Annual report for EL 9501 year ended 12 September 2004

Abstract

Ausmet Resources Ltd has entered into a joint venture with Savanna Mineral Resources Pty Ltd, a wholly owned subsidiary of New World Alloys Ltd covering a group of mineral exploration tenements near Batchelor, Northern Territory. Ausmet considers that these tenements are under-explored for gold and base metals as a result of Savanna's primary focus having been on the magnesite potential of the area. Since executing the joint venture agreement and following a successful listing on the ASX Ausmet has completed a detailed review of the project both by data review and field inspection. This review has assessed the data on the area with a view to identifying targets deserving further testing for gold and base metals. Several general target areas have been identified and an outline of a recommended testing programme has been developed. The programme is expected to involve mapping, rock chip sampling, sampling of existing drill holes, RAB drilling and RC drilling. It is expected that the first phase of this work will be undertaken during the current field season. A useful project review id appended to this report.