MCC 866 to MCC 879, MCC 1150 to MCC 1155 and MCC 1191 Jubilee Group Final report December 2002

Abstract

Mineral Claims C866 - C879, C1150 - C1155, and C1191 Jubilee Group, are part of a Joint Venture between Newmont Wiluna Gold Pty Ltd (Newmont) and Giants Reef Mining Limited (Giants Reef) over numerous tenements in the Tennant Creek goldfield. These claims, although not contiguous, are worked as part of the Jubilee Group, together Mineral Claim C242. The Top End Joint Venture was established by the Joint Venture Agreement on 1st January 1994 with Giants Reef as operators with the right to earn equity in the tenements by funding exploration. Giants Reef has continued to sole fund exploration expenditure and Newmont is diluting its interest by not contributing. At present Giants Reef have earned 60% interest in the tenements covered by the agreement. Targets were Tennant Creek-style magnetite ironstone associated gold and copper ore bodies This report summarises the work completed on Mineral Claims C866 - C879 during their fifteen years of tenure from 8th August 1988 to 31st August 2002, and the work completed on Mineral Claims C1150 - C1155, C1191 during their ten years of tenure from 30th December 1993 to 31 December 2002. Work conducted during the fifteen year tenure on Mineral Claims C866 C879, and the ten year tenure on Mineral Claims C1150 C1155, C1191 has consisted of lag sampling, rock chip sampling, girding, ground searches and geological mapping, vacuum drilling, RC percussion drilling, open hole percussion drilling, geophysical surveying and assessment, technical data and literature reviews. The Mineral Claims C866 C877, C1150 - C1155, and C1191 are considered by Giants Reef to be situated in a prospective area given their close proximity to the Jubilee mine and the Mary Lane Shear. Exploration over the Mineral Claim area has identified a number of geochemical anomalies, either through surface lag sampling or vacuum drilling to bedrock. Preliminary rotary air blast drilling at Jubilee, Mt Otto and Mary Lane failed to intersect economic mineralisation. Giants Reef consider these anomalies as not fully tested and require detailed geophysical assessment and structural mapping. In July 2002 an internal review of the Giants Reef tenement portfolio and a classification of exploration opportunities included a detailed assessment of the Top End Joint Venture tenements. Giants Reef decided to forfeit the Joint Venture tenements based on the lack of productivity of the venture, given its long life span. Also taken into consideration were Giants Reefs landholding in the Tennant Creek Goldfield, and that many of the Joint Venture claims when surrended, would fall into Exploration Licences held under Giants Reef. The termination of the Joint Venture in December 2002 thus resulted in no further renewal of Mineral Claims C866 - C879 at their expiry of the fifteenth year of tenure, and Mineral Claims C1150 - C1155, and C1191 at their expiry of the tenth year of tenure on the 31st December 2002. The Mineral Claims C866 C877, C1150 - C1155, and C1191 will fall into Giants Reef?s Exploration Licence 22868 North Jubilee. The Mineral Claims C878 - C879 will fall into Giants Reefs Exploration Licence 10095 Head Waters.