Northern Territory
Mineral Investment Opportunities
October 2014
© Northern Territory Government, October 2014 Disclaimer
This publication has been compiled by the Northern Territory of Australia as a guide ONLY to the exploration and investment opportunities in the Northern Territory of Australia and is not intended to qualify for, be utilised or interpreted as a prospectus for any contributing party or to give any impression that the Northern Territory of Australia endorses any particular exploration project. Further information should be obtained directly from any contributing entity (including by way of due diligence enquiries) where you are considering opportunities outlined in this publication.
Reliance should not be placed upon any information contained in this publication for the purpose of making any legal, corporate or investment decisions. The Northern Territory of Australia recommends any person proposing to invest in any exploration activity or entity conducting exploration in the Northern Territory of Australia to obtain relevant independent fi nancial and legal advice which specifi cally takes into account matters relating to your particular situation. The Northern Territory of Australia disclaims any liability or responsibility or duty of care towards any person for any loss or damage whatsoever caused by the use of, or reliance on the information contained in this publication.
The Northern Territory of Australia compiled this publication using materials and information provided by private sector entities. While all care has been taken to ensure that information contained in this Northern Territory Mineral Investment Opportunities publication is correct at the time of publication the Northern Territory of Australia has not independently verifi ed the information provided. Changes in circumstances of the private sector entities contributing to this publication after the time of its publication may impact on the accuracy of information contained in it. The Northern Territory of Australia gives no warranty or assurance, and makes no representation as to the accuracy of any information or advice contained in this publication provided by any private sector entities, or that such information or advice is suitable for use in relation to legal, corporate or investment decisions.
Contact Details
Dr. Ian Scrimgeour Executive Director
Northern Territory Geological Survey Tel: +61 8 8999 5377
e-mail: [email protected] Fiona Park
Director Investment Attraction
Northern Territory Geological Survey Tel: +61 8 8999 1385
e-mail: fi [email protected]
www.core.nt.gov.au
Project Status Summary
STATUS COMMODITY PROJECT
Grassroots Exploration Opportunities
Bowgan Minerals Au, Cu, Ag Neutral Junction
Bowgan Minerals U, Au, base metals Bowgan
Crossland Strategic Metals REE, U Mount Stafford
Red Metal Cu, Au, NI Irindina
Red Metal Cu, Au Tennant Creek
Spectrum Rare Earths Base metals, Au Calvert
Daylight Jack Diamonds and base metals Kirkimbie
Ismins Au, Ag, Cu, Sn Compass Creek
Early Stage Exploration
Crossland Strategic Metals U, Au, base metals Chilling
Outback Metals Sn, W, Au, Ag, Cu Maranboy/Yeuralba
Outback Metals SN (Cu, Au) Mt Wells
Spectrum Rare Earths REE Stromberg and Skyfall HREE
District
Spectrum Rare Earths REE, U Quantum
Thundelarra Exploration U Ngalia Basin
TNG Ltd Cu Mount Hardy
Uranium Equities U, PGE, Au Nabarlek
Advanced Exploration
Alligator Energy U Tin Camp Creek
Crossland Strategic Metals REE Charley Creek
Deep Yellow U Napperby
KGL Resources Cu, Zn, Ag, Pb Jervois
Minemakers P (P2O5) Wanarah
Rum Jungle Resources Potash Karinga Lakes
Rum Jungle Resources P (P2O5) Ammaroo
Thor Mining Au Spring Hill
Project Development
Arafura Resources REE Nolans
TNG Limited V, Ti, Fe Mount Peake
Thor Mining W, Mo Molyhil
Tellus Holdings NaCl Chandler Salt Mine
Project Status Defi nitions
PROJECT STATUS DEFINITIONS
Grassroots Exploration Opportunities This category is for exploration tenements with identified prospectivity, but with little or no drilling undertaken.
Early exploration This project is at a preliminary stage of investigation. While the company might have reported some exploration results, the information is not yet sufficient to estimate the size of a Mineral Resource according to the JORC Code.
Advanced exploration Exploration results have been sufficient to estimate a Mineral Resource or Ore Reserve according to the JORC Code.
Project development Having defined Mineral Resource or Ore Reserve according to the JORC Code, the company is now undertaking studies and/or seeking approvals to determine whether the project can feasibly be developed into an operating mine.
PROJECT DEVELOPMENT DEFINITIONS Scoping study
A scoping study is a preliminary economic and technical study to understand the approximate economics and viability of various development options for the mining and treatment of a mineral deposit. It will involve a conceptual or preliminary mine plan and is used as the basis for determining whether to proceed to more detailed studies. Scoping studies are developed copying plans and factoring known costs from existing similar projects completed elsewhere and are accurate to within plus or minus 35-50%.
Feasibility Studies
A Preliminary Feasibility or “Pre-Feasibility Study” (PFS) is more detailed than a Scoping Study. A Pre-Feasibility Study is used in due diligence work, determining whether to proceed with a Definitive Feasibility Study and as a
“reality check” to determine areas within the project that require more detailed attention. Pre-Feasibility Studies are done by factoring known unit costs and by estimating gross dimensions or quantities once preliminary technical, engineering and mine design has been completed. Pre- Feasibility Studies are generally accurate to 20-30%.
A Definitive Feasibility Study (DFS) is the most detailed study and will determine definitively whether to proceed with the project. A Definitive Feasibility Study requires a high level of technical, engineering and design work as well as detailed capital and operating budget figures for the project. Definitive Feasibility Studies are accurate to within 10-15%.
A Bankable Feasibility Study (BFS) is a Definitive Feasibility Study, with a focus on financial and budget aspects, that is presented to financiers to obtain project financing. It is also accurate to within 10-15% depending on the requirements of the financial institution.
OTHER DEFINITIONS JORC Code
The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves is called ‘the JORC Code’.
The JORC Code is a professional code of practice that sets minimum standards for Public Reporting of minerals Exploration Results, Mineral Resources and Ore Reserves.
The JORC Code provides a mandatory system for the classification of minerals Exploration Results, Mineral Resources and Ore Reserves according to the levels of confidence in geological knowledge and technical and economic considerations in Public Reports.
Any Public Reporting of Exploration Results, Mineral Resources or Ore Reserves must be signed off by a Competent Person in accordance with the JORC Code.
A Competent Person must be a Member or Fellow of The Australasian Institute of Mining and Metallurgy, or of the Australian Institute of Geoscientists, or of a ‘Recognised Overseas Professional Organisation’ (the 2004 Edition) or ‘Recognised Professional Organisation’ (2012 Edition).A Competent Person must have a minimum of five years’ experience working with the style of mineralisation and type of deposit under consideration and relevant to the activity which that person is undertaking.
COMMODITY COMPANY PROJECT STATUS PAGE URANIUM
U Alligator Energy Tin Camp Creek A 6
U, Au, base metals Crossland Strategic Metals Chilling E 13
U Deep Yellow Napperby A 20
U Thundelarra Exploration Ngalia Basin E 24
U, PGE, Au Uranium Equities Nabarlek E 31
RARE EARTHS
REE Arafura Resources Nolans PD 39
REE Crossland Strategic Metals Charley Creek A 43
REE Spectrum Rare Earths Stromberg and Skyfall HREE
District
E 51
REE, U Spectrum Rare Earths Quantum E 57
BASE METALS
Cu, Zn, Ag, Pb KGL Resources Jervois A 66
Cu TNG Ltd Mount Hardy E 72
FERROUS METALS & FERROALLOYS
V, Ti, Fe TNG Limited Mount Peake PD 79
W, Mo Thor Mining Molyhil PD 86
GOLD
Au Thor Mining Spring Hill A 90
U, Au, PGE Uranium Equities Nabarlek E 93
PHOSPHATE, POTASH
P (P2O5) Minemakers Limited Wonarah A 101
Potash Rum Jungle Resources Karinga Lakes A 108
P (P2O5) Rum Jungle Resources Ammaroo A 114
SALT
NaCl Tellus Holdings Chandler Salt Mine PD 119
TIN
Sn, W, Au, Ag, Cu Outback Metals Maranboy/Yeuralba E 125
Sn (Cu, Au) Outback Metals Mt Wells E 132
Grassroots Exploration Opportunities
Au, Cu, Ag Bowgan Minerals Neutral Junction G 138
U, Au, base metals Bowgan Minerals Bowgan G 147
REE, U Crossland Strategic Metals Mount Stafford G 153
Cu, Au, NI Red Metal Irindina G 158
Cu, Au Red Metal Tennant Creek G 163
Base metals, Au Spectrum Rare Earths Calvert G 168
Diamonds, base metals Daylight Jack Kirkimbie G 178
Au, Ag, Cu, Sn Ismins Compass Creek G 185
Key to symbols
PD: Project Development A: Adanced Exploration E: Early Stage Exploration G: Grassroots Exploration Opportunities
Northern Territory
Mineral Investment Opportunities
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KGL Resources
Commodity Copper
Project name Jervois
Project maturity Advanced Exploration Company Name KGL Resources Company type ASX listed Code KGL
Company size Market capitalisation $50m at September 2014 Project Details Ownership of the project 100%
Current Project status 25.3mt @ 1.1% Cu, 22 g/t Ag
Location and Size 300 km NE of Alice Springs
Infrastructure plans Copper concentrate will be trucked to Alice Springs and then railed to Darwin for export.
History of project area The project has approximately 1,000 drill holes with the bulk of the work completed by KGL resources over the past few years.
Business development plan
KGL are currently working on a pre-feasibility study which will be completed in November 2014. Drilling is ongoing at the site to upgrade and expand the resource and to target some of the known occurances of lead and zinc at the site.
Company strategy To develop the Jervois project in to a project producing 20 to 30,000 tpa copper plus by product credits.
Target timeline to production
Pre-Feasibility Study 2014 Feasibility study 2015 Construction 2016
Potential production from end 2016
Investment type sought Off take agreement and a sale of a minority interest in the project.
Company contact details Simon Milroy Managing Director KGL Resources
[email protected]
Updated September 2014
Updated September 2014
KGL Resources
COMMODITY: Copper, silver, lead, zinc, gold COMPANY CONTACT DETAILS
Company: KGL Resources
Contact Officer: Simon Milroy
Position: Managing Director
Phone: +617 3071 9033
Fax:
Email: [email protected]
Web: www.kglresources.com.au
PO Address: L7 167 Eagle Street Brisbane Australia 4000 Head Office:
Market Capitalisation: $50m Number of Shares: 140m
ASX Code: KGL
PROJECT DETAILS Project Name: Jervois
Location: 300 km North East of Alice Springs Project Tenements:
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Updated September 2014
MAP SHOWING PROJECT LOCATION
HISTORY OF PROJECT AREA
History of Jervois Exploration and Mining
Following the discovery of weathered outcrops of base metal mineralisation at Jervois in 1929, some small-scale mining of near-surface oxidized ore took place with handpicked ore
transported initially to smelters in South Australia and later to Mt Isa in Queensland for treatment.
Figure 1 Bellbird historical workings
The first systematic exploration at Jervois was undertaken by New Consolidated Goldfields (Australasia) Pty Ltd in the period 1961-1965; subsequently, exploration programmes were carried out by: Petrocarb Mineral Exploration (SA) Pty Ltd (1969-1973) then by a joint venture between Petrocarb and Union Corporation (Australia) Pty Ltd (19731974); Plenty River Mining alone (1980-1983) and then in joint venture with Anaconda (1983-1984) and later with
Normandy Poseidon (1991-1996); Britannia Gold NL alone (1997-1999) and in joint venture with MIM Exploration Pty Ltd (1999-2001).
Exploration by the above companies identified massive and disseminated sulphide mineralisation at a number of localities within a particular unit of a metamorphosed,
predominantly sedimentary sequence, which can be traced discontinuously in outcrop around the ‘J-fold’. The main deposits with surface expression that were delineated are from the north:
Reward, Marshall and Green Parrot on the eastern limb of the J-structure and Bellbird on the
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short western hook of the ‘J’. Other poorly tested zones of base/precious metal sulphide mineralisation are located at Pioneer, North Reward, Sykes and Cox’s Find on the stem of the
‘J’ and at Rockface, Rockpool, Killeen Zinc and Killeen Copper on the curve of the ‘J’ (Figure 16). Petrocarb Mineral Exploration also drill tested six separate zones of scheelite
mineralisation associated with calc-silicate rocks; scheelite is an ore of tungsten. During the period from 1961 to 2001 an estimated 320 percussion and diamond holes were drilled at Jervois, including 50 holes drilled for open pit planning and ore definition purposes at the short- lived Green Parrot mine and some 45 holes drilled to test the scheelite occurrences and mineralisation off the ‘J-structure’. Each of the previous explorers added to the geological knowledge of the area.
Plenty River Mining undertook the only significant mining at Jervois. In 1981 that company commissioned a treatment plant and mine infrastructure to exploit high-grade silver-lead-zinc- copper ore from the Green Parrot deposit. In five months of production during 1982 and 1983, the plant produced 2,000 tonnes (t) of concentrate grading 50.4% lead, 5.4% zinc, 0.6%
copper and 680 gram/tonne (g/t) silver. Mining was suspended in December 1983 due to a sharp metal price fall. It is reported that total production of ore from the Green Parrot open cut was 44,000t grading 1.5% copper, 8.5% lead, 2.5% zinc and 160g/t silver.
Figure 2 Remnants of Plenty River Mining Plant
MIM Exploration Pty Ltd also conducted metallurgical test work on samples from two drill holes (J25 and J27) at the Reward deposit, in order to gain a preliminary indication of the likely recoveries obtainable from a conventional treatment plant. The results show the mineralisation is free milling and concentrates sufficiently well to achieve a +28% copper concentrate at better than 90% recovery.
When Reward Minerals assumed control of the Jervois Project in April 2004, they began the first of a series of drilling campaigns aimed at investigating the established prospects in detail, as well as extending exploration to other parts of the large tenement holding to identify additional prospects. By the end of 2004, 44 RC drill holes (some with diamond core tails) for 4,361m had been completed with the majority of holes directed at the Bellbird, Green Parrot, Reward and Marshall deposits. As a result of the then intense activity nationwide in the mining industry, exploration drilling was hampered by the difficulty in finding a contractor with a suitable drill rig willing to work in this remote area; there was no opportunity to drill any holes in 2005 but the situation later improved somewhat and 39 holes (for 3,843m) were drilled in 2006, 18 holes (for 2,327m) were drilled in 2007, 40 holes (for 6,285m) in 2008, and in 2009, 20 holes (for 3,426m). Five of the RC holes drilled in 2009 are pre-collars to be completed by diamond coring to test the Reward and Bellbird deposits at vertical depths of 300 - 400m.
In 2011 Jinka Minerals conducted a Sub-audio Magnetics (SAM) survey to help identify the structures that were controlling mineralisation within the prospective stratigraphy.
COMPANY MANAGEMENT EXPERIENCE & SKILLS Please refer to our website www.kglresources.com.au CURRENT PROJECT STATUS
Geology
The Jervois mineralisation is contained within the Lower Proterozoic Bonya Schist Formation (1807Ma), which has been folded to form a J-shaped, near isoclinal and steeply north- plunging, synform. The more resistant lithologies crop out as a series of hills that prominently define the J-structure on aerial photographs and satellite images. This distinctive J-shape of the Bonya Schist outcrop in the project area has been interpreted as the result of re-folding of
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Updated September 2014
pre-existing folds and also as a drag feature to a regional fault that passes to the west.
In the Jervois area, the Bonya Schist is interpreted to be derived from a thick sequence of argillaceous to arenaceous sediments with intercalations of limestone that suggest a shallow- marine environment of deposition. Dominant lithologies are now sericite, cordierite, and andalusite or chlorite schist with subordinate biotite-feldspar schist, calc-silicate rock, carbonate rock, amphibolite, magnetite quartzite, massive garnet rock, and quartz-tourmaline rock. Pervasive magnetite, ranging in content from two to twenty percent, extends the length of the J-fold and to the east and north. This mineral is largely responsible for the distinct magnetic signature that reproduces the J-shape of the outcrop pattern on aeromagnetic maps.
Magnetite also preferentially replaces bedded calc-silicate rocks to produce massive ironstone.
The regional metamorphic grade ranges from upper greenschist to middle amphibolite facies.
The schistose sequence is unconformably overlain to the west and northwest by the Georgina Basin sediments of Upper Proterozoic to Devonian age, which form the Jervois Range.
The region has experienced a long and complex structural history and detailed structural mapping has revealed three major deformational events in the Jervois area. Bedrock over much of the area is covered by soil and shallow alluvium with outcrop restricted to the low hills.
The calc-silicate and carbonate-rich lithologies in particular, tend to be silicified and more resistant to weathering and erosion. Rapid changes in rock types and tight isoclinal folding add to the difficulties of geological mapping and only broad correlations are possible within the project area.
PROPOSED FUTURE ACTIVITIES
We are currently working on a pre-feasibility study which is due for completion in November 2014. The study is investigating a 2 million tonne per annum flotation plant producing approximately 100,000 tonnes of copper concentrate per year at a grade of 25% Cu.
A drilling programme is currently underway to infill and upgrade the resource further.
DETAILS OF RESOURCES
The total resource at Jervois is 25.3million tonnes at a grade of 1.14% Cu and 22 g/t Ag as detailed in the table below.
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Updated September 2014
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TNG Limited
Commodity Copper / Gold / Zinc / Silver Project name Mount Hardy
Project maturity Early Stage Exploration Company Name TNG Ltd
Company type Listed on the Australian stock exchange (ASX:TNG) Company size Market capitalisation 120 million at 1 April 2014.
Project Details The project is 100% owned by TNG Ltd.
Current Project status Exploration to date at Mount Hardy has highlighted the presence of surficial and sub-surface copper, Gold, lead and zinc and silver mineralisation.
Location and Size The project area is located approximately 300km NW of Alice Springs along the Tanami Road. The project area is 521 km2 Infrastructure plans The project area straddles the Tanami Road, in south western
NT, and is sealed to within 70km of the project area.
History of project area Mount Hardy copper prospects were discovered in 1935.
NTGS assessed the economic feasibility of the Mount Hardy and Clarke copper deposits from 1968 to 1972.
TNG began exploration in the area in 2012. Geophysical surveys, sampling and drilling have taken place during initial exploration.
Business development plan
Detailed assessment and evaluation of all prospects will take place with the aim of a maiden resource by the end of 2014.
Metallurgical assessment of the mineralisation and a scoping study is planned for 2015.
Company strategy TNG is an Australian resource company focused on the evaluation and development of its Mount Peake vanadium project and realising value from its extensive copper minerals portfolio.
Target timeline to production
Further exploration to grow and further define resource, 2014.
Maiden JORC resource estimate end 2014.
Scoping study 2015.
Company contact details
Paul Burton Managing Director Phone +61 8 9327 0900 Email: [email protected]
Updated September 2014
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TNG Limited
COMMODITY: COPPER – GOLD – ZINC- SILVER
COMPANY CONTACT DETAILS
Company: TNG Limited
Contact Officer: Paul Burton
Position: Managing Director
Phone: +61 8 9327 0900
Fax: +61 8 9327 0901
Email: [email protected]
Web: www.tngltd.com.au
PO Address: PO Box 1126, Subiaco WA 6904
Head Office: Level 1, 282 Rokeby Road, Subiaco WA 6008 Market Capitalisation: 120 million
Number of Shares: 553 million
ASX Code: TNG
PROJECT DETAILS
Project Name: Mount Hardy Project
Location: 300 kms NW of Alice Springs, Northern Territory Project Tenements:
Tenement Area (km2) Grant Expiry
EL 27892 101.76 Granted 4/08/2010 3/08/2016
EL 29219 215.98 Granted 17/09/2012 16/09/2018
EL 28694 203.64 Granted 1/03/2012 28/02/2018
MAP SHOWING PROJECT LOCATION
Figure 1: Location of the Mount Peake Project area.
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HISTORY OF PROJECT AREA
The following exploration has been carried out on the Mount Doreen mapsheet and around the Mount Hardy area:
x Mount Hardy copper prospects were discovered by W.W. Braitling in 1935.
x Uranium Development and Prospecting N.L. carried out diamond drilling in the area in 1956.
x Bureau of Mineral Resources (BMR) conducted aeromagnetic, radiometric and gravity surveys in the 1960s.
x Central Pacific Minerals held AP1722 in the Mount Hardy area from 1967-69.
x NTGS assessed the economic feasibility of the Mount Hardy copper deposits from 1968 to 1972.
x NT Geological Survey and BMR completed 2nd edition mapping of Mount Doreen sheet in the 1990s.
x White Industries conducted exploration on EL 5688 from 1988-90. Rock chip and stream sediment sampling was carried out from Wolfram Hill through to Mount Hardy.
x Bruce and Mules' explored the Silver King area for gold and base metals from 1988- 1991.
x MIM/Roebuck Resources Joint Venture targeted magnetic highs in the early 1990s and explored the Silver King deposit.
x Yuendumu Mining Company/Posgold explored the western parts of the Mount Doreen area from 1992 to 1996, particularly Terry's Find, other targets were 'Buger' and 'Grasshopper'.
x BMR completed airborne magnetic and radiometric surveys in 1993.
x Aberfoyle Resources were granted EL's 8913 and 8608 in late 1994. They undertook ground magnetics surveys and some RAB drilling.
x BHP tested the northern Mount Doreen and southern Mount Theo mapsheets for Cu- Au in the late 1990s.
x Tanami Gold NL explored for Tanami-style gold mineralization and Tennant Creek- style copper mineralization in the Mount Doreen area from 2001 to 2005. The main target areas were the Terry's Find, Mount Hardy and Pyramid Hill Prospects. 7 Rock chip samples returned copper assays of 7032 ppm to 217972 ppm.
x Deep Yellow conducted exploration for uranium in the Mount Hardy area in 2009 and 2010. No other commodities were investigated.
Exploration by TNG Ltd
x A HELITEM survey was conducted over EL 27892 and parts of EL 29219 in July 2012.
A number of target areas were identified and ground EM was undertaken over six sites in August 2012.
x A substantial mapping, soil and rock sampling programme was undertaken in September 2012 and significant pXRF Cu results were returned. Laboratory assaying of the samples confirmed the anomalous results.
x A seven hole RC drilling programme testing EM targets #1, #2, #4 and #5 was completed in November 2012. Targets were only intersected in holes 12MHRC001 and 12MHRC002 though subsequent Downhole Electromagnetic Survey (DHEM) has confirmed the presence of conductors and potential mineralisation close to the remaining holes.
x Gravity and Induced Polarization (IP) surveys have been undertaken in February 2013.
x Additional IP and DHEM undertaken in March 2014 confirming additional high priority targets for drilling.
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COMPANY MANAGEMENT EXPERIENCE & SKILLS Mr Paul Burton – Managing Director
B.Sc. (Geology), M.Sc. (Mineral Exploration), M.Aus.IMM, Fellow of Association of Exploration Geochemists (FAEG) – Exploration Manager and Geologist with > 20 years’ experience in multicommodity exploration.
Mr Paul Burton has over 20 years’ experience in exploration and mining throughout Australia and overseas.
Mr Burton is an Exploration Geologist and Geochemist and previously held the positions of Exploration Manager and Exploration Director with the company. He has managed successful mineral exploration and feasibility study programs for a range of different commodities including base-metals, precious-metals, diamonds and ferrous metals. Previous career appointments include senior executive roles with AngloAmerican/De Beers Ltd, Normandy Mining Ltd and Minotaur Exploration Ltd.
Mr Burton is a graduate of the University of Plymouth, UK (B.Sc Honours Geology), and of McGill University, Canada where he completed the M.Sc in Mineral Exploration. He is a Member of Australian Institute of Mining and Metallurgy, Australian Institute of Company Directors and a Fellow of the Association of Exploration Geochemists.
Mr Kim Grey – Exploration Manager
B.Sc. (Geology), M.Sc. (Economic Geology), and a Member of the Australian Institute of Geoscientists.
Mr Grey has over 15 years’ experience as an exploration geologist, including senior roles with a number of Australian resource companies including Goldminex Resources, Mincor Resources and Norilsk Nickel Australia.
He has been involved in the discovery and delineation of variety of ore deposits both in Australia and internationally, including nickel, gold, porphyry and sediment-hosted copper, heavy mineral sands, base metals, and industrial minerals.
Mr Andy Rodda – Operations Manager
Mr Andy Rodda has more than 30 years’ experience in all facets of mineral exploration, mining and tenement management throughout Australia and overseas.
He has managed successful mineral exploration programs for a range of different commodities including base-metals, precious-metals, mineral sands and ferrous metals.
Mr Rodda has an Advanced Certificate of Engineering (Mech).
Mr Edward Fry – Indigenous and Native Title Consultant
Mr Eddie Fry was a Director of TNG between 2006 and 2011 and has been retained as a consultant to the Company. Mr Fry has extensive experience within the Australian resource sector and is a specialist in Indigenous and Native Title issues.
Mr Fry is Executive Director of Gimbulki Ltd, a Native Title Land access company he
established in 2002 which has provided consulting services to a range of Australian Exploration and Mining Companies including Rio Tinto, Barrack, Ferraus, Transfield Services, Western Desert Resources and Sherwin Iron. During his career he also held senior Executive roles with Normandy Mining Ltd, where he established the company’s Traditional Owner policy, and later was manager of logistics and marketing of Normandy’s base-metal portfolio.
His early employment included involvement with the Aboriginal and Torres Strait Islander Commission (ATSIC) and also the Aboriginal Development Commission.
Mr Fry holds a Diploma in Business Management from Adelaide University and is Chairman of Transfield Services Indigenous Advisory Board and Deputy Chair of the Aboriginal foundation of South Australia.
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Updated September 2014
CURRENT PROJECT STATUS
x TNG Ltd hold in excess of 500km2 of tenure in the Mount Hardy area.
x HELITEM survey completed July 2012.
x Ground EM completed August 2012.
x Field sampling programme undertaken in September-October 2012.
x RC drilling undertaken November 2012, with DHEM completed in late 2012.
x Gravity and IP survey completed over the Browns and Mount Hardy areas in February 2013.
x Diamond drilling programme completed in March-April 2013 on four prospect areas.
x Additional IP and DHEM underway.
PROPOSED FUTURE ACTIVITIES
1. Continued on-ground exploration to identify additional target areas.
2. Follow-up of geophysical survey recommendations and additional HELITEM targets.
3. Maiden resource preparation by end 2014.
4. Metallurgical assessment of resource and scoping study 2015.
EXPENDITURE
REPORTING YEAR EXPENDITURE COMMITMENT
CURRENT EXPENDITURE
2012 - 2013 $151,000 $1.18M
2013 - 2014 $121,000 $100,000
RECENT EXPLORATION HIGHLIGHTS
Exploration to date at Mount Hardy has included a HELITEM survey, field mapping and sampling, ground EM surveys, RC drilling, IP, DHEM and diamond drilling and has highlighted the presence of surficial and sub-surface copper, lead and zinc mineralisation within the tenement area.
A 2100m diamond drill program carried out in March 2013 investigated both the geophysical and geological targets identified in previous exploration.
Mount Hardy Prospect
The Mount Hardy prospect is defined as a 1km x 500m hill with broad oxide copper mineralisation exposed at surface. Three sections were drilled to target depth extensions to the strong surface copper mineralisation outlined in 2012. A total of four holes (13MHDDH001 to 13MHDDH004) were drilled on these sections. All holes were drilled towards the SSE (azimuth 150 degrees) and 45-60 degrees dip. Significant drill results include:
13MHDDH001
x 11.0m at 0.87% Cu from 70m down-hole, including:
o 1.0m at 4.21% Cu from 71.4m down-hole; and o 1.0m @ 1.63% Cu from 73.8m; and
o 0.8m @ 1.05% Cu from 76.5m.
13MHDDH002
x 10.3m at 1.35% Cu from 114.7m down-hole, including:
o 0.9m @ 6.06% Cu from 118.5m;
o 0.8m @ 2.93% Cu from 117.7m;
o 0.6m @ 1.97% Cu from 119.4m; and o 1.0m @ 1.96% Cu from 114.7m.
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13MHDDH003
x 1.60m @ 1.60% Cu from 45.40m, including:
o 0.60m @ 2.92% Cu and 1.15g/t Au from 45.40m x 3.10m @ 1.86% Cu from 61.90m, including:
o 1.00m @ 4.50% Cu and 0.40g/t Au from 62.50m 13MHDDH004
x 6.0m @ 0.54% Cu from 108.0m downhole
o 0.5m @ 0.48 g/t Au from 109.7m down-hole, and o 1.0m @ 9.44 g/t Au from 112.0m down-hole
The presence of gold grades in excess of 9g/t Au, together with fresh hypogene copper mineralisation, is considered to be very encouraging.
Browns Prospect
The Browns prospect is defined by both a 500m zone of surface copper oxide mineralisation and an adjoining significant IP anomaly. Holes 13MHDDH005 to 13MHDDH009 were drilled at the original Browns Prospect, which was outlined by mapping and sampling conducted by TNG in late 2012.
Holes were drilled on two sections, targeting depth extensions to the surface mineralisation below a large outcropping quartz vein with significant malachite (copper oxide), and an area of old workings. Sampling in this area in late 2012 returned rock chip ICP results of up to 38.9%
Cu. Significant drill results include:
13MHDDH005
x 5.0m @ 0.58% Cu from 60.0m down-hole, including o 1.0m @ 1.01% Cu from 62.0m down-hole; and x 0.5m @ 1.39% Cu from 63.0m down-hole; and
13MHDDH008
x 5.4m @ 0.62% Cu from 14.5m down-hole.
A diamond hole designed to test the IP anomaly outlined just to the south of the Browns Prospect (13MHDDH015) returned the most significant results to date. This hole intersected a broad zone of mineralisation with outstanding zinc grades and strong copper and lead values:
x 13.0m @ 1.17% Cu, 1.82% Zn and 0.46% Pb from 74m down-hole, including o 1.0m @ 3.86% Cu, 11.75% Zn, 2.09% Pb from 77m down-hole
Blind at surface and plunging to the WNW there is significant potential for more mineralisation within this feature and further drilling is required to define this. A step out/extensional IP survey is currently underway.
EM Target 1
Holes 13MHDDH010 and 13MHDDH011 were drilled to test significant HELITEM conductors outlined at EM Target #1 and confirmed by RC drilling and subsequent DHEM surveying.
13MHDD010 successfully pierced the conductor where a broad zone of high grade Cu-Zn-Pb- Ag mineralisation was intersected returning 21.0m @ 0.46% Cu, 3.5% Zn, 1.91% Pb and 36 g/t Ag, from 211m down-hole. Individual samples within this zone returned maximum values of 1.88%Cu, 12.05% Zn, 7.25% Pb, and 130g/t Ag.
Diamond drill-hole 13MHDDH011 targeted a strong off-hole EM conductor defined from DHEM.
A small zone of multi-element mineralisation was intersected with maximum results of 0.1% Cu, 3.5% Zn and 1.2% Pb.
Additional DHEM is currently underway to identify the mineralised trend and locate further targets for drilling.
Base Metals
EM Target 2
Diamond drill hole 13MHDDH012 was designed to test the off-hole EM conductor outlined from hole 12MHRC002. The conductor was successfully pierced and intersected significant base metal sulphides over a 25m interval, including maximum values of 5.9% Cu, 10.5 % Zn, 3.4%
Pb and 55 g/t Ag.
The intersections in the three holes define a plane dipping steeply to the north-west, parallel to and just above the modelled plate. This mineralisation has now been outlined over a 50 x 50m zone and is open in all directions.
This anomaly requires further DHEM and drilling.
EM Target 4
Hole 13MHDDH013 at EM Target 4 tested the off-hole plate modelled and interpreted from hole 12MHRC003 (which was designed to test the ground EM modelled plate), and intersected the plate in the lower central area. Results included 1.0m @ 2.0% Cu, and DHEM will determine if further drilling is required.
Mount Hardy IP Anomaly
Hole 13MHDDH014 was designed to intersect the down plunge portion of the IP anomaly at Mount Hardy. Significant mineralisation had already been outlined in the up-dip position of the IP anomaly in holes 13MHDDH001 through 13MHDDH004.
Minor mineralisation was intersected in this drill hole, with 6.0m @ 0.7% Cu, including 1.0m @ 2.0% Cu. The IP anomaly remains open and will be further assessed by down-hole geophysical methods.
Relogging of BMR 1968 Drillcore
Re-logging and sampling of BMR diamond drill core from 1968 has also highlighted the extent of mineralisation at Mount Hardy as well as confirming the distribution and type of supergene and hypogene mineralisation. Best intersections are summarised in Table 2.
Table 2: Best intersections from 1968 BMR diamond drill core.
Petrographic descriptions of both the diamond core and the RC chips from the recent programme have provided valuable information into the sulphide/mineralisation assemblage, genesis and the nature of the host. Both the surrounding schist and mineralised hydrothermal quartz have experienced multiple stages of tectonism and metamorphism with associated quartz-sericite-pyrite alteration. The analysis suggests a hydrothermal mineralisation assemblage with possible granitic affinities.
Additional EM targets identified in the 2012 HELITEM survey are currently being tested with IP geophysical surveys, along with additional DHEM on diamond holes drilled during 2013. The exploration to date has resulted in the generation of multiple targets for continued investigation during the 2014/15 field program.
BUSINESS DEVELOPMENT PLAN
This project is emerging as a large-scale, polymetallic-style project requiring significant further exploration. Detailed assessment and evaluation of all prospects will continue to take place with the aim of a maiden resource by the end of 2014. Metallurgical assessment of the reserve and a scoping study is planned for 2015.
HoleNumber From To Thickness(m) Cu%
68MHDDH002 23.5 26.1 2.6 1.69
68MHDDH003 37.5 44.5 7.0 1.64
Including 38.7 42.06 3.3 5.7
68MHDDH004 6.9 17.5 10.7 4.1
Including 15.8 17.06 1.2 10.6
