TERRITORY RESOURCES LIMITED - ASX: TTY

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Description

Territory Resources Ltd (ASX:TTY) has an an iron ore operation in the Northern Territory. All of the Company’s assets are located in the Northern Territory of Australia where our projects have been identified. The Company's aim is to focus on consistent production and to pursue exploration strategies to further expand the resource base at Frances Creek. The current mine plan is scheduled to produce at an annualized production of 2mtpa.

Global demand for iron ore continues to grow, driven by steel production from China and improving demand from other major economies, including the emerging markets in the Indian sub-continent. The Company is well positioned to participate in this growth with a high quality product, quality exporting infrastructure and close proximity to China through the Port of Darwin.

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.

Frances Creek Project

Territory Resources’ 100%-owned Frances Creek hematite iron ore mine is located 200km south of Darwin near the township of Pine Creek and 15km from the Adelaide-Darwin rail line. Territory commenced production at Frances Creek in May 2007, and made its first shipment of iron ore to China in September 2007 – the first iron ore shipment from the Port of Darwin in more than 30 years.

Ore is mined from a series of open pits using conventional drill, blast, hydraulic excavator and truck methods and then crushed into a lump or fines product specification, transported to a rail siding and then loaded onto trains for transportation to the Company’s stockyard at Darwin Port.

Ore from Frances Creek is sold via a life-of-mine marketing agreement with the Company’s major shareholder, Noble Group, a global leader in supply chain management. Noble plays a key role as intermediary in the supply chain of iron ore into China, and currently trades around 20 million tonnes annually into the Chinese market.

In November 2008 Territory initiated a major drive to increase efficiency at Frances Creek, aiming to deliver consistent production of over 2 million tonnes of iron ore per annum and targeting a long term operating cost of US$50 per tonne.

This involved a comprehensive “Pit-to-Port” review of the entire mining operation, and delivered strong results with the Company now exporting at an annualised rate of 2.2 million tonnes of high grade lump and fines product per annum at a cost of US$55 per tonne. Territory is continuing to implement new initiatives to further drive efficiency at Frances Creek.

As at November 2009, total Indicated and Inferred Resources at Frances Creek were 9.5 million tonnes at 59.4% Fe with Probable Ore Reserves of 4.6 million tonnes at 59.9% Fe.

Mine For

iron ore

Location of operation(s)

Northern Territory

Address

Ground Floor , 23 Ventnor Ave
WEST PERTH, WA, AUSTRALIA

Phone

(08) 9483 5100

Email

Website

http://www.territoryresources.com.au

Last Updated

4/5/2011