ML 23216 and MLCs 176-177 First annual report 19 July 2002 to 18 July 2003

Abstract

Mineral Leases 23216 and C176-C177 Chariot, totally enclose the non-magnetic haematite-rich Chariot gold deposit. The Leases are centred on the magnetic structural ridge extending from the Extension mine. An orientation gravity survey was conducted over several tenements in the Chariot area including ML 23216 and C176-C177. This was followed by a regional gravity survey over the surrounding tenure of the Mineral Leases. Geophysical modelling of the gravity results are encouraging with several new target areas identified. These targets were recommended for immediate drill testing. Two RC drill holes targeted a gold in soil anomaly over the northeastern corner of the proposed Chariot waste dump. Ironstone material (gravel and pebbles) was intersected on the base of the paleosurface in both holes. A gold anomalous horizon (1-2 @ 1.0 g/t Au) at 5-10m was intersected in both RC holes. Hole CHRC271 returned 1m @ 2.94 g/t Au from 3m. Both holes were down hole magnetically logged and showed no off-hole response. An open cut was commenced and completed during the period 19th January 2003 to 10th April 2003. Approximately 19,000 tonnes of ore was mined at a grade of 10.4ppmAu and stockpiled at the mine site. Of the pre-mining reserve (433,618 tonnes at 14.5ppmAu), 406,904 tonnes remain to be mined, entirely from underground, at an average grade of 15.1ppmAu.