Mount Peake Project Fourth Group Annual Report GR226/12 EL 27069, EL 27070, EL 27941, EL 28491, EL 29578, 18 February 2014 to 17 February 2015

Abstract

The Mount Peake Project is operated by Enigma Mining Ltd, a wholly owned subsidiary of TNG Ltd. The project currently comprises five exploration licences (EL 27069, EL 27070, EL 27941, EL 28491 and EL 25978) in the north-central portion of the Palaeoproterozoic Arunta Province. The project area is located approximately 220km NNW of Alice Springs in the Northern Territory and covers portions of the Mount Peake (SF53-05) 1:250,000 map sheet. It lies within the Stirling and Anningie Pastoral Leases and is subject to Native Title. The main focus of the Mount Peake project has been evaluation of the potentially world class Fe-V-Ti deposit which lies within ELR 29627. The project has reached Feasibility with a final report due in 2015. Reverse circulation drilling was carried out on the west, southwest and eastern target areas during the reporting year. The 12 hole reverse circulation drill program commenced in March 2014 totalling 1319m. The drilling intersected small low grade mineralised intervals within four of the holes drilled at the east target. Both west targets proved unsuccessful with all holes hitting palaeoproterozoic granite beneath quaternary sandplain cover. Two diamond drill holes were drilled in August/September 2014 on EM targets within EL 27070 and EL 27069 to determine the graphite potential within the project area. Anomalies G34 and BGC1 had been outlined previously by interpretation of airborne Electromagnetic surveys and were each RC drill tested in the 2011/12 and graphite identified. The 2014 work re-entered these holes and 207.95m of core was generated for metallurgical testwork. Composites of BGC1 and G34 achieved concentrate grades of 60-70% in the initial work. Follow-up testwork was carried out on two BGC1 composites, including a higher grade composite, with both samples returned final concentrate grades in excess of 90% graphite. A comprehensive rehabilitation programme was carried out across the Mount Peake project area during 2014. All drill pads and sumps have been rehabilitated and RC sample bags removed from all sites.