Mount Peake Project Second annual report 13 August 2010 to 12 August 2011 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. Two RC drill holes (BGC001-002), for a total of 408m were completed at the G9 Prospect in October 2010. The aim of the programme was to test the occurrence of the G9 GEOTEM anomaly identified from geophysical review in early 2010. BGC001 was drilled in order to intersect a magnetic conductor in the range of 160-200m. No significant change in lithology was identified until 244m where a graphitic schist appeared and continued until 286m. Drilling ceased at 306m after the initial quartzite/schist reappeared. An unplanned hole, BGC002, was drilled after a copper prospect was identified cropping out near a prepared pad. The gossan contained visible malachite and associated Cu sulphide minerals within a large refolded steeply plunging quartzite unit. Analyses of samples through the graphitic schist present in BGC001 show highest values of Cu, Pb and Zn on the boundary of the quartz-mica-schist and the graphite-schist. Samples analysed from BGC002 represented the top weathering zone, two quartz intervals and a bottom zone of ultramafic rocks. Cu values over the top five metres peaked at 354ppm and may be as a result of the nearby Cu gossan. No other significant results were reported. Twelve rock chip samples from the copper outcrop were sent for analysis and all returned strong Cu, As and Co results. The highest Cu result was recorded from iron rich material grading at 6.06% Cu with Fe at 11.25% and Co at 1970ppm. Additional sampling is required to fully assess the potential of the copper prospect.