First annual report for exploration licences EL 8012, EL 9477, EL 9759 and EL 9992, 6th July 1998 to 5th July 1999. SEL 10188, 6th November 1998 to 5th July 1999

Abstract

Within EL 8012 initial soil sampling was completed at a 400m x 400m grid over prospective units and obtained a coherent anomalous zone of 2ppb - 20ppb Au with a peak of 765 ppb Au. Which was infilled with 50 x 25m soil sampling which did not define nor replicate the original results. At the Isabella prospect posthole drilling defined a small clustered anomaly to 37 ppb Au. Whithin EL9477, soil sampling was completed at a 800 x 800m pattern over interpreted granite terrain, results were low ie 0.05 - 0.2ppb Au. Within EL9759 regional soil sampling was completed at a 400 x 400m pattern with some results obtained in excess of 1ppb however the highest was 2.4ppb Au. In EL10188 regional soil sampling was completed at a 400m x 400m pattern with some infilling at 50 x 25m, some prominning values were obtained ie. 22.3 and 14.3 ppb Au. Posthole drilling was completed along 4 lines at Monarch North with values obtained to 8ppb Au within saprolitic material. At the Hinge - Cheeseman prospects 200m spaced posthole drilling was completed, with results reflecting the original amoalism, four anomalous areas are indicated to 22ppb Au. At the charlotte area posthole drilling was infilled to 400m with the spacing at 50m, a broad area of low level anomalism was defined, generally less than 10ppb with a peak of 83ppb Au. At the Monarch prospect RAB and RC drilling was completed over a coherent surface anomaly, no mineralisation was obtained. In EL9992 regional soil sampling did not detect anomalis outside MLS180. Prior to the grant of MLS180 a substantial amount of exploration was completed. At the Bonsai prospect a futher 3RC holes were completed with some significant intersections made ie. 15m @ 7.82 g/t Au, however the mineralisation is poddy in this area with a resource of 25000 ounces at a grade of 1.9 g/t Au. Posthole drilling at Bonsai South only obtained low order anomalism, highest 10ppb Au. At Bonsai North five fences of RAB drilling was completed with 3 fences obtaining low grade mineralisation ie 6m @ 1.12 g/t Au and 6m @ 1.42 g/t Au. An anomalous zone north-west of Bonsai North was further evaluated by 6 RAB lines, only 2 lines intersected low grade mineralisation ie 12m @ 1.14 g/t and 6m @0.5 g/t Au. At Marlena Prospect 10 angle RAB hole lines were completed, with alternate lines obtaining generally low grade mineralistion ie. 12m @ 0.80 g/t Au, 4m @ 10.98 g/t Au. At Marlena's Nose 5 fences of RAB lines were completed with mineralisation obtained along each fence, the better results include 8m @ 0.72g/t Au, 7m @ 0.98g/t Au and 4m @ 4.17g/t Au. The latter result was targetted by 3 RC holes, with the better result being 11m @ 3.22 g/t Au. At Banjo North 6 fences of RAB holes were completed with only 2 lines obtaining mineralised intercepts, better results include 6m @ 0.59 g/t and 12m @ 1.14 g/t Au. Resource drilling at Beaver Creek prospect included an additional 30 RC holes and a resource was calculated at 570 000 tonnes @ 3.9 g/t Au for 71500 ounces. Angled RAB drilling within the proposed Beaver Creek pit obtained significant intercepts at the margin of the pit indicating a possible parallel trend to the Beaver mineralisation ie. 6m @ 2.84 g/t and 3m @ 4.09 g/t Au. At Banjo and Banjo North resource definition drilling is continuing but is difficult due to the poddy nature of the mineralisation.