EL 23286 Corridor 3 Second annual report 30 September 2003 to 29 September 2004

Abstract

Exploration Licence 23286 Corridor 3, is located directly east of the TC8 mine and approximately 6 km east of the currently developing Chariot mine. This report records the exploration work completed on EL 23286 during its second year of tenure, from the 30th September 2003 to the 29th September 2004. Targets are shallow haematite-ironstone related gold deposits. Exploration Licence 23286 is located approximately 6 km east of the non-magnetic haematite-rich Chariot gold mine, and less than 1 km 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. Interest has further increased with the recently discovered Malbec West Gold Mine (900 m west of Chariot) commencing production in September 2004. In the past tenure year Giants Reef have continued their prioritised exploration along the Chariot Mineralised Corridor (CMC). This has involved regional gravity surveys, geophysical modelling of gravity targets, diamond, RAB and Reverse Circulation drill testing. No on-ground exploration other than reconnaissance trips was conducted over EL 23286. A third stage of ground gravity survey has been proposed for the CMC, to extend the survey coverage east and west, covering EL 23286. In the next tenure year Giants Reef also intend to geologically map the Licence area and rock chip sample outcropping sites, to identify surface geochemical anomalies. Results of the gravity survey will be geophysically modelled and drill tested if warranted with the view to identifying shallow gold mineralisation.