Annual report for MLC 512-517, MLC 521, MLC 525-526, MLC 531-534, MLC 537-545, MLC 548-550, MLC 556, MLC 589-590, MLC 688-691, for the period ending 31 December 2004

Abstract

This report details exploration undertaken by Sitzler Savage Pty Ltd, the holder of the tenements MLC's 512 - 517, 521, 525 - 526, 531-534, 537 - 545, 548 - 550, 556, 589 - 590, and 688 - 691. These tenements constitute the Nobles Nob group of 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 for the orebody below the open-cut was made using this model. During 2004, a continuing study of company and mine records held at Peko's Tennant Creek office, open file company and other technical reports held at the Northern Territory Mines Department offices in both Darwin and Alice Springs was carried out. 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. 3D inversion of the gravity and magnetic data has been undertaken by Southern Geoscience Consultants along with a 3D compilation of the 1D conductivity images from the Hoistem data. These have been combined into a 3D geophysical model ready for target selection. The ground TEM data has similarly been imaged using a 1D algorithm and sections inserted into the 3D model. A routine was written to convert the binary Datamine drilling and assay files into a readable format with the intention of adding the available drilling information to the 3D model to help rank targets. Unfortunately the poor state of the survey information for some of these holes has caused some problems with this process and the holes have not yet been included in the model. Once this is done targets selected for follow up from the geophysics can be checked to ensure they have not yet been drilled. Approximately $123,000 has been spent on data review, travel and fieldwork on the 32 Nobles Nob tenements. This equates to approximately $3,800 per tenement. These costs are exclusive of costs associated with the Peko Tailings Project, of which the Nobles Nob tenements form an integral part of the tenement package.