Third combined annual report for EL 8879, EL 9930, EL 10113, EL 10118 and EL 22285 20 October 2003 to 19 October 2004

Abstract

This combined report records the exploration work done on EL's 8879, 9930, 10113, 10118 and 22285 during their third year of tenure from the 20th October 2003 to the 19th October 2004. Exploration within EL's 8879, 9930, 10113, 10118 and 22285 is aimed at discovering typical Tennant Creek-style gold deposits or gold-copper deposits within ironstone of the Warramunga Formation. The combined licence area is considered by Giants Reef as having the potential to host shallow, high grade oxide gold within haematite-magnetite ironstone. At present little work has been conducted over the EL's by Giants Reef, and a thorough assessment of the licence areas will be made in the next tenure year to identify target areas with the view to reducing the size of the EL's, and retaining only the areas of definite interest. A reconnaissance trip was made to EL 8879 area during the third tenue year identifying the Hopeful Star prospect. Review of the Hopeful Star prospect indicated that the prospect falls within an exclusion zone within the licence area, however modelling and assessment of the mineralisation has lead to a greater understanding of the local mineralisation structures of the EL. The White Hill Bore geochemical anomaly will be reviewed in the next tenure year with the view to undertaking the program in the next tenure year. During the third tenure year MCC 1350 surrounding the New Moon mine was allowed to expire, and consequently this ground is being explored under EL 9930. Collation of digital data identified a number of small geochemical anomalies with a NW-SE strike over the New Moon mine workings, which will further be assessed in the next tenure year. Vacuum Au anomalies were investigated over EL 10113 area utilising the GIS database. A number of anomalies were noted outside of the Claim and Lease blocks, including a westerly anomaly from the True Blue prospect and a vacuum anomaly over the Mammoth workings. These geochemical anomalies will be taken into account when reviewed for oxide Au potential in the next tenure year. During the third tenure year a ground gravity survey was conducted at the southern end of the EL within the New Hope tenements. Gravity station readings would have been taken on the border of the EL or possibly extending into the EL. The gravity survey data is currently being processed and modelled. This may potentially generate gravity targets extending out north into EL 10118, for follow up exploration in the fourth tenure year. Results from the gravity survey will be presented in next years annual report. Giants Reef have decided to proceed with the granting of the Mineral Lease Application 22284 Billy Boy, which is located due north of EL 22285, resulting in technical and geological implications for the strategic future of the Licence. Development and exploration within this Lease would lead to greater proximal geological understanding and extend out to exploration within EL 22285. Furthermore, construction of access tracks would be required through EL 22285.