Northern Territory
Mineral Investment Opportunities
October 2014
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: [email protected]
www.core.nt.gov.au
© 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 ofAustralia 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 financial and legal advice which specifically 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 verified 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.
2
Northern Territory Mineral Investment Opportunities
Project Status Summary
STATUS
Grassroots Exploration Opportunities
Bowgan Minerals
Bowgan Minerals
Crossland Strategic Metals
Red Metal
Red Metal
Spectrum Rare Earths
Daylight Jack
Ismins
Early Stage Exploration
Crossland Strategic Metals
Outback Metals
Outback Metals
Spectrum Rare Earths
Spectrum Rare Earths
Thundelarra Exploration
TNG Ltd
Uranium Equities
Advanced Exploration
Alligator Energy
Crossland Strategic Metals
Deep Yellow
KGL Resources
Minemakers
Rum Jungle Resources
Rum Jungle Resources
Thor Mining
Project Development
Arafura Resources
TNG Limited
Thor Mining
Tellus Holdings
COMMODITY
PROJECT
Au, Cu, Ag
U, Au, base metals
REE, U
Cu, Au, NI
Cu, Au
Base metals, Au
Diamonds and base metals
Au, Ag, Cu, Sn
Neutral Junction
Bowgan
Mount Stafford
Irindina
Tennant Creek
Calvert
Kirkimbie
Compass Creek
U, Au, base metals
Sn, W, Au, Ag, Cu
SN (Cu, Au)
REE
REE, U
U
Cu
U, PGE, Au
Chilling
Maranboy/Yeuralba
Mt Wells
Stromberg and Skyfall HREE
District
Quantum
Ngalia Basin
Mount Hardy
Nabarlek
U
REE
U
Cu, Zn, Ag, Pb
P (P2O5)
Potash
P (P2O5)
Au
Tin Camp Creek
Charley Creek
Napperby
Jervois
Wanarah
Karinga Lakes
Ammaroo
Spring Hill
REE
V, Ti, Fe
W, Mo
NaCl
Nolans
Mount Peake
Molyhil
Chandler Salt Mine
Northern Territory Mineral Investment Opportunities
3
Project Status Definitions
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.
Exploration results have been sufficient to estimate a Mineral
Resource or Ore Reserve according to the JORC Code.
Advanced exploration
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.
4
Northern Territory Mineral Investment Opportunities
Northern Territory
Mineral Investment Opportunities
COMMODITY
URANIUM
U
U, Au, base metals
UPDATED
U
UPDATED
U
UPDATED
U, PGE, Au
RARE EARTHS
UPDATED
REE
REE
REE
COMPANY
PROJECT
Alligator Energy
Crossland Strategic Metals
Deep Yellow
Thundelarra Exploration
Uranium Equities
Tin Camp Creek
Chilling
Napperby
Ngalia Basin
Nabarlek
Arafura Resources
Crossland Strategic Metals
Spectrum Rare Earths
Nolans
Charley Creek
Stromberg and Skyfall HREE
District
Quantum
REE, U
Spectrum Rare Earths
BASE METALS
UPDATED
Cu, Zn, Ag, Pb
KGL Resources
UPDATED
Cu
TNG Ltd
FERROUS METALS & FERROALLOYS
V, Ti, Fe
TNG Limited
UPDATED
UPDATED
W, Mo
Thor Mining
GOLD
Au
Thor Mining
UPDATED
U, Au, PGE
Uranium Equities
PHOSPHATE, POTASH
P (P2O5)
Minemakers Limited
UPDATED
UPDATED
Potash
Rum Jungle Resources
UPDATED
P (P2O5)
Rum Jungle Resources
SALT
NaCl
Tellus Holdings
UPDATED
TIN
Sn, W, Au, Ag, Cu UPDATED
Outback Metals
UPDATED
Sn (Cu, Au)
Outback Metals
Grassroots Exploration Opportunities
Au, Cu, Ag
Bowgan Minerals
U, Au, base metals
Bowgan Minerals
REE, U
Crossland Strategic Metals
Cu, Au, NI
Red Metal
Cu, Au
Red Metal
Base metals, Au
Spectrum Rare Earths
Diamonds, base metals NEW Daylight Jack
Au, Ag, Cu, Sn
Ismins
NEW
STATUS
PAGE
A
E
A
E
E
6
13
20
24
31
PD
A
E
39
43
51
E
57
Jervois
Mount Hardy
A
E
66
72
Mount Peake
Molyhil
PD
PD
79
86
Spring Hill
Nabarlek
A
E
90
93
Wonarah
Karinga Lakes
Ammaroo
A
A
A
101
108
114
Chandler Salt Mine
PD
119
Maranboy/Yeuralba
Mt Wells
E
E
125
132
Neutral Junction
Bowgan
Mount Stafford
Irindina
Tennant Creek
Calvert
Kirkimbie
Compass Creek
G
G
G
G
G
G
G
G
138
147
153
158
163
168
178
185
Key to symbols
PD:
Project Development
A: Adanced Exploration E: Early Stage Exploration G: Grassroots Exploration Opportunities
Northern Territory Mineral Investment Opportunities
5
Base Metals
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
Infrastructure plans
300 km NE of Alice Springs
Copper concentrate will be trucked to Alice Springs and
then railed to Darwin for export.
The project has approximately 1,000 drill holes with the
bulk of the work completed by KGL resources over the
past few years.
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.
To develop the Jervois project in to a project producing
20 to 30,000 tpa copper plus by product credits.
Pre-Feasibility Study 2014
Feasibility study 2015
Construction 2016
Potential production from end 2016
History of project area
Business development
plan
Company strategy
Target timeline to
production
Investment type sought
Company contact details
Off take agreement and a sale of a minority interest in
the project.
Simon Milroy
Managing Director
KGL Resources
[email protected]
Updated September 2014
66
Northern Territory Mineral Investment Opportunities
Base Metals
KGL Resources
COMMODITY: Copper, silver, lead, zinc, gold
COMPANY CONTACT DETAILS
Company:
Contact Officer:
Position:
Phone:
Fax:
Email:
Web:
PO Address:
Head Office:
Market Capitalisation:
Number of Shares:
ASX Code:
KGL Resources
Simon Milroy
Managing Director
+617 3071 9033
[email protected]
www.kglresources.com.au
L7 167 Eagle Street Brisbane Australia 4000
$50m
140m
KGL
PROJECT DETAILS
Project Name: Jervois
Location: 300 km North East of Alice Springs
Project Tenements:
Updated September 2014
Northern Territory Mineral Investment Opportunities
67
Base Metals
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
Updated September 2014
68
Northern Territory Mineral Investment Opportunities
Base Metals
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 shortlived 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-zinccopper 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 northplunging, 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
Updated September 2014
Northern Territory Mineral Investment Opportunities
69
Base Metals
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 shallowmarine 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.
Updated September 2014
70
Northern Territory Mineral Investment Opportunities
Base Metals
Updated September 2014
Northern Territory Mineral Investment Opportunities
71
Base Metals
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.
The project area is located approximately 300km NW of Alice
Springs along the Tanami Road. The project area is 521 km2
Location and Size
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
72
Northern Territory Mineral Investment Opportunities
Base Metals
TNG Limited
COMMODITY: COPPER – GOLD – ZINC- SILVER
COMPANY CONTACT DETAILS
Company:
Contact Officer:
Position:
Phone:
Fax:
Email:
Web:
PO Address:
Head Office:
Market Capitalisation:
Number of Shares:
ASX Code:
TNG Limited
Paul Burton
Managing Director
+61 8 9327 0900
+61 8 9327 0901
[email protected]
www.tngltd.com.au
PO Box 1126, Subiaco WA 6904
Level 1, 282 Rokeby Road, Subiaco WA 6008
120 million
553 million
TNG
PROJECT DETAILS
Project Name: Mount Hardy Project
Location: 300 kms NW of Alice Springs, Northern Territory
Project Tenements:
Tenement
EL 27892
Area (km2)
101.76
EL 29219
215.98
Granted 17/09/2012
16/09/2018
EL 28694
203.64
Granted 1/03/2012
28/02/2018
Grant
Granted 4/08/2010
Expiry
3/08/2016
MAP SHOWING PROJECT LOCATION
Figure 1: Location of the Mount Peake Project area.
Northern Territory Mineral Investment Opportunities
73
Base Metals
HISTORY OF PROJECT AREA
The following exploration has been carried out on the Mount Doreen mapsheet and around the
Mount Hardy area:
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
Mount Hardy copper prospects were discovered by W.W. Braitling in 1935.
Uranium Development and Prospecting N.L. carried out diamond drilling in the area in
1956.
Bureau of Mineral Resources (BMR) conducted aeromagnetic, radiometric and gravity
surveys in the 1960s.
Central Pacific Minerals held AP1722 in the Mount Hardy area from 1967-69.
NTGS assessed the economic feasibility of the Mount Hardy copper deposits from
1968 to 1972.
NT Geological Survey and BMR completed 2nd edition mapping of Mount Doreen
sheet in the 1990s.
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.
Bruce and Mules' explored the Silver King area for gold and base metals from 19881991.
MIM/Roebuck Resources Joint Venture targeted magnetic highs in the early 1990s
and explored the Silver King deposit.
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'.
BMR completed airborne magnetic and radiometric surveys in 1993.
Aberfoyle Resources were granted EL's 8913 and 8608 in late 1994. They undertook
ground magnetics surveys and some RAB drilling.
BHP tested the northern Mount Doreen and southern Mount Theo mapsheets for CuAu in the late 1990s.
Tanami Gold NL explored for Tanami-style gold mineralization and Tennant Creekstyle 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.
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.
74
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.
Northern Territory Mineral Investment Opportunities
Base Metals
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.
Updated September 2014
Northern Territory Mineral Investment Opportunities
75
Base Metals
CURRENT PROJECT STATUS
x
x
x
x
x
x
x
x
TNG Ltd hold in excess of 500km2 of tenure in the Mount Hardy area.
HELITEM survey completed July 2012.
Ground EM completed August 2012.
Field sampling programme undertaken in September-October 2012.
RC drilling undertaken November 2012, with DHEM completed in late 2012.
Gravity and IP survey completed over the Browns and Mount Hardy areas in February
2013.
Diamond drilling programme completed in March-April 2013 on four prospect areas.
Additional IP and DHEM underway.
PROPOSED FUTURE ACTIVITIES
1.
2.
3.
4.
Continued on-ground exploration to identify additional target areas.
Follow-up of geophysical survey recommendations and additional HELITEM targets.
Maiden resource preparation by end 2014.
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.
Updated September 2014
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Northern Territory Mineral Investment Opportunities
Base Metals
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-PbAg 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.
Updated September 2014
Northern Territory Mineral Investment Opportunities
77
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.
HoleNumber
68MHDDH002
68MHDDH003
Including
68MHDDH004
Including
68MHDDH006
From
23.5
37.5
38.7
6.9
15.8
9.44
16.0
To
26.1
44.5
42.06
17.5
17.06
10.9
19.2
Thickness(m)
2.6
7.0
3.3
10.7
1.2
1.5
3.2
Cu%
1.69
1.64
5.7
4.1
10.6
27.2
1.95
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.
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Northern Territory Mineral Investment Opportunities