Annual Report EL 25581 East Rover for the period 12 May 2011 to 11 May 2012 Year 3

Abstract

EL 25581 forms part of the Rover Joint Venture between TNG Ltd and Western Desert Resources Ltd ('WDR'). It is located on Aboriginal Freehold Land approximately 60km south west of Tennant Creek. EL 25581 was granted to Tennant Creek Gold Pty Ltd, a wholly owned subsidiary of TNG Ltd, on 11th May 2009. TNG had entered into a farm-in agreement with Western Desert Resources Ltd (WDR) on 27th February 2008, which would allow WDR to earn up to an 80% share in the tenement. WDR is the manager of the joint venture. The area is considered to be prospective for gold and copper mineralisation associated with ironstones similar to that found in the Tennant Creek goldfield. The area is located on the western margin of the Tennant Creek Inlier of Palaeoproterozoic age. This consists of the Warramunga Formation, which has been intruded by granitoids and is overlain by volcanic rocks and sediments of the Flynn Subgroup. The Warramunga Formation hosts gold-copperbismuth mineralisation which is associated with ironstones. The Middle Cambrian Wiso Basin covers the basement rocks in this area. Little exploration had been previously carried out in the area. Two diamond drillholes completed by Geopeko in 1976 on magnetic anomaly Explorer 124 intersected feldspar porphyry, diorite and microdiorite with moderate to strong disseminated magnetite. The magnetite present in the basement rocks explained the magnetic anomaly. Geophysical exploration undertaken during the reporting period by WDR included a 377 line km airborne electromagnetic survey (EM) with associated interpretation and modelling having commenced, and a 4,574 station ground gravity survey, also with interpretation and modelling commenced. Geological work included re-logging and assaying (409 samples) of the drill core from previous exploration.