Annual report for the Tanami Project for the year ending 31 December 2003

Abstract

This annual report for the Tanami Project details all exploration activity conducted over the project licences during the calendar year for 2003. Exploration in 2003 focussed on fewer higher priority targets. Consequently, the nearmine targeting was reviewed and allocated to the 4 main target areas within 20 km of the Callie and Granites operations Callie Trend, Anomaly 2 Trend, Symington Trend and Grimwade Trend. Extensive exploration completed on the 3 licences in 2003 highlighted a number of prospects and new targets worthy of further work in 2004. These include - Ivy South Reconnaissance RAB drilling of a geochemical soil anomaly intersected goldbearing quartz veining hosted by high grade metasediments of the Dead Bullock Formation, similar to that which hosts economic Au mineralisation at The Granites, located 1 km to the north. Results are low (peak 1.8 ppm Au), however the structural setting is considered favourable, and the prospect will be tested with infill and extension RAB drilling in 2004. Pegasus Prospect Pegasus is located approximately 15km to the west of The Granites mill and infrastructure. The prospect was discovered as a result of reconnaissance RAB drilling completed on a low tenor Au-in-soil geochemical anomaly defined in 2003. The prospect lies along strike to the west of previously defined near-surface Au mineralisation at the Anomaly 2 prospect. Results include 9m @ 2.7 g/t Au. Further drilling is planned for 2004 to define the strike and depth extent of the mineralisation. Grimwade North and Du Loc prospects these are located approximately 20 km to the south of The Granites mill. Exploration in 2003 comprised semi-regional vacuum and prospect-scale RAB drilling. At Du Loc the drilling highlighted a north west trending zone of moderate to intense quartz veining (100 m to 200 m wide by greater than 1.3 km strike length), that is coincident with an interpreted anticline axis evident in airborne magnetics, along with strong arsenic / gold in the DSL sampling (As 80 to 327 ppm, Au 5 ppb to 114 ppb). Current drilling at Grimwade North has intersected quartz-sericite (-biotite) schist hosting significant dolerite intrusion. The dolerite appears to be the source of a linear magnetic feature evident in the high-resolution magnetics, and is co-existent with both geochemical soil and vacuum drill-derived Au anomalies. RAB drilling of the dolerite intersected up to 20 metres (downhole width) of quartz veining and 2-5% disseminated sulphides in several holes, with weak Au anomalism to 0.3 ppm. Exploration of the 3 licences in 2004 will continue at a similar level to this season. These licences are the core focus of regional exploration in close proximity to The Granites milling infrastructure, and remain a high priority. In 2004 the exploration programs will aim to define new gold resources on the current prospects using RAB, RC and diamond drilling. Generation of new targets will also be undertaken through regional-spaced geochemical surveys using in-house proprietary techniques, along with the application of airborne and ground-based electrical geophysical surveys (IP and EM). Newmont's geological and structural understanding of the Tanami region will also be advanced with the progression of the regional structural mapping and synthesis program currently underway by RSG-Global Pty Ltd.