Manbarrum Project Fourth combined annual report EL 24395, EL 25470, EL 25646, A 24518, A 26581

Abstract

The Manbarrum Project is operated by Tennant Creek Gold (NT) Pty Ltd, a wholly owned subsidiary of TNG Limited. The project comprises five exploration titles (EL 24395, EL 25470, EL 25646, A 24518, A 26581) covering a 50 kilometre strike length of the SE margin of the Bonaparte Basin, where widespread Mississippi Valley Type (MVT) Zinc-Lead-Silver mineralisation has been located. During the period 25 September 2009 to 24 September 2010 work on the Manbarrum Project included analysis of the results received from the 2009 drilling programme at the Browns and Sandy Creek Prospects (A 26581 and A 24518), and a new Resource Estimate was produced, taking into account these results and the recommendations of the Data Review undertaken in 2009. The drilling confirmed that the Browns Prospect mineralisation is similar to that at Sandy Creek and that further exploration should be undertaken in the area. The Legune Iron Ore Prospect was sold to private Chinese resource company, Teng Fei Mining Ltd, (TFM). The final payment for the sale was received in March 2010 and does not affect TNGs interest in the Manbarrum Project as a whole. A binding agreement for the sale of the Manbarrum Project as a whole was signed by TFM in May 2010. TFM subsequently withdrew from the sale stating that they were unable to proceed with payment and the matter is now under a legal time-frame to ascertain TFM's final position. In September 2010 TNG reached an agreement with the Traditional Owners and the Northern Land Council to extend the existing exploration agreement and progress the Mineral Lease Application (MLA) for the Manbarrum Project. Total expenditure for the reporting period was $845,099.