MCC 346 Eldorado North Final Report 8 July 1989 to 13 January 2003

Abstract

MCC 346 Eldorado North, formed part of a Joint Venture between Newmont Wiluna Gold Pty Ltd (Newmont) and Giants Reef Mining Limited (Giants Reef) over numerous tenements in the Tennant Creek goldfield. The Mineral Claim, although not contiguous, is worked as part of the Eldorado Group, together with Mineral Claims C220 - C222. The Top End Joint Venture was established by agreement between Giants Reef and Newmont on the 1st January 1994 with Giants Reef as operators with the right to earn equity in the tenements by funding exploration. Giants Reef has continued to sole fund exploration expenditure and Newmont diluted their interest by not contributing. At the conclusion of the Joint Venture in January 2003, Giants Reef had earned 60% interest in the tenements covered by the agreement. Targets were Tennant Creek-style magnetite ironstone associated gold and copper ore bodies. This report details the exploration work carried out on Mineral Claim C346 Eldorado North, during its fourteen years of tenure, from 8th July 1989 to 13th January 2003, when the Claim was surrended. Activities over the Mineral Claim C346, during its fourteen years of tenure included data evaluation, gridding, geological mapping and rock chip sampling, geophysical surveys, analysis and interpretation, panning of spoils, percussion drilling, and project and tenement reviews. Exploration activities during the fourteen years of tenure identified two noteworthy anomalous areas. Percussion drilling beneath the old workings in the northern part of the Mineral Claim intersected ironstone, however did not return ore grade mineralisation. Magnetic modelling of the 1998 Normandy aeromagnetic data identified a blind magnetic target in the south-central part of the claim. Giants Reef proposed to drill this magnetic anomaly yet due to a pending Joint Venture decision between Newmont and Giants Reef the drilling was postponed. In September 2002 an internal review of the Giants Reef tenement portfolio and a classification of exploration opportunities included a detailed assessment of the Top End Joint Venture tenements. Giants Reef decided to forfeit the Joint Venture tenements based on the lack of productivity of the venture, given its long life span, coupled with the low to moderate exploration potential of the tenements relative to defined high-priority exploration targets. With the termination of the Top End Joint Venture between Giants Reef and Newmont in December 2002, all the tenements subject to the Joint Venture were surrended. Mineral Claim C346 was surrended on the 13th January 2003.