EL 10103 'Warramana', EL 10317 'Yalco', And EL 10329 'Yalco 1' Combined Second Annual Report for the period 5/06/2003-4/06/2004

Abstract

Exploration Leases 10103 'Warramana', 10317 'Yalco' and 10329 'Yalco 1' cover a combined area of 1,275km2 and are located within the McArthur Basin near the Gulf of Carpentaria, Northern Territory, approximately 25 km northwest of Borroloola, on the Bauhinia Downs and Mount Young 1:250,000 map sheets. Rio Tinto Exploration Pty Ltd acquired the leases as a result of its takeover of North Mining Ltd during 2000. All three leases were granted on 5th June 2002 for a period of six years. During Year 2 of the leases, the Batten Trough Farm In and Joint Venture Agreement was entered into between Rio Tinto Exploration Pty Ltd (North Mining Limited and other Rio Tinto companies) and Anglo American Exploration (Australia) Pty Ltd.Since the Agreement with North Mining (Rio Tinto) was signed, work carried out by Anglo American Exploration (Australia) on EL 10103, EL10317 and EL10329 has comprised of a review of all previous exploration in the Batten Trough dating back over 40 years, reinterpretation of this data, selection of suitable target areas with the potential to host 'world-class' orebodies, negotiation and submittal of work programs to the AAPA and Northern Land Council (NLC) to allow target testing to occur during the 2004 field season, organising ground access, and minor reconnaissance work and logistical preparation for the current field season. There was little opportunity to undertake field work in 2003 due to the Joint Venture agreement with the Rio Tinto group being finalised late in the field season. 2004 field activities have been delayed until June due to an excessively long wet season; this field work had originally been planned for April.