Annual report for EL 10117, for the period 29 August 2003 to 28 August 2004

Abstract

This annual report describes all work carried out by Mithril Resource Ltd in Joint Venture with BHP Billiton on EL 10117, Mount Doreen K, Andrew Young Project during the annual period ended 28 August 2004. Exploration work on the tenement is aimed at discovering Proterozoic ultramaficmafic related nickel-copper mineralisation. Work during the period focussed on generating drill targets in areas of shallow cover via the collection and interpretation of geophysical data. Semi-detailed ground gravity surveys were undertaken across an area interpreted from the aeromagnetic data as being underlain by mafic rocks. A large residual bouguer anomaly was found to correspond with the aeromagnetic anomaly, supporting the interpretation of a large mafic-ultramafic intrusive body. Modelling of the gravity and aeromagnetic data identified five areas with densities higher than would be expected from gabbroic type rocks. The identified target areas are currently being further assessed and ranked to define potential drill targets.