Annual Report for EL 23395 for the year ended 16 November 2004

Abstract

Through compilation efforts, Falconbridge (Australia) Pty Ltd identified the north-central Arunta as being favourable to host Proterozoic, intrusive related, magmatic Ni-Cu-PGE sulphide mineralisation. The area has seen little historic work and has not been the focus of dedicated nickel sulphide exploration in recent years. In October 2003, upon successful listing on the ASX, Discovery Nickel Limited (DNL) acquired a 100% interest in Falconbridge's Arunta Project tenements through a Heads of Agreement, including EL 23395, which was under application at this time. On 17th November 2003, EL 23395 was granted to Discovery Nickel Limited (DNL). In October 2004, DNL commissioned Fugro Airborne Surveys to complete an airborne EM (GEOTEM) survey within EL 23395. The EM survey was completed but the data has not been processed, interpreted or modeled by DNL to date.