Partial relinquishment report for EL 10348 'Lillies Bore', 23rd January 2001 to 22nd January 2004

Abstract

Exploration Licence 10348 was granted on the 23rd of January 2001, for a period of six years. EL 10348 is located some 50km north west of the Tanami Mine. At the end of the third year of tenure it was decided to relinquish ground because the areas to be relinquished were seen as having low prospectivity for hosting an economic deposit of gold. Also due to the high tenement costs encountered this year, there is a need to 'drop off' the least prospective ground to focus our exploration dollars in the areas of substantially higher prospectivity. The ground was reduced from 134 blocks (417 km2) to approximately 93 blocks (289 km2). The relinquished ground included 31 regional surface samples where the results were less than 0.5 ppb Au. The surface samples were taken in bulk on an approximate 2 km x 2 km grid by Stockdale. The samples were taken using a helicopter. These samples were purchased by Otter Gold NL and assayed with the ALS ZARG technique (0.1ppb Au detection). An assessment of the Exploration License was made and the decision was made to partially surrender EL10348 on the 22nd January 2004.