Combined Annual Report for the period 25 February 2012 to 24 February 2013, MA 389 and EL 10137

Abstract

Reverse Circulation (RC) drilling during the reporting year was completed within EL 10137 at the 'Skyrats' Prospect, located 1km south of the previously mined Ochre Hill deposit, within the prospective Lower Wildman Formation. The drilling consisted of 7 holes for a total of 558 metres. Results received from the drilling indicate minor enrichment along at this prospect. It is recommended to investigate possible strike extensions to mineralisation at this prospect, to determine if mineralisation continues along this trend. Continued 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 RC drilling program that was completed in the previous year's reporting period, where iron mineralisation of limited thickness was encountered. 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.