Combined Annual Report MLS 119 - 133, 153, 167, 168, 180 Central Tanami Project from 1 January 2011 to 31 December 2011

Abstract

On 30 March 2010 the tenements compromising the Central Tanami Project (CTP) were acquired by Tanami (NT) Pty Ltd, a wholly owned subsidiary of Tanami Gold NL, from Otter Gold NL, a wholly owned subsidiary of Newmont Asia Pacific. In 2011 diamond core drilling was completed at four prospects on six mineral leases totalling 29 holes for 9,981.4m. The aim of the 2011 drilling program was similar to the 2010 drilling program in terms of extending the known mineralisation limits which were defined primarily by the historic and the previous TNT drill records. The drilling focused on delineating extensions to known resources both at depth beneath optimised open pit shells and along strike through sparsely drilled continuations of the mineralisation trends. At the Repulse - Hurricane Deposit the drilling extended the mineralisation beyond the previous limits at depth, to the north and to the south. At the Southern Deposit the geotechnical drilling helped to alter the existing historic open pit design to a preliminary design plan. At the Carbine Open Pit the drilling returned a number of significant intersections and assisted the ongoing Carbine underground mine design studies. At the Phoenix Open Pit the two holes encountered the down dip extensions of previously drilled mineralisation from within the current optimised pit shell. The highest overall assay result returned was 40.6g/t gold from the 374.4m to 374.7m interval in hole HRDD0005. An updated CTP Resource estimate was completed incorporating results from drilling completed in 2011. As an ongoing process the results of the metallurgical test work are amalgamated with previous results and modelled to ascertain specific recoveries for different states of oxidisation and mineralised lodes.