Eighth annual report for EL 5418 (Rabbit Flat East), for the year ending 2-05-1997

Abstract

NFM has been encouraged by the recognisable similarities between the geology observed at area 2 and other tenements held by the company which have proven economic gold mineralisation, notably The Granites and the Dead Bullock Soak.

Work conducted during the eighth year of tenure has been successful in identifying an indicated resource at Minotaur and advancing two geochemical anomalies to mineralised prospect status with indications of significant potential.

A ground magnetic survey was conducted at Four Corners, which was used to guide the RAB drilling programme that followed. The RAB drilling followed up two geochemical anomalies identified by Zapopan. Preliminary results have failed to return any gold values >4ppb Au.

At Windy Hill work concentrated on Minotaur, Cerberus, and Chimaera. Work involved rock chip sampling, MMI sampling, RAB, RC and diamond core drilling, together with some ground geophysical surveys and costeanning. This work has further defined the mineralisation in all prospects.

An indicated resource of 840 000t grading 2.61 g/t and containing 70 600 ounces of gold using a 1.00g/t cutoff was defined for Minotaur during the work period. This was based entirely on NFM RC and diamond drilling data to a depth of 50 vertical metres.

Minotaur remains open in strike extent to the north and south, and has the potential for a further increase in depth extent of oxide-transition mineralisation and holds potential for primary gold within the Taurus Formation.