Year 2 Annual report for EL 10189, 23 July 2003 to 22 July 2004

Abstract

During the reporting period Striker Resources entered into a 'Letter of Intent' with Rio Tinto regarding EL 10189 and other licences surrounding the decommissioned Merlin Diamond Mine in the Northern Territory. Striker has agreed with Rio Tinto Ltd. to honour all existing commitments and arrangements that Rio Tinto Ltd. has entered into with respect to the exploration licences. Due to negotiations relating to the formal signing of the 'Letter of Intent' diamond exploration was limited to reassessing of geophysical datasets and 'fingerprinting' of diamonds previously recovered from bulk stream samples. The presence of repeatable micro diamonds and kimberlite indicator minerals within the drainages of the licence is worthy of further work. Follow-up bulk stream sampling is recommended and further work will depend on these results. Two high priority geophysical targets are also planned to be drilled during the next year.