Tennant Creek Project EL 27580, EL 27712 and EL 27992 Combined annual report for the period ending 25 October 2011 GR181

Abstract

This is the first combined annual report for Tennant Creek Project ELs 27580, 27712 and 27992 for the period ending 25 October 2011. The Tennant Creek Project, located approximately 28km ENE of Tennant Creek township, is a sub-project of Vale's Georgina Phosphate Exploration Project. The regional geology is dominated by the north trending Palaeoproterozoic Tennant Creek Inlier. Cambrian rocks occupy two sedimentary basins (Wiso and Georgina) to the west and east respectively of the Tennant Creek Inlier. Phosphate exploration work on Tennant Creek in 2011 consisted of a Flora and Fauna Desktop Study Report, geophysical interpretive targeting, field reconnaissance, rock chip sampling (16 samples), line clearing, reconnaissance reverse circulation (RC) drilling, diamond drilling and rehabilitation. A Geophysical Basin Modelling Study was completed over Vale's Georgina Project, including Tennant Creek, to gain a better understanding of the Georgina Basin and assist with phosphate drill targeting. Five (5) RC holes were drilled on ELs 27580 and 27992 for 562m and 297 composite samples. One (1) diamond hole (with HQ core from 71.6 m to 219.45 m EOH) was drilled on EL 27580 to test a coincident magnetic-gravity anomaly for copper-gold potential. RC drill assay results for 2011 will be available in the next reporting period. Further drill targeting using drill results and geophysical modelling studies is planned for the 2011-2012 reporting period.