Annual report for MCC 213, MLC 3, MLC 6-14, MLC 19, MLC 43-44, MLC 125-126, MLC 128, MLC 156-157, MLC 507, MLC 509-510, MLC 519, MLC 664-667, for the period ending 31 December 2004

Abstract

This report details exploration undertaken by Sitzler Savage Pty Ltd, the holder of the tenements MCC 213, MLC's 3, 6-14, 19, 43-44, 125-126, 128, 156-157, 507, 509-510, 519, and 664-667. These tenements constitute the Peko tenements for the 12 month period ending 31 December 2004 and form part of the Peko Tailings Project, managed by Peko Rehabilitation Project Pty Ltd. All other non-exploration activities undertaken on the Peko Tailings Project are detailed in the Mining Management Plan, which is submitted annually as a separate report by the operator, Peko Rehabilitation Project Pty Ltd, a subsidiary of Sitzler Savage Pty Ltd. All the drilling data compiled from various Normandy digital databases was collated and compiled into a single dataset. This data was then used to create a digital block model and a resource estimate was made using this model. During the calendar year 2004, a continuing study of company and mine records held at Peko's Tennant Creek office as well as open file company and other technical reports held at the Northern Territory Mines Department offices in both Darwin and Alice Springs. Various digital reports of aeromagnetic, gravity and other geophysical surveys conducted in the Tennant Creek region were located. Southern Geoscience Consultants were commissioned to compile and process this data and identify and rank exploration targets within the Peko, Juno and Nobles Nob tenement blocks. During the past year approximately $780,000 has been spent on data review, travel and fieldwork as well as research and development on the 27 Peko tenements. This equates to approximately $28,900 per tenement. These costs include $504,00 costs associated with the Peko Tailings Project, of which the Peko tenements form an integral part of the tenement package. The work associated with this expenditure is reported separately within the Annual Reports for the Peko Tailings Project as prepared and submitted by Peko Rehabilitation Project Pty Ltd for the year 2004.