Year 2 annual report for EL 24081 'Taylor Creek', for the period 20 July 2005 to 19 July 2006

Abstract

Exploration Licence 24081 'Taylor Creek' covers an area of 339.5km2 and is located approximately 160km south of Tennant Creek in the Northern Territory. The licence was initially granted to Anglo American Exploration (Australia) Pty Ltd and then transferred to Continental Nickel NL, a fully owned subsidiary of Goldstream Mining NL on 9 September 2004. During the reporting period 20th July 2005 to 19th July 2006, an independent consultant geologist was employed to conduct a geological reconnaissance and to assess the nickel potential of the licence area. The study determined that geophysical and geochemical surveys would be required to identify prospective mafic / ultramafic units within the licence area. Magnetic highs in the SE corner of EL24081 are slightly discordant to the local metasediments. The area is overlain by sand dunes and will need to be tested by drilling or ground EM survey.