TIVAN LIMITED — Interim / Quarterly Report 2006

Oct 30, 2006

Tennant Creek Gold LIMITED

QUARTERLY REPORT 30 SEPTEMBER 2006

HIGHLIGHTS

First 7 holes of resource drilling program at Manburrum Sandy Creek Main Zone return significant high grade intercepts within primary sulphides at shallow depths including:

11m			@ 12.80% Pb, 0.31% Zn and 47.55 ppm Ag from 19m and
13 m			@ 15.41% Pb, 0.84% Zn and 62.46 ppm Ag from 32m (MRC01)
22m			@ 5.53% Pb, 2.24% Zn and 23.18 ppm Ag from 29m (MRC04)
18m			@ 9.64% Pb, 1.92% Zn and 24.8 ppm Ag from 30 m (MRC05)
9m			@ 5.68% Pb, 2.60% Zn (Ag pending) from 37m (MRC33)
13 m			@ 9.34% Pb, 2.96% Zn (Ag pending) from 47m (MRC34)
27m			@ 2.34% Pb, 3.72% Zn and 13.44 ppm Ag from 81m (MRC46)

• Sandy Creek Main Zone RC drilling program approximately 65% completed with ٠ 7,200m drilled in 50 holes to date
• Significant extension of known stratabound Zinc dominant mineralisation on $\bullet$ western down dip side of Main Zone identified from drill chip logging and Niton XRF analysis. High grade Zinc mineralisation defined over a 400m x 150m zone open to the west and to the north. Drilling within this zone is continuing.

Tennant Creek Gold LIMITED

www.tennantcreekgold.com.au

(ABN 12 000 817 023)

Level 1 282 Rokeby Road Subiaco Western Australia 6008

Telephone: + 618 9327 0900 Facsimile: + 618 9327 0901 Website: www.tennantcreekgold.com.au Email: corporate@tnqltd.com.au Contact: Neil Biddle, Managing Director

EXPLORATION REPORT

MANBARRUM ZINC-LEAD-SILVER PROJECT

The Manbarrum Project is located in the Northern Territory 70 kilometres north east of Kununurra.

The granted tenements consist of an Exploration Licence and an Authority to Prospect under Section 178 covering a combined area of over 200 square kilometres. An additional 2 Exploration Licences have been applied for and complete coverage of the Bonaparte Shelf Margin where widespread Mississippi Valley Type Zinc-Lead-Silver mineralisation has been identified along a 50 kilometre strike length.

RC Drilling Program

RC drilling commenced in mid September at Sandy Creek Main Zone and to date 7,219m has been completed in 50 holes.

The program has been an outstanding success with high grade Lead mineralisation confirmed on the eastern margin of Main Zone along a 350m strike length, open to the north, which merges down dip to the west into stratabound zinc dominant mineralisation. The mineralisation is almost exclusively contained within a $\sim$ 100m thick quartz-sandy carbonate unit interpreted as a unit of the Lower Carboniferous Burt Range Formation.

The zinc dominant zone is considerably larger than previously identified and to date is drill indicated over an area 150m wide x 400 m along strike with an average true thickness of approximately 50m. The zone remains open down dip to the west and down plunge to the north.

Significant Sphalerite (Zinc Sulphide) and Galena (Lead Sulphide) have been recorded in most holes drilled to date and Niton XRF analysis has recorded high grade Zinc where Sphalerite is significant.

The only assay results received so far are from 7 holes drilled on the eastern margin and these are tabled below:

Sandy Creek Prospect Significant RC Drill Intersections Oct 2006
Hole No.	AM CHAZOT Ordinates	សាស	Azhartan	a Kolonia Debilik	Exem (OS)	533 (GB)	Interectiv Cavit	ri SA	20%	23 pom
MRC 01	520725	-90		100	19	30	11	12.80	0.32	47.55
	8297050				32	45	13	15.41	0.84	62.46
MRC 04	520725	-90			29 180	51	22	5.53	2.24	23.18
	8297100
MRC 05	520750	-60	269	100	30	48	18	9.64	1.92	24.8
	8297100
MRC 07	520750	-90		150	53	57	4	2.80	2.53	9.25
	8297200
MRC 46	520775	-60	270	130	81	108	27	2.34	3.72	13.44
	8297250
MRC 33 MRC 34	520737	-60	269	100	37	46	9		2.60	P
	8297156							5.68
	520769 8297149	-60	269	130	47	60	13	9.34	2.96	₽

$P = Pending$

The Main Zone drilling program has been extended to test for extensions of mineralisation to the west and north of Main Zone. It is anticipated an initial resource estimate for Main Zone will be calculated after the completion of the 2006 drilling. The planned North East IP anomaly drilling is now postponed until next season.

Drilling is expected to continue until mid November and is scheduled to resume April 2007.

Induced Polarisation and Gravity Surveys

Gravity surveys and modelling over the granted tenements were completed during the Quarter.

A detailed IP survey over significant gravity anomalies is nearing completion.

Numerous anomalies have been identified from both surveys and will be prioritised for follow up during the 2007 drilling program.

Main Zone Geology and Mineralisation

• 1. Saprolitic clay (20 to 22m thick)

• The saprolitic clay layer is a plastic, partly plucky, limonitic and haematitic, in places mottled clay probably after in situ host rock. It is only near the base that the clay layer can be seen to gradually become less weathered and showing the fabric of the protolith below. The saprolitic clay above the quartz-sandy carbonate rock are commonly sandy due to the residual quartz grains.

• 1. Ouartz-sandy carbonaceous calcareous siltstone (> 15m thick)
• The quartz-sandy carbonaceous calcareous siltstone unit is recognised in hole MRC019 (westernmost hole). It is a dark grey sandy moderately carbonaceous siltstone unit. It has a massive to moderately bedded appearance.
• 1. Carbonaceous calcareous shaly siltstone ( $\sim$ 20m thick)
• The carbonaceous calcareous shaly siltstone unit is a moderate to finegrained slaty relative soft rock. It has grey-black colour and maybe pyretic in places. It is thin bedded and weakly calcareous.
• 1. Sandy carbonaceous calcareous siltstone (> 15 to 20m thick)
• The sandy carbonaceous calcareous siltstone unit is a dark grey, more massive and poorly bedded medium to coarse siltstone with occasional quartz sand grains. The unit is transitional unit to the underlying quartz sandy carbonate unit.

The above units 4 to 7 are interpreted to represent sub-facies of the Milligan's Formation. They are the Hanging wall to the mineralisation at Sandy Creek.

• 1. Ouartz-sandy carbonate unit ( $\sim$ 100m thick)
• The quartz-sandy carbonate unit is a medium to coarse-grained, well packed rock with a high percentage of well-rounded as well as highly angular clear quartz grains and occasionally feldspars. The matrix is composed of carbonate material. It is massive in appearance and has a grev colour.
• 1. Silty carbonate unit (>70m thick)
• The silty carbonate unit is a medium to coarse-grained, occasionally feldspatic silty carbonate rock. It has a bedded appearance and a darker grey colour than the unit above. The top of the unit is logged as the absence of sand size quartz grains. This unit is the lower most lithostratioraphic intersection.

Based on sectional interpretations the entire stratigraphic succession appears to be dipping at approximately 30 to 34° to the west.

Mineralisation

• 1. Type of mineralisation

• Sandy Creek deposit is a sphalerite-galena-pyrite type mineralisation. It is almost exclusively a sulphide primary deposit although some secondary zinc mineralisation may be present in the supergene zone. No lead sulphates (anglesite) or carbonates (cerrusite) have been observed.

• 1. Occurrence of mineralisation
• The mineralisation at Sandy Creek deposit is predominantly hosted by the quartz-sandy carbonate unit. In places, the mineralisation appears to extend into the underlying silty carbonate unit. High grade galena mineralisation has been intersected in two holes in the saprolitic clays immediately above the main host unit. This zone is also likely to contain zinc oxide mineralisation (e.g., smithonite)
• 1. Style of mineralisation
• RC rock chips suggest that the predominant style of mineralisation is host rock carbonate matrix replacement and subordinately stringer and dissiminated-style sulphides. In its extreme form the entire rock matrix is replaced by massive sulphides with clear quartz grains floating in base metal sulphides. Some open-space filling-style mineralisation is indicated by stalagmites made of sulphides observed within a zone of massive sulphides.
• 1. Ore paragenesis
• Open space-filling mineralisation suggests that the sequence of ore-stage mineral precipitation commences with galena followed by sphalerite, pyrite and ore stage calcite and amorphous silica.
• 1. Structure
• Structural observations are very much obliterated by the nature of rock $\bullet$ clips. While there was no direct evidence of veining and brecciation observed, it can not be excluded that post depositional faults has affected the area. Up to 10 m wide intervals of oxidised rock chips have been observed amongst fresh rock which may suggest weathering along faulted rock.
• 1. Alteration
• Pervasive silica alteration is observed to surround and be associated with $\bullet$ sulphide mineralisation. While silicification is most notable both the quartz sandy carbonate rock and the underlying silty carbonate rock are probably partially recrystallised dolomites. Petrology will shed more light on these deposit aspects.

Exploration Model

Sandy Creek Main Zone

Sandy Creek Main Zone deposit is interpreted, following these preliminary observations to be a "stratabound carbonate matrix replacement-type zinc-lead deposit'.

Global Examples:

• 1. SE Missouri MVT district, USA
• 1. Elements of Irish-type deposits, Ireland.
• 1. Tri State district, USA

OTHER TENEMENTS

Spring Hill Project

Spring Hill is located approximately 200 kilometres south of Darwin in the historic Pine Creek gold field in the Northern Territory.

In April TNG sold the Spring Hill tenements to Pan Resources Ltd for \$2,850,000. This sale is conditional upon Pan Resources Ltd gaining admission to the London Stock Exchange before 31 December 2006. The consideration is for \$600,000 in cash and the balance in shares in Pan Resources Ltd upon listing.

Tennant Creek Gold-Copper-Bismuth Prospects

TNG has an interest in several granted mining and exploration tenements in the immediate vicinity of the town of Tennant Creek. These tenements contain first order Tennant Creek-style magnetic ironstone targets with the potential to host gold and gold-copper-bismuth deposits.

An offer for these tenements is currently under consideration.

Explorer, Rover and McClaren Creek Gold-Copper-Bismuth Prospects

TNG has an interest in a four exploration licences 50-80km south of the Tennant Creek Township in Central Australia. The exploration licences covers an area in excess of 2500 square kilometres and contain numerous first order Tennant Creek-style magnetic ironstone targets with the potential to host gold, and gold-copper-bismuth deposits.

Prospects are hosted within the Warramunga Formation and have the same magnetic trend and magnitude as some of the world-class gold and gold-copper-bismuth deposits in the Tennant Creek Inlier.

No exploration has been conducted during the Quarter.

Mount Peake

Mount Peake is located in the Arunta Province 80 kilometres north east of Alice Springs. Airborne magnetic surveys have indicated possible ultramafic intrusion hosted nickel targets.

No exploration was carried out in the quarter.

Tanami East

Tanami East, also known as Goddard's Prospect, hosts significant malachite mineralisation outcropping over a strike length of 1,200 metres. Numerous values over 1% Cu and 100 ppb Au were obtained from rock chip samples carried out during the 1970s and the area is considered to have exploration potential for copper-gold deposits.

No exploration was carried out in the quarter.

Other Northern Territory Tenements

TNG holds several other prospects in the Northern Territory. These prospects are in various stages of exploration and have not been specifically mentioned as only minor or nil work was completed during the quarter.

Quarterly Report September 2006

Cawse Extended

The OM Group Inc. (OMG) owns and manages the Cawse Nickel-Cobalt Operation with OMG and TNG jointly owning the adjacent Cawse Extended Project. TNG's interest in the Cawse Extended Project is 20% free-carried to production, convertible at TNG's election to a 2% net smelter return.

TNG has also entered into a separate agreement with OMG for a wet tonne royalty payment, which replaces the current agreement only for ore mined from the Unicorn Pit and transported to the Cawse ROM pad. The Agreement has been structured to allow for variations in the nickel price and the AUD/USD exchange rate such that the wet tonne payment is variable within the range AU\$0.50/wt and AU\$0.90/wt.

TNG has been advised by OMG that mining at the Unicorn Pit had been severely disrupted due to a shortage of tyres for the mining equipment. TNG has since been informed that it is likely there will be only limited mining at Cawse extended for the remainder of 2006.

There was no royalty payment for the September Quarter.

Other Western Australian Tenements

TNG holds an interest in other tenement groups, however, in each case, the Company does not contribute towards exploration expenditure as the projects are subject to joint venture or options for sale. These projects include Kintore East and McTavish.

After the end of the quarter the Duplex Hill tenements, which were subject to an option were sold for \$80,000.

CORPORATE

Investments

TNG holds investments in Thor Mining PLC (Thor - AIM and ASX: 'THR') and Batavia Mining Limited (Batavia - ASX: `BTV'). TNG continues to focus on these two investments.

Thor Mining PLC (AIM and ASX code: "THR")

TNG holds 15.1 million shares in Thor, representing approximately 14% of the issued capital.

A Definitive Feasibility Study for the Molyhil Project is due for completion during the December Quarter.

The Thor web page is:

MINING PLC

www.thormining.com.

Batavia Mining Limited (ASX code: "BTV")

TNG holds 81,466,157 million shares in Batavia representing approximately 14.28% of the issued capital.

A Bankable Feasibility Study for the flagship Deflector Deposit is expected to be completed during the December Quarter.

The Batavia web page is:

MINING LIMITED www.bataviamining.com.au.

Yours faithfully TENNANT CREEK GOLD LTD

Neil Biddle Managing Director

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Neil Biddle, who is a Member of The Australasian Institute of Mining and Metallurgy. Neil Biddle is a Director of Tennant Creek Gold Limited. Neil Biddle has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Neil Biddle consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Australian Stock Exchange Listing

John W Barr	Chairman	Shares:	TNG
Neil Biddle	Managing Director	Options	TNGO
Michael Bowen	Non-Executive Director	European Stock Exchange Listings
Terry Smith	Non-Executive Director	Frankfurt	A0B60K
		Berlin	A0B60K
Chief Financial Officer		Munich	A0B60K
Damian Delaney		Stuttgart	A0B60K
Shareholder Enquiries
Damian Delaney
Contact		Major Shareholders
Telephone:	(08) 9327 0900
Facsimile:	$(08)$ 9327 0901	ANZ Nominees Limited	18.4%
		RAB Special Situations (Master) Fund	15.9%
		Limited
Email:	corporate@tennantcreekgold.com.au	Westpac Custodian Nominees Limited	15%
Website:	www.tennantcreekgold.com.au	John W Barr	8%
		Neil G Biddle	5%
Share Registry		Capital Structure
	Computershare Investor Services Pty Ltd	TNG. Ordinary Shares	101,519,091
	Level 2, 45 St George's Terrace	Options: 30/4/07 (Unlisted)	7,000,000
PERTH WA 6000		Options: 31/5/07 TNGO.	63,573,314
Telephone:	$(08)$ 9323 2000	Options: 31/5/07 (Unlisted)	2,000,000
Facsimile:	(08) 9323 2033