TIVAN LIMITED — Interim / Quarterly Report 2007

Jan 30, 2007

QUARTERLY REPORT

DECEMBER 2006

HIGHLIGHTS

Manbarrum Project, Northern Territory (100%)

• Major zinc-lead-silver deposit confirmed at Manbarrum following $\bullet$ completion of 62- hole Phase 1 RC resource drilling program.
• Continuous, stratabound zinc-dominant mineralisation defined over a 450m by 250m zone at Sandy Creek, with potential for a large tonnage zinc-lead-silver resource.
• . All assay results now received. Zn equivalent intersections reported during the quarter give the following significant widths:

110m	⋒	5.91 %	Zn eq
85m	@	5.46 %	Zn eq
66m	⋒	4.67 %	Zn eq
51m	⋒	5.09%	Zn eq
33 m	@	4.57 %	Zn eg
29m	⋒	4.35 %	Zn eq
25m	@	5.50 %	Zn eq
67m	⋒	2.25 %	Zn eq

Significant average Zn intersections within the Zn equivalent mineralised envelope include:

Holesto	HITRAICS Cii#	※ リネグル	ie tez	LXI 089386	KATER (11978
MRC056	20	3.15	5.97	29.1	5.14
MRC038	28	7.42	0.15	1.68	7.47
MRC038		5.39	0.58	1.70	5.58
MRC023	57	4.08	0.16	1.91	4.14
MRC023		10.17	0.52	10.29	10.34
MRC020	14	4.37	5.13	11.36	6.08
MRC017	19	6.32	1.22	10.37	6.73
MRC013	51	4.97	0.34	6.94	5.09
MRC012	110	5.73	0.53	4.66	5.91

Note: Zn eq excludes Ag

• Sandy Creek mineralisation commences at shallow depths (from 30 m) $\bullet$ and remains open at depth in several holes and to the south, north and west.
• . Zinc-dominant nature of the mineralisation confirmed with a zinc: lead ratio of approximately 20:1 and significant silver grades also occurring throughout mineralised zone.
• $\bullet$ Initial JORC resource estimate for Sandy Creek currently in preparation and targeted for release in early February 2007.
• . Planning well advanced for an intensive 2007 exploration program including in-fill and extension drilling at Sandy Creek and targeting of other key zones with the objective of delineating multiple deposits.
• Experienced geologist and geochemist, Mr Paul Burton, appointed as $\bullet$ Exploration Manager to lead the 2007 resource drilling program at Manbarrum.
• Global consulting group CSA Australia Limited appointed as Manbarrum Project Manager.

www.tennantcreekgold.com.au

Level 1 282 Rokeby Road, Subiaco Western Australia 6008

	Telephone: + 618 9327 0900
Facsimile:	+ 618 9327 0901
Website:	www.tennantcreekgold.com.au
Email:	corporate@tngltd.com.au

Contact: Neil Biddle, Managing Director

Overview

During the December Quarter, Tennant Creek Gold Limited (ASX: TNG - "TNG") completed the first comprehensive drilling program at its 100%-owned Manbarrum Zinc-Lead-Silver Project in the Northern Territory, having concluded all required access and heritage arrangements over the previous 18 months.

The initial Phase 1 drilling program has been very successful, with all results now received. The exploration strategy was to focus on the centrally located Sandy Creek zone of mineralisation, which was explored previously by companies including Aguitaine and BHP-Billiton. This first drilling program has confirmed the presence of a substantial zone of stratabound, zinc-dominant mineralisation at Sandy Creek over an initial 450m by 250m zone, including a sub vertical zone intersected in the southern part of the deposit.

A resource estimate for this zone is currently in preparation and will form the basis of TNG's subsequent exploration and development activities during 2007. This will include a substantially expanded exploration program designed to confirm the potential of the Manbarrum Project to host multiple MVT (Mississippi Valley Type) deposits of similar or greater scale than Sandy Creek.

The Company's objective is to delineate a substantial inventory of strategic zinc-leadsilver resources at Manbarrum in 2007 with the potential to add significant value for TNG shareholders.

$1.0$ 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 these complete coverage of the Bonaparte Shelf Margin, where widespread Mississippi Valley Type (MVT) zinc-leadsilver mineralisation has been identified along a 50 kilometre strike length over an extensive exploration history.

During the (December) Quarter, the Company completed ground geophysics and an intensive Phase 1 RC drilling program along the main mineralised Sandy Creek prospect (refer Map 1.) This represented the first comprehensive exploration program at Manbarrum in over a decade and utilised state-of-the-art modern exploration techniques and methodologies.

The exploration philosophy was to focus initially on the known zone of mineralisation at Sandy Creek, which included numerous historic drill intersections and a pre-JORC Code resource estimate.

Assay results have now been received for all drill holes and work has commenced on a preliminary JORC resource estimate for the Sandy Creek zone targeted for completion in early February 2007.

A detailed technical report compiled by the Manbarrum Project Manager, Dr Simon Dorling (from CSA Australia), is appended to this Quarterly Report.

2006 Resource Drilling Program

The Phase 1 reverse circulation (RC) drilling program was completed in mid-November with a total of 9.471 metres drilled in 62 holes. Final results have now been received for all 62 holes.

Excellent results were returned from the drilling, with the majority of holes intersecting significant zinc mineralization within the Sandy Creek zone, the initial focus of resource drilling. This zone was the main focus of previous exploration by companies including Aquitaine (later Triako), BHP and Delta Gold at Manbarrum.

The Phase 1 drilling program will enable Tennant Creek Gold to achieve its initial objective for the year, which is to delineate a JORC compliant initial resource estimate for the Sandy Creek Zone. Drilling results have continued to confirm the potential for the Sandy Creek zone to host a large tonnage, moderate grade zinc-lead-silver resource, typical of Mississippi Valley Type deposits.

As a result of the drilling completed to date, continuous stratabound zinc-dominant mineralisation has now been defined over a 450 x 250 metre zone within a 100 -120 metre thick sandy dolomite unit which is dipping west 30 degrees and plunging north at 35 degrees, with a sub vertical mineralised zone at the southern end of the deposit.

The mineralisation remains open to the south, west, north and at depth within sections of the sandy dolomite and within the sandy dolomite/silty dolomite contact zone. There is strong geophysical and drill data evidence that mineralisation could extend a further 400 metres to the west and a further 600 metres north of the 2006 drill grid.

Significant assay results, within the current mineralised zone are shown below, with a full table of intersections reported in Appendix 1.

Holes (v) enomin	Thickness E KET E DI DINAMAN	KA E WEAT A A MARITAN DI MARITANI A MARITANI A MARITANI A MARITANI A MARITANI A MARITANI A MARITANI A MARITANI A MARITANI A MA	23%		Z.
MRC068	5	6.55	0.03	11.80	6.56
MRC063	10	3.63	1.22	0.70	4.04
MRC056	20	3.15	5.97	29.10	5.14
MRC046	27	3.72	2.34	O	4.50
MRC045	12	2.48	3.77	18.33	3.73
MRC040	30	2.32	0.76	11.40	2.57
MRC038	28	7.42	0.15	1.68	7.47
MRC038	27	5.39	0.58	1.70	5.58
MRC038	13	3.54	2.82	18.62	4.48
MRC037	12	3.11	3.96	16.50	4.43
MRC034	17	3.24	5.07		4.93
MRC023	57	4.08	0.16	1.91	4.14
MRC023	7	10.17	0.52	10.29	10.34
MRC020	14	4.37	5.13	11.36	6.08
MRC017	19	6.32	1.22	10.37	6.73
MRC017	16	2.13	1.00	9.88	2.46
MRC016	20	3.00	0.34	9.35	3.12
MRC013	51	4.97	0.34	6.94	5.09
MRC012	110	5.73	0.53	4.66	5.91
MRC008	11	4.13	1.24	8.73	4.54
MRC007	14	2.02	0.87	3.00	2.31
MRC006	19	2.33	0.03	0.79	2.35
MRC005	12	2.07	5.89	14.00	4.03
MRC004	11	2.47	7.33	23.18	4.91
MRC004	2	4.45	3.06	53.00	5.47

Mineralisation

The 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.

The mineralisation is predominantly hosted by a quartz-sandy carbonate unit. In places, the mineralisation appears to extend into the underlying silty carbonate unit. Highgrade 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. smithsonite).

The 2006 drill program has confirmed that the predominant style of mineralisation is host rock carbonate matrix replacement with stringer and dissiminated-style sulphides. Some open-space filling-style mineralisation is indicated by stalagmites made of sulphides observed within a zone of massive sulphides.

Exploration Model

The Sandy Creek Main Zone deposit is interpreted to be a Stratabound carbonate matrix replacement-type zinc-lead deposit, with similarities to several global MVT deposits (eq SE Missouri MVT district, USA, with elements of Irish-type deposits, eq Ireland, Tri State district, USA).

Future Targets

In addition to the Sandy Creek zone, numerous surface geochemical soil and rock Pb/Zn anomalies and coincident IP geophysical anomalies have been identified within TNG's tenement portfolio at Manbarrum. These represent priority drilling targets for the 2007 exploration program.

Tenement Status

TNG has increased its exploration title with several applications to tenements in the Northern Territory and Western Australia. Once these applications are granted, the company will hold a total area of more than 1,100 km2 in this prospective region.

Application Status

TEREBOOR ster en lette ple	n: ar a	Date Applica	សម្រាប់ស្រ	Area
EL24395	TNG 100%	08/09/04	- Granted 16/08/06	200.0
A 24518	TNG 100%	15/12/04	- Granted 25/08/06	16.B .
EL25646	TNG 100%	16/10/06	Awaiting clearance	122.0
EL25470	TNG 100%	13/07/06	- Cleared for grant	199.5
E80/3772	TNG 100%	16/10/06	Awaiting clearance
F80/3816	NG.	30/11/06	Awaiting clearance

ELA 25470, located to the west of and adjacent to EL24395, has been cleared and grant is expected in early February 2007. This will provide the company with an additional 200 km² of prospective ground to explore and to drill test targets along strike of existing mineralisation.

Kununurra Exploration Base

At the end of the Quarter, the Company acquired the accommodation, office and storage facility in Kununurra that was previously leased. This integrated facility will serve as the Company's field headquarters for the Manbarrum Project.

The acquisition cost of \$600,000 was funded to the extent of \$480,000 by a secured loan from the Company's bankers.

$2.0$ 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 2006, TNG reached agreement regarding the sale of the Spring Hill tenements to Pan Resources Ltd for \$2,850,000. This sale was conditional upon Pan Resources Ltd gaining admission to the London Stock Exchange before 31 December 2006. Unfortunately, the admission has not been completed and the sale has now been cancelled.

Negotiations with Pan Resources and other parties are continuing.

TNG will consider its options for the Project during the current quarter.

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 oold-copper-bismuth deposits.

Due to the Company's focus in Manbarrum, no exploration has been conducted during the Ouarter.

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 2,500 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 Warrimunga 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.

Due to the Company's focus in Manbarrum, 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.

Due to the Company's focus in Manbarrum, no exploration has been conducted during 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.

Due to the Company's focus in Manbarrum, no exploration has been conducted during the Ouarter.

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.

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 2007.

There was no rovalty payment for the December Ouarter.

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, both based in WA.

CORPORATE

Staffing

During the December Quarter, two appointments have been made. Mr Paul Burton has been appointed as Exploration Manager and Dr Simon Dorling of CSA Australia Pty Ltd has been appointed as Manbarrum Project Manager.

Cash Position

At the quarter end the Company reported a cash balance of \$744K (Appendix 5B released 29 January 2007).

Since the quarter end the Company can confirm cash receipts of \$270K for the exercise of 31 May 2007 options (TNGOs).

The Company is confident that at the current share price the majority of the 31 May 2007 options will be exercised. TNG currently has just over 56M 31 May 2007 options outstanding representing \$8.4M.

Investments

TNG holds investments in AIM and ASX-listed Thor Mining PLC and ASX-listed Batavia Mining Limited.

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

TNG holds 15.1 million shares in Thor, representing approximately 11.6% of its issued capital.

A Definitive Feasibility Study for the Molyhil Project was completed during the December Quarter and Thor is now seeking finance for the development of the Project.

The Thor web page is:

MINING PLC

www.thormining.com.

Batavia Mining Limited (ASX code: "BTV")

TNG holds 16.3 million shares in Batavia representing approximately 14.3% of its issued capital.

Batavia is focussed on development opportunities for the Deflector Deposit and other mineral interests at Gullewa in Western Australia.

The Batavia web page is:

www.bataviamining.com.au.

Neil Biddle Managing Director

31 January 2007

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.

Directors

Australian Stock Exchange Listing

John W Barr Neil Biddle Michael Bowen	Chairman Managing Director Non-Executive Director	Shares Options		TNG TNGO
Terry Smith Eddie Fry Chief Financial Officer Damian Delaney	Non-Executive Director Non-Executive Director	European Stock Exchange Listings Frankfurt Berlin Munich Stuttgart		A0B60K A0B60K A0B60K A0B60K
Shareholder Enquiries Damian Delaney
Contact Telephone: Facsimile: Email: Website:	(08) 9327 0900 (08) 9327 0901 corporate@tennantcreekgold.com.au www.tennantcreekgold.com.au	Major Shareholders ANZ Nominees Limited Limited JW Barr N Biddle	RAB Special Situations (Master) Fund	15.3% 9.8% 8.7% 7.1%
Share Registry		Capital Structure 31/01/07
Level 2, 45 St George's Terrace	Computershare Investor Services Pty Ltd	Ordinary Shares Options: 30/04/07	TNG (Unlisted)	109,878,302 7,000,000
PERTH WA 6000		Options: 31/05/07	TNGO	56,414,103
Telephone:	$(08)$ 9323 2000	Options: 31/05/07	(Unlisted)	2,000,000
Facsimile:	(08) 9323 2033	Options: 30/11/07	(Unlisted)	2,300,000

9.50

3.50

$1.00$

4.67

1.67

1.50

2.50

$1.00$

4.50

$2.00$

$0.79$

2.29

7.00

$0.00$

$3.00$ $8.73$

$4.60$

3.50

1.76

2.66

3.72

$5.25$

2.35

$1.13$

$0.05$

$0.73$

$0.11$

$0.15$

$1.15$

$0.08$

$0.06$

1.56

$3.73$

2.41

1.65

$3.21$

1.45

2.50

1.54

$3.49$

2.37

1.60 $2.83$

$1.42$

2.48

APPENDIX 1

Thickness Bwa Urzs En Bole 19 $\mathbb{Z} \mathfrak{N}_0$ Aqeyom MRC001 $127$ $1.80$ $187$ 14.67 $\overline{\mathbf{z}}$ MRC001 2 1.97 $0.19$ $2.03$ $18.00$ MRC001 2 1.46 $0.23$ 1.54 19.50 MRC001 $0.13$ $1.72$ 32.00 $\overline{4}$ 1.68 MRC001 2 $109$ $0.34$ 1.20 19.50 MRC001 1.54 0.62 $\overline{7}$ 1.75 17.57 $\overline{\overline{2}}$ MRC001 $1.47$ $0.66$ 1.69 $1.24$ $1.90$ $8.00$ MRC001 $\overline{2}$ 1.87 MRC002 Ä 1.85 $0.29$ $1.95$ $12.13$ MRC002 2 $1.30$ $0.08$ $1.33$ 14.00 MRC002 $\overline{2}$ $1.21$ $0.25$ 1.29 MRC003 $\overline{6}$ 2.64 $0.14$ 2.69 MRC004 $\tilde{\mathcal{R}}$ 1.53 5.53 $3.37$ $\frac{1}{23.00}$ $2.47$ 7.33 4.91 $23.18$ MRC004 $11$ MRC004 $\overline{2}$ 4.45 $3.06$ 5.47 53.00 MRC004 $\overline{2}$ 3.88 1.66 4.43 16.50 MRC004 र् $174$ $0.52$ 1.91 MRC004 $\overline{3}$ 1.83 $0.28$ 1.93 MRC004 $10$ 1.76 $0.13$ $1.81$ MRC005 2 1.06 $12.41$ $5.19$ 38.00 4 MRC005 1.57 $9.70$ 4.80 32.75 MRC005 $\overline{12}$ $2.07$ 5.89 4.03 14.00 MRC005 2.60 $0.69$ 2.83 17.00 $\overline{3}$ $1,70$ $10.00$ MRC005 1.52 $0.53$ 2 MRC005 $\overline{\mathbf{4}}$ 1.85 $4.53$ $3.36$ 29.25 MRC005 $\overline{4}$ $1.21$ $0.28$ $1.31$ MRC005 5 1.15 0.57 1.35 8.00 $0.28$ MRC005 6.60 $\overline{5}$ $1.48$ 1.58 MRC006 2 $1.11$ $0.52$ 1.28 MRC006 $\overline{6}$ $1.48$ 1.62 $2.01$ MRC006 $\overline{2}$ 1.39 $0.10$ $1.42$ $\overline{19}$ MRC006 2.33 $0.03$ 2.35 $0.33$ MRC006 $\overline{3}$ $1.74$ $0.02$ $1.75$ MRC006 7 $1.74$ $0.06$ 1.76 MRC007 $\overline{2}$ 2.38 2.05 3.06 18.00 MRC007 $1,23$ $1.60$ $\overline{2}$ $1.10$ MRC007 $\overline{2}$ $3.92$ $0.05$ 3.94 MRC007 $14$ 2.02 $0.87$ $2.31$ MRC008 $4.13$ $1.24$ 4.54 11 MRC008 $\overline{5}$ 1.39 $0.48$ $-7.55$

MRC008

MRC009

MRC009

MRC009

MRC010

MRC010

MRC010

$\overline{2}$

ğ

7

$\overline{6}$

$\overline{6}$

$\overline{2}$

6

Most Significant Zinc Assays from 2006 Drilling

$Hole$ $b$	maraka kasa	Zniva	202	$z_0$ Eq	AGROOM
MRC010	2	1.30	0.02	1.31	1.25
MRC010	2	1.20	0.05	1.21	2.55
MRC010	4	1.22	0.03	1.23	1.60
MRC011	4	1.61	0.12	1.65	16.00
MRC011	5	2.00	0.16	2.06	2.20
MRC011	2	1.21	0.25	1.29	10.50
MRC011	3	1.42	0.06	1.44	3.00
MRC011	4	2.87	0.82	3.14	25.50
MRC012	4 iud.	3.52	0.31	3.62	5.00
MRC012	3	5.64	5.31	7.41	27.67
MRC012	110	5.73	0.53	5.91	4.66
MRC012	6	5.39	0.30	5.49	4.00
MRC013	5 W.	3.27	2.85	4.22	14.80
MRC013	7 z.	2.69	0.55	2.87	6.29
MRC013	3	1.34	0.11	1.38	2.67
MRC013	2	1.22	0.08	1.25	2.00
MRC013	2	2.76	0.15	2.80	3.50
MRC013	5	1.68	0.25	1.76	8.80
MRC013 MRC014	51	4.97	0.34 1.17	5.09 2.60	6.94 8.50
MRC014	6 3	2.21 2.88	0.40	3.01	9.33
MRC014	2	1.07	0.05	1.08	1.50
MRC015	5	2.76	0.79	3.02	12.40
MRC015	3	2.40	0.17	2.46	10.33
MRC015	2	3.08	0.15	3.13	1.00
MRC016	4	2.14	1.31	2.57	6.75
MRC016	p. 2	1.24	0.28	1.33	3.00
MRC016	6	1.31	0.28	1.40	3.33
MRC016	3	1.46	0.28	1.55	9.67
MRC016	20	3.00	0.34	3.12	9.35
MRC016	3	1.44	0.05	1.46	0.33
MRC016	8	2.52	0.03	2.53	1.63
MRC017	2	1.80	1.98	2.46	11.50
MRC017	16	2.13	1.00	2.46	9.88
MRC017	6	2.03	0.45	2,18	5.67
MRC017	5 n ya	1.41	0.78	1.67	4.60
MRC017	19	6.32	1.22	6.73	10.37
MRC018	7	1.45	0.20	1.52	2.57
MRC018	3	1.29	0.20	1.35	5.33
MRC018	2	1.21	0.25	1.29	4.00
MRC018	2 ł,	1.76	0.05	1.77	5.00
MRC018	7	1.37	0.07	1.39	0.57
MRC019	10	2.34	0.86	2.63	0.00
MRC019	3	2.20	0.18	2.26	0.00
MRC019 MRC019	2 2	1.60 2.02	0.25 0.69	1.68 2.25	0.00 0.00
MRC020	9	3.31	2.47	4.14	10.22
MRC020	5	1.58	0.17	1.64	3.20
MRC020	14	4.37	5.13	6.08	11.36
MRC020	4	1.27	0.27	1.35	2.75
MRC020	8	4.53	0.11	4.57	6.75

elok lo	Thickness	$Z_0$ We	Dba	Expres	Agreem
MRC020	4	1.40	0.13	1.44	2.50
MRC021	2	1.71	0.68	1.94	6.50
MRC021	12	1.72	0.29	1.82	4.42
MRC021	3	1.54	0.08	1.56	4.67
MRC021	2	1.27	0.52	1.44	2.00
MRC021	4	2.22	0.29	2.32	3.00
MRC022	2	1.36	0.33	1.47	10.00
MRC022	6 m,	2.15	0.22	2.22	6.17
MRC022	3 spor	2.30	0.03	2.31	2.67
MRC023	57	4.08	0.16	4.14	1.91
MRC023	7	10.17	0.52	10.34	10.29
MRC024	3	2.52	0.70	2.75	8.00
MRC024	4	4.23	0.90	4.53	12.50
MRC024	2 ny.	2.43	0.05	2.45	1.00
MRC024	8	2.59	0.04	2.61	0.88
MRC024	3	2.35	0.19	2.41	4.33
MRC024	4	1.31	0.20	1.38	5.00
MRC024	4	2.18	0.30	2.28	5.75
MRC024	5	1.74	0.19	1.81	4.60
MRC024	3	1.33	0.17	1.39	3.67
MRC024	5	1.19	0.10	1.22	4.60
MRC024 MRC026	4 4	1.19 1.37	0.19 0.04	1.25	5.75 2.00
MRC026	13	1.34	0.08	1.38 1.37	3.15
MRC026	6	1.76	0.26	1.85	1.50
MRC027	2	1.34	0.10	1.37	4.05
MRC027	₩ 2	1.94	0.03	1.94	29.00
MRC027	2	1.34	0.10	1.37	4.25
MRC027	3	2.00	0.76	2.25	1.00
MRC027	7	4.16	0.18	4.22	1.94
MRC028	10	1.91	0.14	1.95	1.80
MRC028	5	2.22	0.49	2.38	6.00
MRC028	2	1.74	0.05	1.75	0.50
MRC028	2	2.02	0.03	2.03	0.00
MRC028	4	1.96	0.04	1.98	0.75
MRC029	6	3.12	0.13	3.17	0.00
MRC029	5	2.55	0.83	2.83	0.00
MRC029	2	2.39	0.43	2.53	0.00
MRC029	$\overline{c}$	1.17	0.03	1.18	0.00
MRC029	2	2.02	0.03	2.02	0.00
MRC029	2 zі.	1.83	0.01	1.83	1.00
MRC029	2	1.73	0.02	1.73	3.00
MRC029	2	2.16	0.10	2.19	5.50
MRC030	7	1.96	0.30	2.06	6.86
MRC031	6	3.58	1.27	4.00	10.50
MRC031	6	2.10	1.68	2.66	15.83
MRC031	8	3.77	0.49	3.93	12.00
MRC031	4	1.25	0.19	1.31	9.50
MRC031	2	1.53	0.09	1.56	7.50
MRC032	7	2.72	1.60	3.25	7.86
MRC032	2	2.02	1.76	2.61	5.50

$\overline{16613}$	THE REACTES	$Z_0$ $\mathbb{Z}_2$ and	Pb%	CONTINUES IN THE REAL PROPERTY OF STATE llinziya e e en C	Albanya (Albanya) a Tanzania a Tanzania a Tanzania a Tanzania a Tanzania a Tanzania a Tanzania a Tanzania a T Askeem
MRC032	3	1.54	0.27	1.63	3.33
MRC032	4	3.88	0.06	3.90	9.50
MRC032	2	2.98	0.03	2.99	6.50
MRC033	ğ	2.60	5.68	4.49	20.67
MRC033	2	1.69	3.46	2.84	14.50
MRC034	17	3.24	5.07	4.93	0.00
MRC034	5	2.06	7.81	4.66	29.20
MRC034	2	1.44	1.13	1.82	16.00
MRC034	2	1.77	0.81	2.04	18.00
MRC034	4	1.62	6.21	3.69	24.25
MRC034	5	2.36	0.10	2.40	8.00
MRC034	3	1.09	1.11	1.46	3.67
MRC035	2	2.02	0.78	2.27	4.00
MRC035	3	2.05	0.74	2.30	5.33
MRC036	2	2.91	1.50	3.41	13.00
MRC036	2	1.87	0.72	2.11	6.50
MRC036	3	1.39	0.56	1.58	3.00
MRC037	12	3.11	3.96	4.43	16.50
MRC037	2	1.33	1.41	1.80	11.00
MRC038	13	3.54	2.82	4.48	18.62
MRC038	2	2.52	0.22	2.59	2.50
MRC038	27	5.39	0.58	5.58	1.70
MRC038	3	3.97	0.05	3.99	0.67
MRC038	4	5.45	1.37	5.90	6.50
MRC038	28	7.42	0.15	7.47	1.68
MRC039	2	1.46	0.16	1.51	4.50
MRC039	4	1.10	0.21	1.17	1.75
MRC039 MRC039	4	1.17	0.14 0.17	1.22	2.50
MRC039	16 2	1.29 1.38	0.10	1.35 1.41	2.94 9.50
MRC039	3	1.52	0.08	1.54	5.00
MRC040	×, 4	1.13	0.20	1.20	2.75
MRC040	6	1.27	0.21	1.34	2.00
MRC040	36	1.83	0.54	2.01	6.06
MRC040	30	2.32	0.76	2.57	11.40
MRC042	8	2.01	0.28	2.10	2.38
MRC043	9	2.33	2.47	3.16	7.00
MRC045	3	1.91	0.17	1.96	8.67
MRC045	12	2.48	3.77	3.73	18.33
MRC045	4	1.55	1.46	2.04	4.50
MRC045	2	3.46	0.08	3.49	12.50
MRC046	2	2.16	0.07	2.18	0.00
MRC046	3	1.32	0.15	1.37	0.00
MRC046	$\bar{2}$	1.11	0.03	1.12	0.00
MRC046	5	1.52	0.12	1.56	0.00
MRC046	2	1.40	0.22	1.47	0.00
MRC046	27	3.72	2.34	4.50	0.00
MRC046	6	1.99	1.07	2.35	0.00
MRC047	2	1.25	0.56	1.44	3.50
MRC047	3	1.75	0.18	1.81	7.00
MRC048	4	2.34	0.47	2.49	5.50

Hole ID	Thiokness	$\mathbf{Z_0}$ % $\mathbf{Z_0}$	Phy.	ili izan Be	Ag ppm
MRC048	2	2.88	0.01	2.88	6.50
MRC049	2	1.81	0.42	1.95	6.00
MRC049	2	2.06	0.07	2.08	5.50
MRC053	2	1.24	1.93	1.88	3.50
MRC053	2	1.06	2.56	1.91	18.50
MRC053	4	1.66	0.06	1.68	0.25
MRC054	4	4.43	1.92	5.06	13.75
MRC054	2	1.48	0.21	1.55	9.00
MRC054	2 4m	1.88	0.06	1.90	15.00
MRC054	3 e. Kilik	4.22	0.06	4.24	5.67
MRC055	2	1.62	1.34	2.07	7.00
MRC055	2	2.35	0.85	2.63	15.50
MRC055	3	1.28	2.80	2.21	7.33
MRC055	2	1.46	0.03	1.46	2.50
MRC056	6	3.98	1.51	4.48	14.00
MRC056	20	3.15	5.97	5.14	29.10
MRC056	2	1.58	0.02	1.58	1.50
MRC057	2	1.48	0.12	1.52	5.00
MRC057 MRC057	$\overline{3}$ 2	2.16 1.88	4.21 2.22	3.56 2.62	12.00 17.00
MRC057	2	1.62	3.22	2.69	13.00
MRC057	2	1.57	0.22	1.64	4.50
MRC059	4	1.77	0.54	1.95	1.90
MRC059	2	2.15	0.09	2.18	5.15
MRC059	2	1.27	0.08	1.29	2.25
MRC059	2	1.65	0.15	1.70	1.50
MRC059	p. 5	1.33	0.09	1.36	1.22
MRC060	4	2.49	0.49	2.65	8.50
MRC060	2	1.13	6.16	3.18	17.50
MRC061	4	1.61	0.78	1.87	14.50
MRC063	6	2.34	0.28	2.43	5.50
MRC063	10	3.63	1.22	4.04	0.70
MRC064	4	1.64	0.02	1.64	0.50
MRC067	4	1.61	0.23	1.68	6.50
MRC067	3	1.23	0.18	1.29	6.33
MRC067	3	2.51	3.47	3.67	11.33
MRC067	5	1.50	0.27	1.59	3.20
MRC068	4	2.16	0.15	2.21	2.50
MRC068	3	1.48	0.04	1.49	0.33
MRC068	2	1.30	0.02	1.30	0.00
MRC068	3	2.10	0.02	2.10	0.00
MRC068	2	2.34	0.05	2.36	0.00
MRC068	5	6.55	0.03	6.56	11.80
MRC068 MRC069	3	3.94 1.32	0.03 0.18	3.95 1.38	1.33 6.00
MRC069	2 2	1.24	0.03	1.25	1.00
MRC069	2	1.59	0.02	1.59	0.00

APPENDIX 2

Manbarrum Zn-Pb-Ag Project

Burt Range Shelf, Bonaparte Basin, NT

Neil G. Biddle, Managing Director

ABSTRACT

In its first six months of operation in the Bonaparte Basin of northwestern Australia, Tennant Creek Gold Ltd (TNG) has significantly advanced the resource potential of the Manbarrum Zn-Pb-Ag Project.

TNG successfully completed 62 Reverse Circulation (RC) drill holes for 9,471m on a 50 by 50m grid. Contemporaneously, the company conducted an IP survey which covered selected parts of the tenement holding in the area. Individual ground-gravity traverses were also carried out.

The Sandy Creek Prospect was discovered by Aquitaine Australia in the mid-1970's. The prospect area was explored by several companies until the late 1990's. A pre-JORC resource of 3.2Mt @ 4.5%Pb, 2.4%Zn and 15g/t Ag was delineated at the prospect in the early 1980's by Aquitaine and its partners. The Sandy Creek Prospect was believed to contain primarily structurally-controlled lead mineralisation.

The Sandy Creek Prospect is located in the Burt Range sub-basin of the southern onshore Bonaparte Basin. The mineralisation is hosted in Lower Carboniferous shallow-marine clastic (sandy) dolomite rocks of the Burt Range Formation which unconformably rest on Proterozoic basement and in turn are unconformably overlain by fine-grained carbonaceous siltstones and sandstones of the Upper Lower Carboniferous Milligans Formation.

TNG has been able to demonstrate that the mineralisation is dominated by zinc-lead-silver sulphides replacing the carbonate matrix of the host formation in the form of disseminated and massive sulphides. The morphology of the deposit appears to be controlled by sub-vertical, possibly deformation-induced porosity and by stratigraphic controls, particularly the carbonate-shale contact which forms the hanging wall to mineralisation.

The location of mineralisation at Sandy Creek corresponds closely with a surface (soil) geochemical anomaly and the location of a west-dipping IP (chargeability) anomaly. Regional and prospect-scale gravity data do not provide sufficient detail over the prospect area, however, the data suggest that the mineralisation is situated near the margin of a gravity high (slope).

The major advancements to the project were made by TNG in the areas of geological understanding, mineralisation geometry, mineralisation, and geophysical controls and can be summarised as follows:

• Zinc is the primary economic commodity at the Sandy Creek $\bullet$ Prospect with lead occurring on average at a ratio of 20:1. Lead is estimated to constitute about 20% of the deposit (preliminary visual estimates). Base metal intercepts of combined zinc and lead greater than 2 to 3%, show silver values generally exceeding 20g/t.
• The deposit includes a supergene and a primary mineralisation zone $\bullet$ with the primary (hypogene) zone dominating the overall mineralisation volume.
• The centre of mineralisation is a sub-vertical pipe-like body with a flat and shallow-dipping top.
• A strong correlation exists between an IP (chargeability) anomaly and the main zinc mineralisation.
• The bulk of the mineralisation is interpreted to be represented by a matrix-replacement style of mineralisation.
• The insight TNG has gained from the discovery of this deposit will be used to effectively quide future exploration.

Introduction

Background

Following the successful conclusion of Heritage Clearance negotiations in August 2006, Tennant Creek Gold Ltd (TNG) commenced mineral exploration work at its MANBARRUM Zn-Pb-Ag Project which includes several early to advanced stage exploration targets. Amongst these are the Sandy Creek, Alpha Hill, Winchrope Hill, Ochre mine, Bundaburg, Bore, Browns Hill, Flapper Hill, The Gap, and Beta prospects. Sandy Creek is the most advanced prospect and has had significant historic work completed over it.

Between July and December 2006, TNG completed several field-based exploration programmes which included ground geophysical surveys such as gravity and electromagnetics (IP), the acquisition of high resolution satellite imagery, RC drilling and petrology with most of this year's field activity focused around the Sandy Creek Prospect.

The core exploration programme completed by the end of 2006 was the RC drilling The analytical results from this programme provide the basis for a programme. resource estimation which is currently underway.

Location, Access and Infrastructure

The Manbarrum Project located at longitude 129º15'E and latitude 15º20'S, approximately 20km east of the WA-NT border (Fig. 1). The project is about 11/4 hours drive (82km) northeast from the regional centre of Kununurra in WA. The Sandy Creek Prospect is also 10km from the proposed Weaber Gas field pipeline which has been proposed for construction.

Kununurra is about 150km north-northeast of the Argyle Diamond mine and about 180km north-northeast of the Sally Malay Nickel mine. Teck-Cominco's Lennard Shelf zinc-lead operation is located about 600km southwest along the Great Northern Highway.

Figure 1. Project location map.

Exploration History

References to gossans and surface mineralisation in limestone rocks of the Bonaparte Basin go as far back as the early last century, however serious consideration to the base metal potential of the area was given following the reporting of minor lead and zinc mineralisation in the first onshore oil well drilled by Oil Development NL/Westralian Oil Ltd Spirit Hill No. 1 (Jorgensen et al., 1990, Lee and Rowley, 1991).

Table 1 provides a summary of the companies that were involved in mineral exploration in the onshore Bonaparte Basin; the main exploration strategies employed and major successes.

Table 1. History of base metal exploration in the onshore Bonaparte Basin.

Perod William	Company/JV	Exploration Activity	Results 2000000
1971 - 1986	Aquitaine in various JV's	Mapping, sampling, IP, grid drilling, EM, aeromagnetic, RC drilling, DD drilling; gamma-logging; seismic; basin modelling	· 1971 discovery of Sorby Hills, Sandy Creek outcrop 1973 D-E mineralisation • 1976 Alpha and Beta trends
$1972 - 1979$	Aquitaine/SEREM JV	Mapping, sampling, IP, grid drilling, EM, aeromagnetic, RD drilling, DD drilling
$1977 - 1985$	Aquitaine/MIM	Mapping, sampling, EM, aeromagnetic, RC drilling, DD drilling
1981 - 1985	St Joe Bonaparte	Mapping, sampling, IP, grid drilling, EM, aeromagnetic, RD drilling, DD drilling
1986-1996	Elf Aquitaine. Triako/BHP JV	Sampling, IP, grid drilling, EM, aeromagnetic, RD drilling, DD drilling; gravity
1992 - 1995	North farm in	EM, aeromagnetic,
1992 - 1997	Wilga Mines (Delta) farm in	Sampling, IP, EM, aeromagnetic, RC drilling, DD drilling; MMI
2006	TNG	IP, gravity, RC drilling,	Sandy Creek Deposit

TNG exploration programme

During the 2006 field season TNG completed an RC (Reverse Circulation) drilling programme at Sandy Creek. The programme entailed the completion of 62 drill holes for a total of 9,471m. These holes were drilled on a grid approximately 50 by 50m. The average hole depth was just over 150m.

All holes except one reached drilling target. Initially, the holes were targeted to confirm and determine the extent of historic mineralisation at Sandy Creek, however, as drilling progressed geological controls on mineralisation were recognised and some drill holes redesigned to test extensions to mineralisation. Several drill holes terminated in mineralisation.

Geology

Basin outline

The Bonaparte Basin is located in north-western Australia, straddling the Northern Territory- Western Australia border and extending offshore north and northwest to the continental margin (Fig. 2). The present gross structure of the basin is that of a Vshaped northwest-pitching syncline. The onshore basin covers approximately 18,000km2, about 20% of the combined on and offshore areas (Gunn, 1988; Laws and Brown 1976).

The depositional and structural history of the basin is relatively uncomplicated. Deposition commenced in the Late Cambrian and apart from a depositional interruption during the Late Ordovician to Middle Devonian sedimentation continued to the Holocene. In excess of 15,000m of sediments were accumulated in the deepest part of the basin (Veevers and Roberts 1968).

Regional Geological Setting

The onshore Bonaparte Basin contains a Cambrian to Permian sedimentary sequence can reach a thickness of 5,000m. The sequence is dominantly Late Devonian to Early Carboniferous age platform carbonates and sandstones. These rocks were deposited in an evolving continental rift system during the Late Devonian followed by thermal sagging and wide-spread subsidence in the Early and Middle Carboniferous. Marginal clastic rocks and reef complexes interfinger laterally (basinwards) with platform carbonate rocks and fine-clastic rock in the basin.

The southern part of the basin is bounded to the east and west by Precambrian basement. The eastern boundary in the onshore region is faulted against the Sturt Block, while the sediments in the west rest unconformably on the Precambrian Kimberley Block.

The southern part of the basin is strongly controlled by faulting in the northeast-trending Halls Creek Mobile Zone fault system (Gunn, 1988). This fault system is interpreted to be a long-lived and episodically reactivated basement-hosted system that controlled deposition during rifting with sinistral transcurrent and vertical movement. Folding in the basin is insignificant with most folds being drape folds over palaeo-highs. Metamorphism is negligible.

The Pincombe Inlier is an important structural feature in the basin (Fig. 3). It separates the Burt Range sub-basin to the east from the Carlton sub-basin to the west and represents a palaeo-high. The inlier marks the faulted western margin of the northerly plunging syncline which forms the Burt Range sub-basin.

The Bonaparte Basin has undergone a very similar geological evolution as the Canning Basin in the south Kimberley region. Both basins appear to have been initiated by the same crustal processes and were linked by the reactivated Halls Creek Mobile Zone.

Figure 2. Regional tectonic setting of the Bonaparte Basin.

Local Geology

The Manbarrum Project area is located along the eastern margin of the Burt Range subbasin (Figs 3). Late Devonian and younger sedimentary rocks rest unconformably above basement rocks. The sediments strike broadly northeast and dip at about 30° to the northwest with minor displacement from north-northeast trending faults.

Figure 3. Geological setting of the onshore Bonaparte Basin.

Stratigraphy

At Sandy Creek, the stratigraphic subdivisions show broad similarities with Sorby Hills, although local variation is likely to have occurred (Lee and Rowley, 1991, Jorgensen et al., 1990). The stratigraphy of the broader Sandy Creek area is described in terms of lithological units distinguished during recent RC drilling. In principle, a layer of transported material up to 15m thick covers the entire area. It has been deposited on a layer of weathered clayey sediments which is commonly 25 to 30m thick. This layer is interpreted to be a residual of the underlying sedimentary sequence. A transitional zone of 1 to 3m separates the weathered from the unweathered material. Unweathered rock formations included the interbedded sandy and shaly carbonaceous siltstones of the

Milligans Formation (Clm in Fig. 4); a quartz-sandy dolomite (Clb2 in Fig. 4) and silty dolomite (Clb1 in Fig. 4).

A preliminary comparison with the Sorby Hills stratigraphy suggests that the "quartzsandy dolomite" unit can be correlated with the Upper Burt Range Formation (Gooseneck Member) of the Lower Carboniferous and the "silty dolomite" with the Middle Burt Range Formation (Knox Siltstone Member) of the Lower Carboniferous.

Structure

The recent RC close-spaced drilling suggests that the basement block underlying the Sandy Creek area is a relatively stable and moderately northwest-tilted block. However, minor faults and fractures may have affected the area. Up to 10m wide intervals of oxidised rock chips have been observed amongst fresh rock which may suggest weathering along faulted zones. In addition, litho-stratigraphic correlation of bore hole data suggests that the stratigraphy at Sandy Creek is offset by an east-striking and north-dipping normal fault (Fig 5). The displacement is interpreted from the offset in the up-dip projection of geological boundaries. An apparent lateral offset in the order 40 to 50m is interpreted.

It is also possible that strike-slip or oblique-slip movement in basement-hosted structure transposed as minor, oblique-trending fracture sets into the overlying sedimentary cover. Such faults would have minimal vertical movement however would be able to create significant permeability in the cover sequence.

Future work is expected to shed further light on the significance of faults as controls on sedimentation and stratigraphy.

Mississippi Valley-type (MVT) Mineralisation of the Bonaparte Basin -Sandy Creek

Until recently, MVT mineralisation in the onshore Bonaparte Basin has generally been associated with the Sorby Hills deposit (Lee and Rowley, 1991; Jorgensen et al., 1990; Ringrose, 1989), although MVT mineralisation was discovered at almost the same time at Sandy Creek. Both occurrences have remained the only significant sub-economic occurrences of MVT mineralisation discovered in the Bonaparte Basin. TNG's recent work has substantially increased the resource potential at Sandy Creek.

Mineralisation

The Zn-Pb-Ag mineralisation at Sandy Creek is irregularly distributed below the contact between the Milligans Formation shaly and sandy siltstones units and the underlying quartz-sandy carbonate rocks. This contact forms the hanging wall to the known mineralisation. No zinc-lead mineralisation penetrated into the overlying shales. Shales acted as seal to the mineralising brine. Cross and long section representation of the mineralisation (using 1%cut off) suggests that mineralisation occurs as steeply dipping high grade pods as well as stratabound layers sub-conformable with stratigraphy (Figs. $5/6/7$ ).

Figure 5. Simplified solid geological map (cover removed) of the Sandy Creek area following the completion of drilling in 2006 (red dots). Green and blue dots are historic drill holes. Contours represent %m intervals.

The mineralisation includes a near-surface zone of supergene mineralisation which is predominantly sphalerite (zinc mineral) oxide with locally high grade galena (lead mineral) in a clay matrix. The oxide mineralisation is estimated to represent 20% of the total metal content.

Figure 6. Representative geological section for the Sandy Creek Prospect (section 8,297,050N). Mineralisation is interpreted at 1% ZnEq (zinc equivalent) cut off and mineralised intervals at a minimum length of 2m. ZnEq is calculated at a Zn:Pb ratio of $3:1.$

Figure 7. North-south long section for the Sandy Creek Prospect (section 520,630E). Mineralisation is interpreted at 1% ZnEq (zinc equivalent) cut off and mineralised intervals at a minimum length of 2m. ZnEq is calculated at a Zn:Pb ratio of 3:1.

Dominant ore minerals are coarse-grained sphalerite (zinc) and galena (lead) at a Zn:Pb ratio that varies from 1:10 to 30:1 within the mineralised zone. In the sulphide zone the Zn:Pb ratio ranges from 1:5 to 30:1 with a global average for the deposit being at about 20:1 indicating a strong zinc bias.

The sulphide content is variable ranging from very fine, sparsely disseminated grains of pyrite-marcasite-sphalerite-galena to spongiform aggregates through to massive polysulphide aggregates completely replacing the host rock (Figs 8/9). Open space filling by colloform, textured, rhythmically banded sphalerite-marcasite and coarse euhedral marcasite is also evident. Minor fine veins of crystalline barite are associated with some sulphides

Figure 8. Photograph of sandy dolomite core specimen (historic drilling). Mineralisation occurs as vein network and disseminated mineralisation (core 4.3cm wide).

Figure 9. Micro-photograph shows colloform sphalerite with minor interlayered galena (Mc = marcasite, Sp = sphalerite, black minerals = galena, view = $1mm$ ).

The mineralogy and sulphide textures are consistent with other MVT deposits, i.e., epigenetic replacement of carbonated host rocks. Textures include vein and cavity infilling, colloform overgrowths and rhythmic banding of sulphides (Fig. 9). Although currently difficult to construct, a possible paragenetic sequence would be: Pyritemarcasite + sphalerite replacement of host rock with later marcasite-sphalerite overgrowths and cavity infilling. Minor galena is associated with later sphalerite.

Metal content distribution

Contour maps of cumulative mineralised intervals above 0.5%ZnEq and cumulative weighted average grade times interval length illustrate the pod-like nature of the deposit as well as the widespread stratabound component of it (Fig. 5). The diagram also illustrates a north-northeast trend in the mineralisation which may be related a fracture system in the host carbonate unit. An interpreted east-trending normal fault suggests that faulting may have continued during the Late Carboniferous giving way to fluid conduits in the basin margin

Element associations

Bore hole samples were analysed for zinc, lead, silver, copper, cadmium, arsenic, iron and sulphur. Graphic down hole geochemical logs highlight various element association that are common with other MVT deposit. Zinc and lead have a moderate to good positive correlation within the zinc-dominated parts of the deposit. Silver is more enriched in galena although the bulk of the silver is associated with high grade zinc. Iron sulphides are strongly associated with zinc sulphides.

Alteration

Pervasive silicification is evident in some chips, replacing the calcareous portion of the rock and hosting fine botryoidal clusters of sphalerite. Other textural features include possible allochens (ooids) in MRC016 (120-128m).

Geophysics

Of the three geophysical techniques - IP, gravity and seismic - utilised in exploration of the project area IP (chargeability) appears to be the most useful detection tool. Figure 10 shows the distribution of mineralisation projected onto the -85m IP depth slice. This displays a close spatial association between IP chargeability and mineralisation. The chargeability response is likely to relate to mineralisation, particularly marcasite and pyrite below the base of oxidation.

Gravity and seismic data density at the prospect scale is not sufficient to draw conclusions to the controls of mineralisation at Sandy Creek. However, both gravity and seismic suggest a complex basin margin geometry with basin margin parallel and orthogonal trending offsets in the basement.

Figure10. Plan (-85m depth IP depth slice) and section showing the relationship of IP data to mineralisation at Sandy Creek.

Conclusions

Major advancements to the project were made by recent TNG exploration in understanding mineralisation geometry, mineralisation, and geological and geophysical controls. These can be summarised as follows:

Zinc is the primary economic commodity at the Sandy Creek Prospect with lead $\ddot{\bullet}$ occurring on average at a ratio of 20:1. Lead is estimated to constitute about

20% of the deposit (preliminary visual estimates) pending the resource estimation.

• The deposit includes a supergene and a primary mineralisation zone with the $\bullet$ primary (hypogene) zone dominating the overall mineralisation volume.
• The centre of mineralisation is a sub-vertical pipe-like body with a flat and $\bullet$ shallow-dipping top, open to the north, south, west and at depth.
• A strong correlation exists between an IP (chargeability) anomaly and the main $\bullet$ zinc mineralisation.
• The bulk of the mineralisation is represented by a matrix-replacement style of mineralisation.
• The insight TNG has gained from the discovery of this deposit will be used to effectively increase the resource and enhance the chance of further discoveries in the licence area and the region..

References

Gunn, P. J., 1988, Hydrocarbon discoveries in the Bonaparte Basin, Sedimentary Basin of North-Western Australia (Ed. P.G. Purcell) pp. 419-424.

Jorgensen, G. C., Dendle, P.K., Rowley, M. and Lee, R. J., 1990, Sorby lead-zinc-silver deposit, Geology of the Mineral Deposits of Australia and Paua New Guinea (Ed. F. E. Hughes), pp. 1097-1101 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Laws, R. A. and Brown, R. S., 1976, Petroleum Geology of the south-eastern Bonaparte Gulf Basin, in Economic Geology of Australia and Papua New Guinea (Eds, Leslie, R.B., Evans, and Knights, C.L), AusIMM, Monograph No.7, pp. 200-208

Lee, R.J., and Rowley, M., 1991, Sorby Hills lead-zinc-silver, Bonaparte Basin, Western Australia, in Geological Aspects of the discovery of some Important Minerals in Australia (Eds., K.R., Glasson, J.H. Rattigan, a.H., Blaikie and T.J. Woodcock) AusIMM,

Mory, A. J. and Beere, G. M., 1988, Geology of the onshore Bonaparte and Ord Basins in Western Australia, Bull. Geol. Survey. WA. 134.

O'Brien, G. W., Etheridge, M. A., Wilcox, J. B., Morse, M., Symonds, P., Norman, C., and Needham, D. J., 1993, The structural architecture of the Timor Sea, North Western Australia: implications for basin development and hydrocarbon exploration, APEA Journal, pp. 258 - 278.

Ringrose, C. R., 1989, Studies of selected carbonate-hosted lead-zinc deposits in the Kimberly Region, Geol. Survey of WA, Rept. 24, pp. 7-45.

Veevers, J. J. and Roberts, J. 1968 - Upper Palaeozoic rocks, Bonaparte Gulf Basin of Northwestern Australia, Bull. Bur. Miner. Resour. Aust., 97.