Combined annual report for EL 9520, EL 9521, EL 9522, EL 9523 and EL 954 for the year ended 17 July 2004

Abstract

This first annual report summarises the exploration work carried out on five Exploration Licences (9520-9524), Andrew Young JV Project, Northern Territory during the annual period to 17 July 2004. The Project forms part of a Joint Venture between BHP Billiton Minerals Pty Ltd (BHPB) and Southern Tanami Exploration Pty Ltd (STE). The Project area is located approximately 400 km west of Alice Springs and is being explored for magmatic Ni-Cu within the ~1640Ma Andrew Young Igneous Complex (AYIC). Work during the period included: - Land Access Agreement with the Lake Mackay Aboriginal Land Trust, Yunkanjini Aboriginal Land Trust and Haasts Bluff Aboriginal Land Trust. - Identification of 28 priority EM targets from the 25Hz GEOTEM survey flown in 1999. - Site clearances with the Central Land Council (CLC) over the target site areas. - Ground TEM (Moving Loop EM) over 10 high priority targets. - Orientation surface geochemical sampling (magnetic lag sampling). - Drilling of 9 holes to test 8 targets for a total of 1602m. - Ground TEM (fixed loop) and down-hole EM. - Petrological studies on selected drill chips. - Rehabilitation of drill sites. During the second annual period a structural-geological review of the aeromagnetic and gravity images will be undertaken to highlight geological targets (feeders) that could have associated poorly conductive to non-conductive network to disseminated mineralisation.