Frances Creek North EL 24040 Annual Exploration Report for the period 19th August 2011 to 18th August 2012

Abstract

The activities on EL 24040 during the reporting year consisted of: Geophysics ground gravity survey over EL 24040 (and EL 24715). In total, 1,794 new survey stations were recorded; 1,401 stations were inside EL 24040; Detailed geological mapping and rock-chip sampling programs by an independent contract geologist and Territory Resources' exploration staff; Obtained satellite imagery form GeoImage, which included ortho-rectification and digital surface modeling for contouring; Geological reviews of the area to assist in the geophysical survey and geological mapping programs; and Design of first-pass Aircore (AC) drill programs based on new findings. Geological mapping was carried out from 9th to 21st November 2011. The mapped area is located about 35km north of the main Frances Creek mine workings. Iron mineralisation was encountered, and was found to occur in a series of brecciated siltstone horizons in the Lower Wildman Formation, consisting of goethite and goethite / hematite with secondary manganese.