Annual Report EL 25581 East Rover for the period 12 May 2012 to 11 May 2013 Year 4

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 has allowed WDR to earn 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-copper bismuth 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 drill holes 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 apparently explained the magnetic anomaly. From 2009 until the end of the 2011-2012 reporting year WDR has carried out a detailed airborne magnetic/radiometric survey (5766 line km), an airborne electromagnetic survey(377 line km), a ground gravity survey (4574 stations), and drilled 7 RC holes (1692 m), three of which were completed with diamond coring (695.5 m). Work in the 2012-2013 reporting period included an IP survey (18 line km), modelling of IP/gravity/airborne EM/magnetics, and drilling of three diamond holes with RC pre-collars (1429.4 m), with subsequent wireline logging and down hole EM.