Combined Annual Report GR125/09 for the period 1 December 2011 to 30 November 2012, covering mining tenements ML 24727, ML 25087, ML 25088, ML 25152, ML 25396, ML 26222 and ML 25529 Frances Creek

Abstract

The tenements ML 24727, ML 25087, ML 25088, ML 25152, ML 25396, ML 26222 and ML 25529 overly high grade iron ore deposits at the Frances Creek Mine, and as such significant work was carried out on the tenements during the 2011-12 reporting period. The tenements are located 220km south of Darwin, and 23km north of the town site of Pine Creek. The lithology is comprised of Palaeoproterozoic sedimentary rocks that have been folded and metamorphosed to green schist facies. Mineralisation is restricted to a relatively narrow brecciated zone that runs above and sub-parallel to the Lower Wildman Formation footwall. Continued analysis of the existing exploration drill data and detailed in-pit grade control data during 2012 has shown significant geological structural complexity and its controls on ore body geometry. Territory has continued to test plunge positions of important ore shoots at the Frances Creek Mine with significant success. This has highlighted some poorly drilled or undrilled areas for immediate follow up. Exploration work for the 2011-12 reporting year included: 589 Reverse Circulation drill holes completed for a total of 45,460 metres; 16 Diamond drill hole completed for a total of 1,582.3 metres; 56 Air Core holes completed for a total of 3,864 metres; Preliminary metallurgical results from Elizabeth Marion Metallurgical Drilling Program; Extensive Aboriginal Heritage work over areas within the tenements likely to be disturbed by either Exploration or Mining; Resource models updated by Territory Resources Limited personnel; All existing Mineral Resource models re-optimised using improved open pit optimisation parameters and new Mineral Resources for the Mine became available at 31st October 2012, using a lower 45% Fe ore block cut off; Geological mapping and reconnaissance commencing between a number of the important deposits in the Frances Creek Mine site area; and An updated 2013 MMP for the planned Mine area that was approved during the reporting period.