Fifth annual report EL 8434 Nicker Yuendumu Joint Venture for the year ending 17 April 2005

Abstract

EL 8434 is located approximately 400 kilometres NW of Alice Springs in the Arunta region. Exploration Licence 8434 'Nicker' is the subject of a Deed for Exploration between the Central Land Council (CLC) and Yuendumu Mining Company NL (YMC), signed on 3 August 1996. On 29 September 1999, Tanami Exploration NL (TENL), a wholly owned subsidiary of Tanami Gold NL, entered into a Joint Venture agreement with YMC covering EL 8434 together with the Saxby tenements EL 8306, 8962 and 8966. Exploration during the fifth year of term included further drilling and rock chip sampling around the Dodger Prospect to test the surface gold anomaly discovered last year and to locate extensions of this mineralisation returning high Au, Cu, Pb and Zn values. The best results were 10.8 g/t Au and 12.2% Pb from rockchip samples. The mineralisation shows consistent strike length (480 m of outcrop and anomalous results for >4 km in RAB). The Aircore drilling, although disappointing overall, highlights that the mineralisation extends at depth as predicted from the outcrop. Slimline RC drilling showed down-dip continuity of exposed mineralisation. Drilling suggests a 10-20 m wide, planar mineralised zone dipping at ~30 to the southeast. Best Au results were 3 m @ 2.3 g/t from 18 m in NKC006, 2 m @ 1.0 g/t from 57 m in NKC009 and 3 m @ 0.9 g/t from 48 m in NKC004. Phase 2 RAB drilling further extended the strike extent of the Dodger mineralisation, with reasonable continuity of very anomalous results for over one kilometre. Broad anomalism is defined for over 4 km long corridor. This drilling also located an anomalous area not along strike from Dodger.