EL 23286 Corridor 3 First annual report 30 September 2002 to 29 September 2003

Abstract

Exploration Licence 23286 Corridor 3, is located directly east of the TC8 mine and approximately 6km east of the currently developing Chariot mine. This report records the exploration work completed on EL 23286 during its first year of tenure, from the 30th September 2002 to the 29th September 2003. Targets are shallow haematite-ironstone related gold deposits. Exploration Licence 23286 is located approximately 6km east of the non-magnetic haematite-rich Chariot gold mine, and less than 1km east of the TC8 mine. The EL and the TC8 and Chariot mines are positioned on the magnetic structural ridge extending from the Extension mine (300t @ 19.5g/t Au) to TC8 mine (80,680t @ 18g/t Au and 1.2% Cu). Consequently the EL and surrounding tenure has been subject to much interest by Giants Reef for its potential to host orebodies of a similar size and style of mineralisation as Chariot mine. In the past tenure year Giants Reef have prioritised exploration along the Chariot trend line. This has involved detailed orientation and regional surveys, geophysical modelling of gravity targets and Reverse Circulation drill testing. No on-ground exploration was conducted over EL 23286. The quite limited but detailed gravity survey appears to have added a new dimension to Giants Reef's understanding of the non-outcropping geology and the distribution of non-magnetic ironstone bodies within the survey area. The fact that non-magnetic ironstones, hosting gold mineralisation are known to exist (Chariot deposit), yet have not really been searched for previously in the Tennant Creek Goldfield, means that the potential for new discoveries is highly likely. In the next year of tenure it is expected that the coverage of the gravity survey will be extended east over the Licence area. Results of the gravity survey will then be assessed to identify any potential exploration target areas.