Sixth annual report for the Tanami Exploration Agreement for EL 2367, EL 4529 and SEL 23662 for the period 1 January to 31 December 2010

Abstract

Following reassessment of district prospectivity in the 2008 reporting period, exploration in 2009 was planned to test two targets to validate the empirical model devised through the previous year. Initial drilling was attempted in 2009 for both targets. At Oberon, drilling was terminated before target depth due to ground conditions. At Callie NW, delays in permitting lead to attempts to test the target from within the boundaries of MLS 154; an ineffective position. Prioritisation of drilling to further develop the potential of the emerging Auron ore body saw rig capacity directed away from TEA exploration. In 2010, drilling of one hole was completed at Callie NW. The hole failed to return significant results; however review of recent 3D magnetic modeling suggests that the drill hole was poorly sited to test for the target position. At Oberon, the failed 2009 hole was 'twinned' by hole TID0065. Assay results for this hole were extremely encouraging, and follow-up commenced in the latter half of the year, comprising TID0066 (drilled 200m to the west of TID0065), TID0067 drilled 200m east of TID0065) and TID0068 (drilled below TID0065). Holes TID0067 and TID0068 remain incomplete at year end; drilling was terminated following the onset of the wet season, which lead to safety concerns related to site access. Assays for part of TID0066 were received in the reporting period (a second batch of assays had not yet been dispatched) and provided further strong encouragement. A single monitoring bore was drilled by Newmont Tanami Operations' Environment Department. Whole rock geochemical determinations were undertaken to constrain the stratigraphic position of the drilled units. In 2011, significant follow-up drilling at Oberon is planned. The strong results at Oberon have added weight to NTO's exploration efforts in the Tanami, increasing confidence in the potential for large Callie style ore bodies at depth beneath geochemical anomalies hosted by key stratigraphic groups. Additional first pass drilling for these 'deeps' targets is planned for 2011, at Minotaur and in an area south of The Granites.