Mount Hardy Project Third Annual Report 4 August 2012 to 3 August 2013 EL 27892

Abstract

Exploration Licence was granted to Bluekebble Pty Ltd on the 4 August 2010. On 26 June 2012 the licence was transferred to Walla Mines Pty Ltd (Walla) as part of an Option Deed between the two parties. TNG Ltd (TNG) purchased the licence from Walla, with the acquisition completed on 10 July 2012. In late July 2012 undertook a HeliTEM survey over the Mount Hardy Copper Field, where the Lander Rock Formation is host to copper-bearing quartz reefs and pegmatite veins. A significant amount of exploration has been undertaken on EL 27892 over the reporting year. Anomalies from the successful HeliTEM survey completed in July 2012 were ground checked and a mapping and sampling programme undertaken in September 2012. Ground EM was completed over six targets and RC drilling completed in November 2012. Downhole surveys and downhole EM was completed early in 2013 followed by a gravity survey, IP survey and diamond drilling programme. There were 23 anomalies generated as part of the HeliTEM interpretation work. These areas were given priority based on the strength of the response and the size, area and depth modelled. Six areas were selected for immediate follow up by ground EM to define the target and model a plate. Five of these areas are within EL 27892. GEM Geophysics completed the ground EM survey with a small fixed loop setup. The strongest anomalies were EM Targets Area 1 through Area 5 and drill holes were designed to test EM Targets #1, #2, #4 and #5. On-ground field work commenced in September 2012 and focused on investigating the strongest HeliTEM Targets (#1 through #5) and the existing historical workings at the Mount Hardy and Browns Mines. Geological mapping and sampling was conducted at all sites and previously drilled BMR holes were GPS located. The October 2012 field program focussed on the highest priority regions outlined by the September work. This included further sampling and mapping of the Browns Prospect, EM Target #1, EM Target #2 and the Mount Hardy Prospect to better define drilling targets based on geological and geochemical anomalism. Step out soil sampling and mapping to close off the open anomalism at the Mount Hardy Prospect (to the SW). Follow-up of several of additional HELITEM targets and ground checking of the other mapped historic workings outlined in Kiek's 1941 report (six numbered areas and two located on maps). Numerous pXRF readings were taken and samples submitted for ICP analysis. In 1967 Mines Branch, Northern Territory Administration completed a seven-hole diamond drill program, for a total of 504m (1656 feet) investigating primary and secondary mineralisation at the Mount Hardy prospect within EL 27892. Core from all seven of the holes are currently stored in the Alice Springs Core facility and are in very good condition. In November 2012 TNG re-logged the core, sampling where more than a quarter of split core remained. The logging and sampling of the 1968 Mount Hardy diamond drill holes confirmed the presence of significant secondary copper, dominantly malachite with associated chrysocolla, chalcocite and brochantite with hypogene chalcopyrite observed in lower quantities at depth. A total of 7 RC holes for 1712m were drilled between the 3 November and 15 November 2012, mainly targeting EM anomalies. While good results were returned these was a significant issue with the drill holes 'lifting' during drilling and missing the target modelled from the ground EM. Following to November 2012 RC drill program six of the seven holes drilled (12MHRC001 to 004, 12MHRC006 and 12MHRC007) were cased for DHEM. The aim of the survey was to confirm the presence of and better define the conductors previously identified by the August ground EM. The DHEM survey was successful in identifying the presence of significant off-hole conductors at each of the target areas, providing a number of additional exploration targets. A gravity survey was carried out over the Browns Prospect, Mount Hardy Mine and EM Targets #1, #2, and #4 in February 2013. The aim of the gravity survey was to delineate potential structural controls on the mineralisation identified at the Browns Prospect and Mount Hardy Mine. Overall the results of the gravity added some structural insight into the areas. Some features/trends have been identified and in conjunction with the other geophysical datasets, it is a useful layer in the interpretation of the various prospects. IP surveys were carried out over the abandoned Mount Hardy Mine and Browns Prospect in March 2013. The IP surveys were initially planned as single line trials to test the effectiveness of the technique over mapped copper showings. Overall the results of the IP surveys were very encouraging in highlighting discrete targets for immediate drill testing. It has also shown that there is potential for significant targets to still exist in areas already covered but downgraded based on the negative results from the HELITEM survey. A fifteen-hole diamond drill program was undertaken in March and April 2013. A total of 2757m was drilled with 2180m of diamond core and four RC pre-collars for 642m. Drilling was conducted at the Mount Hardy and Browns Mine prospects investigating mapped mineralisation and IP anomalism and at EM Targets #1, #2 and #4, targeting DHEM plates. The diamond drilling programme intersected numerous mineralised intervals in all but two drill holes. The drilling successfully outlined the extent of supergene and hypogene mineralisation mapped at the Mount Hardy and Browns prospects as well as testingseveral geophysical targets. Exploration at Mount Hardy during 2012-2013 has continued to highlight areas of potential within the licence and a comprehensive programme has been planned for early 2014.