Combined Annual Report for the period 25 February 2011 to 24 February 2012, MA 389, EL 10137 and EL 22270

Abstract

Reverse Circulation drilling during the reporting year occurred within MA 389 over the prospective iron-rich Koolpin Formation. Drilling consisted of 10 holes for 895 metres. Geological mapping and target generation of the Koolpin Formation was carried out by Territory Resources exploration geologists within MA 389. This followed on from the mapping that was completed by an independent geological consultant during the previous reporting period over the Luke's Find Prospect, located within a 7km long strike-parallel valley that lies about 2km to the west of the main Frances Creek mine workings. The mineralisation occurs in a series of narrow brecciated siltstone horizons in the Koolpin Formation and includes both iron and manganese accumulations. Stratigraphically, this target horizon is not the same as the main mineralisation at the mine site, which is hosted in the Wildman Formation. An unconformity separates the Wildman Formation from the Koolpin Formation. Geological mapping and target generation of the Jasmine - North Beryl - Ochre Hill Area was carried out by Territory Resource geologists within EL 10137 from June to August 2011. The iron mineralisation was found to occur as thin brecciated units within the Wildman Formation. No exploration activities were conducted within EL 22270 within the reporting period.