Company Information for Territory Resources Ltd

ASX-TTY

www.territoryresources.com.au

Company stock charts - 12 Month chart

ASX; TTY

View full financial data

Company Statement

Territory Resources Ltd is an ASX-listed (ASX:TTY) carbon steel company, with iron ore resources in Australia's Northern Territory.

All of the Company’s assets are located in the Northern Territory of Australia where four projects have been identified:

Frances Creek –contains the old Frances Creek mines which have produced the majority of the Northern Territory’s recorded iron ore production to date.
Yarram – comprises four tenements focused on the Yarram and Batchelor prospect areas located near the township of Batchelor.
Mt Bundey – covers tenements centred on the old Mt Bundey high grade haematite open cut mine.
Warrego – centred on the tailings discarded from gold mining operations around Tennant Creek.

Territory's initial focus is on developing our first project at Frances Creek together with maintaining a vigorous exploration program to identify the most prospective areas for longer term growth.

Production at Frances Creek and railing of iron ore to the port of Darwin is underway. The first shipment to China is planned for the third quarter of 2007. Annual production is targeted at 1.5mtpa and planning to increase to 3.0mtpa by December 2008.

The Company intends to build itself into a diversified carbon steel material producer, through appropriate mergers or acquisitions. The Company’s approach to generating shareholder value is through exploration excellence leading to development success.

Territory Resources is well positioned geographically to take advantage of iron ore demand. Its exploration project areas are close, via either rail or road, to the Port of Darwin and the Company’s iron ore would be railed or road transported to Darwin for export through the multi-user bulk loading wharf facilities at East Arm Wharf. The Port of Darwin has a freight advantage due to its proximity to Asian markets.

Marketing agreements are in place with the cornerstone shareholder, Hong Kong based Noble Group Limited (SGX: NOBL), which is a global leader in supply chain management. Noble plays a key role as intermediary in the supply chain of iron ore into China, currently trading about 20 million tonnes annually into that market. Territory Resources has entered into a life-of-mine supply agreement with Noble.

Territory Resources has contracted with Freight Link to provide rolling stock and rail transport into the Port of Darwin. The Darwin Port Corporation has spent $24 million for the provision of bulk material handling facilities.

Current Operations

Frances Creek
Territory Resources’ primary project is the 100% owned 1.5 mtpa Frances Creek project, located north of the regional town of Pine Creek on the Stuart Highway, 190 km south of Darwin.

The Project commenced with mining in May 2007. Production and railing of iron ore to the port of Darwin is underway. The first shipment to China is planned for the third quarter of 2007. Annual production is targeted at 1.5mtpa and planning to increase to 3.0mtpa within 18 months.

Geologically, the area is underlain by lower Proterozoic folded sediments intruded by lower Proterozoic granitoids. The iron mineralisation occurs in a strike fault breccia in the lower Wildman Siltstone and ranges in composition from haematite to goethite and limonite.

The main iron mineralisation at Frances Creek is known over a distance of approximately 35 kilometres. Of the fifty named deposits, 13 located on the southern end of the mineralised belt were exploited from 1967 to 1974 for a total production of around 6 million tonnes. As at February 2007, total resources were 9.73 million tonnes at 60.7% Fe with 4.81 million tonnes in reserves. Iron ore was previously mined at the site until 1974.

The project has been rejuvenated with the substantial development of mining and processing technology, combined with infrastructure improvement. The project has logistical advantages by way of infrastructure - both at a regional level where rail and bulk handling facilities are in place and locally where previous mining has provided haul roads.

The Alice Springs to Darwin rail line runs within 15 kms of the project, and the Darwin Port has been upgraded. In addition, the nearby Pine Creek town is highly suited to housing employees.

There are excellent prospects for iron mineralisation within the project area. Massive haematite continues at depth below the floors in the abandoned pits and occurs in a number of unmined deposits drill-evaluated at Frances Creek in preparation for mining.

The Company’s strategy is to conduct significant exploration with a target to double the current five year mine life. Territory Resources has planned a two-year staged exploration programme consisting of airborne geophysical surveys to define structural and lithological targets, supported by an aggressive drilling program.

Mt Bundey
The Mt Bundey Project comprises two exploration licenses and an exploration licence application totalling 241 km2 straddling the old Mt Bundey haematite mine, which produced 843,000 tonnes from 1968 to 1971. The Project area lies adjacent to the Arnhem Highway and is some 100 km east southeast of Darwin.

Since the 1960s, no systematic exploration has been undertaken and Territory Resources considers the area has significant exploration potential.

The company proposes to undertake a two-year staged program comprising the acquisition of new, high resolution airborne magnetic and radiometric data to provide better definition of known magnetic anomalies within the Mt Bundey and Mt Goyder areas, as well as identify new anomalies within the district.

Follow-up work will comprise of gridding, mapping, geochemical sampling, ground magnetic surveys and scout RAB drilling of aeromagnetic anomalies, and where appropriate, definition RC drilling to determine resource grade and tonnages.

Yarram Project
The Yarram Project comprises four tenements focused on the Yarram and Batchelor prospect areas located near the township of Batchelor. The Project area lies 100 km south of Darwin and has good access from the Stuart Highway.

At Yarram, four parallel and lenticular iron lodes assaying in excess of 60% Fe occur within a steeply dipping, low grade iron siltstone which assays between 40% to 60% Fe. The iron lodes can be traced along strike length over a distance of up to approximately 100m and are up to approximately 7m thick. Significant iron grades have been intersected in a number of drillholes, including 15.2m at 63.0% Fe from surface.

The Batchelor prospect area contains scattered goethite and limonite outcrops and rubble and is underlain by carbonaceous pyretic argillite and dololutite of the iron-bearing Whites Formation and the Coomalie Dolomite. The exploration target is iron mineralisation similar in style to the nearby Yarram deposit.

Territory Resources proposes to undertake a two-year exploration programme at Yarram and Batchelor. At Yarram, a large database exists from past diamond and percussion drilling, and the initial task will be to compile this data to aid in the identification of areas of higher grading iron material from lower grade iron material contained within the larger resource. Drilling will be undertaken to verify the existing database and to delineate areas of high grade iron tonnage. The amenability of the lower grade iron material to beneficiation to an economic iron product will also be investigated by bulk sampling and metallurgical testwork. At Batchelor proposed work comprises geological mapping and target identification, followed by scout RAB and definition RC drilling of these targets

Geographical Spread

Board of Directors and Key Management

Andrew Simpson - Chairman

Senior marketing executive with extensive global marketing experience in the resource and mining industry, including more than 30 years of international marketing and distribution of minerals and metals. Currently Chairman of Swick Mining Services and India Resources, and a non executive director of Vital Metals, Matilda Minerals and ABM Resources.

Allan Quadrio - Managing Director

25 years experience in mining operations. An experienced and qualified metallurgist, having been Resident Manager at various mine operations within Western Australia including gold and nickel operations. Former Operations Director of Consolidated Minerals.

Ian McCubbing - Executive Finance Director

Chartered Accountant with more than 25 years corporate experience including investment banking in corporate finance and M&A. Previously worked as a CFO and spent more than 12 years working with ASX-listed companies in senior finance roles in industrial and mining companies.

Company Address

23 Ventnor Avenue
West Perth, Western Australia, Australia 6005


Telephone:	+61 (8) 9483 5116
Facsimile:	+61 (8) 9483 5111
Email:	admin[at]territoryresources.com.au
Website:	http://www.territoryresources.com.au

Major Shareholders

Crawley Resources Ltd	30.5%
O M Holdings Ltd	12.7%
Zero Nominees Pty Ltd	7.0%
National Nominees Ltd	3.2%
ANZ Nominees Ltd	2.6%
J P Morgan Nominees	1.8%
DBS Vickers Securities	1.3%
HSBC Custody Nominees	0.9%
RBC Dexia Investor Services	0.9%
Heng Siow Kwee	0.8%

Most Recent Statement

02/12/08 - Resignation of Directors
21/11/08 - AGM Chairman`s Address and Managing Director`s Presentation
20/11/08 - Market and Operational Update
21/10/08 - Market Update - Matilda Minerals Ltd
20/10/08 - Quarterly Activities and Cash Flow Report
30/09/08 - 2008 Full Year Accounts and 2008 Concise Accounts

To top