EL 27892 Mount Hardy Project Second Annual Report 4 August 2011 to 3 August 2012

Abstract

TNG Ltd (TNG) purchased EL 27892 from Walla Mines Pty Ltd, with the acquisition completed on 10 July 2012. As part of the due diligence prior to acquisition of the licence TNG reviewed previous exploration across the project area to identify targets that warrant further work. Historical rock chip sampling in the Mount Hardy area by White Industries (early 1990's) and Tanami Gold NL (2002) returned numerous anomalous copper results, with peak grades of up to 19 percent copper, 18 percent lead, 1.52 percent zinc, 2.66 g-t gold, and 170 g-t silver. Fugro Airborne Surveys Pty Ltd undertook a HeliTEM Survey over the Mount Hardy licence area in July. A total of 930 line kilometres were flown in a north-south direction at 200m line spacing. 527 line km were flown over EL 27892. Five high priority Electro-Magnetic (EM) targets being identified from the survey. These represent discrete anomalies with a strike length of approximately 250m and indicate the presence of localised bedrock conductors at depths less than 100m from surface. Ground EM surveys have been planned for each target to confirm and improve the resolution of the HELITEM anomaly for future drill testing. Field work to date is encouraging and the exploration conducted has highlighted the potential for the delineation of economic copper mineralisation.