Annual report Year ending 20 June 2005 EL 9154 Rustler's Roost North

Abstract

Valencia Ventures Inc. initiated a review of all aspects of the Rustler's Roost project in October, 2002. This included a reevaluation of gold prospects at, and in the vicinity of, the Rustler's Roost deposit, including an assessment of gold mines and prospects held by other parties in the Mount Bundey area. The review identified the area between Rustler's Roost and the Tom's Gully Gold Mine as highly prospective. Much of this area was held under EL 9154 by Northern Gold NL. Northern Gold NL discovered four areas of gold anomalism in soils within EL 9154 in 2002. Late in 2003, agreement was reached with Northern Gold NL for RRMPL to earn an interest in EL 9154 by undertaking exploration. RRMPL decided to concentrate exploration in EL 9154 on the four gold anomalies of Northern Gold NL in 2004. An initial programme of detailed infill soil geochemistry over these anomalies was completed in June-July 2004. A zone of strong gold anomalism associated with an ironstone ridge was found at Anomaly 11. The gold anomaly extended over 250m in a NE direction and was 75m wide at >100ppb Au. Peak values of up to 1690ppb Au occurred in the zone compared to a background of <10ppb Au. The gold anomalism at Anomaly 1 represents the northern continuation of an anomaly previously tested in RRMPL's ground to the south and is related to the Tanya Anticline. The anomalous zone was 75-100 m wide at >100 ppb Au and extended over 400 m in a northerly direction from the northern boundary of MLN 1083. Peak values of up to 728 ppb Au occurred in the zone within a background of <10ppb Au. The anomaly is not considered to be indicative of near-surface economic gold mineralisation. Gold anomalism at Anomaly 9 is thought to be related to surface quartz veining. The main anomaly of >100ppb Au extended over an area of 150m long by 75m wide. Peak values of up to 909 ppb Au occurred in this zone. The Horseshoe Reef crops out at Anomaly 4 and is the likely source of the soil gold anomaly. High gold values were found adjacent to the reef with peak values of up to 1985 ppb Au. Twenty six drillholes were completed in October 2004 at anomalies 4, 9 and 11, with a total metreage of 1859 metres. Gomex Drilling undertook the work with a Metzke RC drilling rig. Samples were collected every metre and subsequently composited to two metres at the assay laboratory. Weak gold mineralisation was intersected at Anomaly 11 within a gossanous ironstone. The gold values explained the gold soil geochemistry anomaly. Gold mineralisation was intersected on each drill section over a strike length of 250 metres. The best results from the drilling completed at Anomaly 11 were RNRC004 - 26 metres @ 0.87 g/t Au, RNRC007 - 22 metres @ 0.37 g/t Au, RNRC010 - 34 metres @ 0.26 g/t Au, RNRC011 - 12 metres @ 0.5 g/t Au and RNRC012 - 7 metres @ 1.07 g/t Au.