Annual report EL 23824 Millers for the period 9 February 2009 to 8 February 2010

Abstract

This report is submitted by Territory Resources Limited, to meet the statutory reporting commitments on the tenement for the year ending 8 February 2010. EL 23824 is held as a joint-venture tenement with Territory Resources Ltd as majority holder and tenement manager, and Softwood Plantations Pty Ltd holding a minority interest. Australasia Gold Ltd has gold exploration rights over the tenement. Exploration activities involved target generation using aeromagnetic and radiometric surveys completed during previous reporting periods. All geophysical ground targets were ground-truthed and none were shown to warrant additional drilling, principally due to the style of mineralisation being goethitic supergene enrichment with poor lateral and vertical extents, unlike the primary target of hypogene, hydrothermal, hematite mineralisation seen at Frances Creek. A secondary target was goethitic supergene enrichment seen at Millers, however, no similar mineralisation was observed over the tenement. Outcrop occurring at the larger anomalies had already been drilled during the 2007 years, and where coincident these were deemed to have been sufficiently drilled by outcrop-targetting methods. The only Resource on the tenement remains the manganese-rich goethite deposit at Millers. Millers is fully covered by the Mining Tenement application MLA 26429.