Combined Annual Report GR125 for the period 1 December 2012 to 30 November 2013, covering Mining Tenements ML 24727, ML 25087, ML 25088, ML 25152, ML 25396, ML 26222 and ML 25529

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. Exploration work for the 2012-2013 reporting year included: 968 Reverse Circulation drill holes completed for a total of 82,192 metres; 20 Diamond drill hole completed for a total of 1,574.6 metres; 10 Aircore holes completed for a total of 342 metres; Extensive Aboriginal Heritage work over areas within the tenements likely to be disturbed by either Exploration or Mining; Resource models updated by Territory Iron Pty Ltd personnel; Geological mapping and reconnaissance commencing between a number of the important deposits in the Frances Creek Mine site area; A total of 47.1 line kilometres consisting of 2,200 gravity stations took place within GR125. This was part of a significant ground gravity geophysical survey programme at the Frances Creek Mine operation; and An airborne electromagnetic survey was flown over part of the Frances Creek Project area (including part of GR125) to assist in mapping the structure of the host stratigraphy of the Frances Creek mineralisation. It is concluded that mineral Resource development in support of continued open pit mining activities at Frances Creek will require ongoing geological mapping and infill drilling during the upcoming 2013-2014 reporting year. The Resource Base now stands at 22.1 million tonnes at 54.5percent Fe - this is a substantial increase from the previous reporting period. As such, significant budgets have been allocated by TIPL to ensure mine longevity at Frances Creek. There is considered high potential for the discovery of significant ore body positions or extensions within the tenements comprising the Frances Creek reporting group. It is recommended to continue to complete detailed geological mapping, surface sampling and drilling over structurally complex regions of the Frances Creek deposits.