Fourth combined annual report for EL 8773 Lasso and EL 8786 First Light 8 March 2002 to 7 March 2003

Abstract

On 13 June 2001, Giants Reef Exploration Pty Ltd, a wholly owned subsidiary of Giants Reef Mining Limited, purchased all of the shares in Normandy Tennant Creek (NTC) from Normandy Consolidated Gold Holdings Pty Ltd, a subsidiary of Normandy Mining Limited. As a result of this, NTC is now a wholly owned subsidiary of Giants Reef and has had its name changed to Santexco Pty Ltd. Targets are ironstone-related gold-copper deposits. A number of magnetic anomalies in EL 8773 have been identified by Giants Reef using the data from a detailed aeromagnetic survey flown by Western Mining Corporation in 1993. No geophysical modelling has been completed by Giants Reef on the magnetic anomalies in EL 8773. Preliminary research and assessment has shown that these anomalies are one of a number of anomalies of similar intensity along a subtle east-west 'magnetic ridge. The 7300 West prospect in the eastern part of EL 8786 is considered by Giants Reef as a prime exploration target, based on analogy with the Nobles Nob mine. Magnetic modelling of the 7300 West magnetic source in EL 8786 indicated a depth to the causative body of 840m, but this does not detract from the nonmagnetic Nobles Nob exploration model. A work program was approved by the CLC for a 10 hole drill program at the 7300 West prospect in March 2002. Also a Mine Management Plan for the proposed drill program was submitted to the Department of Business Industry and Resource Development which was subsequently approved. As a result of Giants Reefs commitments being focused elsewhere in the goldfield, the proposed drill program was postponed for the 2002 field season. An internal review of the Giants Reef tenement portfolio and a classification of exploration opportunities in September 2002, ranked both EL's as moderate priority exploration targets, and recommended for retention by Giants Reef. Giants Reef intends to test the 7300 West prospect during the 2003 field season by RC drilling. Geophysical modelling of the magnetic anomalies in EL 8786 will also be undertaken with the view of follow up drill testing if warranted.