EL 22240 Morgan Fourth annual report 24 July 2004 to 23 July 2005

Abstract

A regional gravity survey was conducted over EL 22240 and surrounding tenure in 2003. Interpretation of the gravity data identified two low-order residual gravity anomalies that were tested this year by 6 shallow RAB drilling (totaling 126 m). Results were disappointing with both the gravity anomalies potentially explained by denser pisolitic gravel located within the first 1-3m of the all drill holes. There was no magnetic anomalism to support the gravity response. In terms of explaining the gravity anomaly (density contrast) it was a good result and adds to GRM's growing understanding and expertise in relation to interpretation and ranking of these often subtle and weak gravity anomalies. Exploration will continue within EL 22240, primarily to identify strike extensions to the Malbec West mineralisation. Geophysical interpretation of the Year 3 gravity survey data by the Giants Reef's Geophysicist continues including refined and reprocessing of the original data. No shallow gravity targets remain to be drill tested.