Annual report for EL 23629, year ended 6th March 2004

Abstract

Exploration work in EL23629 is aimed at discovering nickel dominated polymetallic massive sulphide systems.in the north Arunta complex in sulphidic Proterozoic sedimentary sequences on an Archean/Proterozoic boundary zone that have been intruded by late mafic sills. Quaternary and Tertiary cover of variable thickness, conceal large areas of bedrock in the area and although the region has seen some exploration for a variety of commodities (including gold, copper, iron ore, and diamonds) the evaluation of the nickel potential of the area has been very limited to date. EL23629 was originally granted to Falconbridge (Australia) Pty Limited, but 100% interest was transferred to Discovery Nickel Limited pursuant to a Heads of Agreement dated 15 October 2003 and following the successful listing of Discovery Nickel on the Australian Stock Exchange in December 2004. Work completed in the area to date includes negotiating an access agreement, compilation of historic and regional datasets and the flying of priority areas with Airborne Electromagnetic (AEM) surveys. This report provides a summary of this work for the first 12 months of tenure ended 6 March 2004 and focuses on the results of an Airborne electromagnetic and magnetic survey.