Geology

Geology

The Arunta province has long been considered prospective for Nickel-Copper and Platinum Group Minerals. However, in 2008 TNG discovered a substantial ferrous metals deposit at Mount Peake which has subsequently emerged as a potentially world-class Vanadium-Titanium-Iron resource. Mineralisation is located in large magnetite rich gabbro-norite.

The discovery diamond drill hole, ARD02, returned an intercept of 80m @ 28.7% Fe, 0.43% V2O5, 7.5% TiO2 from 31m, confirming the presence of a substantial body of magnetite-hosted mineralisation.

Mount Peake Deposit - Exploration Target 500-700Mt1

1 The potential quantity and grade is conceptual in nature, there has been insufficient exploration to define a Mineral Resource and that it is uncertain if further exploration will result in the determination of a Mineral Resources.

Analytical and geophysical data collected for the Project demontrated that it has the potential to develop as a significant vanadium project, comparable in size with other similar deposits currently at an advanced stage of evaluation and development in Australia.

In 2009 TNG announced a maiden JORC Inferred Resource Estimate of 107 Mt @ 0.4% V205, 9% Ti02, 28% Fe was completed by by Snowden Mining Industry consultants. A preliminary Scoping Study also carried out by Snowden showed positive economics with a positive NPV >$800M based on the Inferred Resource.

In late 2009, TNG completed further drill testing of extensions to the mineralisation at Mount Peake and the extent of mineralisation was increased to at least 3,000m in length and 500m width.

New Exploration Licence

TNG has received granted renewal for EL 23271.