EL 24040 Annual Report for the period 19 August 2013 to 18 August 2014

Abstract

This report describes exploration activities conducted on Frances Creek tenement EL 24040 by operator Territory Resources Ltd (subsidiary Territory Iron Pty Ltd) from 19th August 2013 to 18th August 2014. Exploration activities during the reporting year included a drill programme comprising 14 RC drill holes for 958 m (of which 296 samples were submitted for assay), detailed geophysical surveys and minor reconnaissance field visits. In September and October 2013, Territory Iron Pty Ltd undertook a significant ground gravity geophysical survey programme for the Frances Creek project area which included part of tenement EL 24040. The geophysical surveys involved detailed regional ground gravity and airborne electromagnetic (EM) data acquisition. The regional ground gravity survey was conducted by Daishsat Geodetic Surveyors and comprised 189 line kilometres with a total of 7,719 gravity stations. The airborne electromagnetic survey was conducted by GPX Surveys using their proprietary XTEM electromagnetic system in order to better define the structure of the host stratigraphy for mineralisation. Flying specifications include a nominal EM array height of 35m with a line spacing of 100m.