Mount Peake Project Annual report 13 August 2009 to 12 August 2010, EL 27070

Abstract

EL 27070 was granted to Enigma Mining Limited (Enigma) on the 13 August 2009. Enigma is a wholly owned subsidiary of TNG Ltd. The licence forms part of TNG's Mount Peake Project area together with EL 23074, EL 23271, EL 27069, EL 27706, EL 27787 and ELA 27941 and covers a total area of 89.46km2. Exploration carried out on EL 27070 during the reporting year was mainly of a regional nature. A review of historical exploration was undertaken along with a review of existing geophysical data. A review of all Airborne Electro-Magnetic (AEM) data flown over the Mount Peake area by Discovery Nickel confirmed the presence of a significant basement conductor BCG-1 to the north of the previously identified B1 anomaly. Drilling of BGC-1 was to take place early in 2010, but bad weather delayed this programme. Review of the regional magnetic data revealed three principle magnetic domains being selected for more detailed work. EL 27070 lies within the northern domain and one drill hole (Nr1) has been recommended for EL 27070. Thirteen late-time, intermediate to strong conductive features were identified from a review of the available GEOTEM data by Planetary Geophysics, and one of these features fall within EL 27070. AEM-1 coincides with Discovery Nickels B-3 target. Review of this feature is recommended. Southern Geoscience Consultants have also identified 35 targets from the GEOTEM and other geophysical data. Six of these targets fall within EL 27070. Four of these targets are of low priority, one (G8) has a moderate priority and G9, which coincides with Discovery Nickels B1, and BGC-1 is of very high priority. Drilling has been recommended and is planned for late-September/early-October 2010. The geophysical review work carried out in the 2009-2010 season has provided targets for follow-up work generated from both the regional magnetic and GEOTEM data. Ground geophysical surveys, will be used to delineate targets for drill testing. Results of the drilling of the G9 target will determine the course of further exploration.