Third combined annual report for EL 10077, EL 10101, EL 22165, EL 22583, EL 22589 and EL 22590, 25 September 2003 to 24 September 2004

Abstract

This combined report records the exploration work done on EL's 10077, 10101, 22165, 22583, 22589, and 22590 during their third year of tenure from the 25th September 2003 to the 24th September 2004. All six licences were granted to Giants Reef Exploration Pty Ltd on 20th October 2001, for a period of 6 years each. The EL's are subject to an Indigenous Land Use Agreement signed in September 2000 between the Native Title Holders of the Tennant Creek region, represented by the Central Land Council, and Giants Reef. 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. Work completed over the EL's in the third tenure year involved no on-ground exploration. Giants Reef's commitments in establishing mining operations at Chariot, Edna Beryl, Cats Whiskers and Malbec West prevented further exploration over these EL's. During the past six months Giants Reef have sought to rectify their lack of geological personnel and have employed four senior project geologists and are currently advertising for another geologist. A desk top evaluation of the prospect was undertaken to assess the potential of the EL's to be included in a joint venture packaging of tenements. Given the location of the EL's to Giants Reef's operaional Edna Beryl mine and within the same structural corridor, the licences were excluded from the group of joint venture tenements. Additionally, the Whippet East and Winsome Wally prospects were noted as areas of review for exploration targets. In August 2004 Giants Reef Exploration submitted a Mining Management Plan (MMP) for Exploration within the Northern Project area, which spans from White Devil in the west to the Whippet prospect in the east. Approval of the MMP was granted on the 14th October 2004, and this will initiate a new phase of exploration by Giants Reef within the Northern area of the Tennant Creek field.