Annual exploration report on EL 24715 Mount Masson Project year ending 28 February 2008

Abstract

Exploration Licence 24715 is situated approximately 160 km SE of Darwin and 50k m north of the township of Pine Creek. In 2006, by virtue of an agreement, Territory Resources Limited acquired rights to explore iron ore within the tenement. The predominant rocks of the project area are the Mundogie Sandstone, a thickly bedded, medium to coarse, poorly sorted, feldspathic quartz meta-arenite, the Wildman Sandstone, which is laminated, red-brown and cream colour banded silty carbonaceous phyllite (meta-siltstone). It is also interbedded with sandy ferruginous meta-siltstone, thinly bedded feldspathic quartz meta-arenite, quartzite, litho-feldpspathic meta-greywacke. The western part of the tenement covers tightly folded Gerowie Tuff (siliceous siltstone and phyllite interbedded with pale cherty argillite, black cherty crystal and lapilli tuff) and the Koolpin Formation. It is ferruginised meta-siltstone and phyllite with chert bands, lenses and nodules; graphitic phyllite and slate. This sequence has been intruded by the Minglo Granite. During the reporting period, the area was explored for iron and gold mineralisation. For this purpose, a program of HyMap surveying was carried out by HyVista Corporation. In addition, a drilling program was undertaken in selected areas. MyMap survey identified minerals such as illite-kaolinite, kaolinite, chlorite-carbonate, 3 illites and 3 hematites. Drilling was undertaken to test areas of iron mineralisation in the project area. A total of 39 RC holes were drilled for 1835 metres. In addition, 222 RC chip samples were analysed by XRF method. During this campaign, a number of drill holes intersected significant areas of iron mineralisation. Exploration conducted in 2007-08 shows the potential of the area for iron ore mineralisation. In addition potential for gold, manganese, tin/tungsten and uranium also exit in the area. It is expected that exploration activities will continue in the area which will include further interpretation of data obtained, additional geochemical sampling and assaying which will define further targets for drilling.