tonne of gold. Previous bedrock geochemistry sampling has delineated a strong arsenic anomaly originating from MLC 647 and trending away to the southeast for about 400 metres. The Kovacs Prospect can be considered to have fault controlled quartz-lode Au deposit potential as the cover depths are too thick in the western portion to target any mineralisation that does not have well defined geophysical characteristics. The major factor that suggests the potential for this style of deposit to occur is the age of the Warramunga Formation host succession. The Warramunga Formation is an age correlate with the Bullion Schist of the Barrow Creek district and the Lander River Beds that extend into the Tanami district; both districts are significantly quartz-lode Au mineralised. No ground exploration was conducted during the 2007-2008 reporting period. Due to the recent Joint Venture of this lease to Western Desert Resources Limited, TNG Energy Pty Ltd is not planning any exploration on this tenement in 2008.