Relinquishment report for EL 8823 Desertex Project, for the period 8 March 1999 to 8 March 2005

Abstract

EL 8823 was previously held by AngloGold Ashanti Australia Limited (AngloGold) and Newmont Gold Exploration Pty Ltd (Newmont) under the Desertex Joint Venture. In late 2004, Newmont withdrew from the joint venture, with 100% equity reverting to AngloGold. AngloGold subsequently relinquished 50% of the tenement on 8th March 2005 prior to the remaining portion of the tenement being acquired by Navarre Resources in late 2005. This report is submitted by Navarre Resources on behalf of the previous tenement holders and covers work completed prior to Navarre acquiring the tenement. This tenement covers a portion of the under-explored Babylon Field, considered as a lateral equivalent to the Tennant Creek Inlier, albeit under Wiso Basin cover sediments. The area is considered prospective for Tennant Creek Style Iron Oxide Copper Gold mineralisation. Work carried out over the relinquished portions of EL8823 includes two airborne surveys in 1999. The first survey comprises of an airborne geophysical survey and the second a colour photographic survey. Results of the geophysical survey suggested the relinquished portions of EL8823 are less prospective for typical 'Tennant Creek Style' Iron Oxide mineralisation. The photography shows the tenement area is dominated by extensive sand dunes development.