2004 Annual report for EL 9161, period beginning 2 August 2003 and ending 1 August 2004

Abstract

Renison Consolidated Mines NL has been developing an exploration strategy in the Northern Territory since 1999 targeting dislocations within regional structures that intersect known stratigraphical and structural features that host economic gold mineralisation within the Pine Creek Geosyncline. EL 9161 forms a part of a regional package of tenements (AuQuest Project). Processing of Northern Territory Government supplied 400 m spaced aeromagnetic and radiometric data and a small 200 m line spacing aeromagnetic survey carried out by the Company over the tenement has significantly enhanced the detail of the underlying geology and the subsequent interpretation of the prospectivity of that area. Over the past two years, the Company's focus in the Northern Territory has been firstly, the development and subsequent operation of the Quest 29 dump leach operation and secondly on completing the feasibility study on an underground mine development at Tom's Gully producing approximately 40,000 ozpa of gold. Approximately $1.5m has been spent on exploration and the associated feasibility study components at Tom's Gully. The Feasibility Study is due for completion in September 2004. Quest 29 and Tom's Gully are part of the AuQuest project, which covers approximately 1100 square kilometres of exploration license including EL9161. EL 9161 is thought to host down dip mineralisation of the Tom's Gully Reef, drill hole TGD 327 drilled by Carpentaria in 1992 intersected the reef system with minor mineralisation, this hole is located 100m north of EL 9161 boundary. During more recent drilling, hole TGD 374 intercepted the reef system and returned results of 1.9m @ 29.1 g/t, this hole is located 800 m north of the lease boundary showing continuity in high grade mineralisation trending towards EL 9161. The potential for the Tom's Gully reef extending into EL 9161 is considered very high and this will be further investigated once the feasibility study has been completed.