EL 10199 Lynx Fifth annual report 7 April 2004 to 6 April 2005

Abstract

Exploration Licence 10199 Lynx, totally encloses the non-magnetic haematite-rich Chariot gold deposit. The Licence is centred on the magnetic structural ridge extending from the Extension mine (300t @ 19.5g/t Au) to TC8 mine (80,680t @ 18g/t Au and 1.2% Cu). Consequently the EL has been subject to much interest by Giants Reef for its potential to a host orebodies of a similar style of mineralisation as the Chariot mine. This report records the exploration work completed on EL 10199 during its fifth year of tenure, from the 7th April 2004 to the 6th April 2005. Targets are shallow haematite-magnetite ironstone related gold deposits. In the third year of EL 10199's tenure a regional gravity survey was conducted as part of a larger more regional survey. Several new gravity target areas were identified. A second gravity survey was undertaken in September 2003 completing the gravity section over the northern portion of EL 10199. This data generated several priority gravity anomalies and these areas were further enhanced with detailed modelling resulting in the decision that, apart from the magnetic Traminer ironstone there was considerable haematite ironstone proximal to this larger traditional style ironstone. This area was termed the West Traminer prospect. The West Traminer prospect was drill tested with 4 RC holes for an advance of 448m in Year 4. No alteration was seen and no ironstone was intersected. Given the strength of the West Traminer gravity response, the interpreted density contrast and the vicinity to the Traminer ironstone the Traminer West target remained of high interest and further work was recommended. During Year 5 thirty four RAB holes (TRRB031 to TRRB064) were drilled for and advance of 693 metres extending exploration of the West Traminer target. All holes were drilled to the south to a nominal depth of 21 metres. This drilling pattern was designed to further test shallow gravity anomalies previously identified during the September 2003 ground gravity survey carried over the area. Drilling intersected Warramunga Formation sediments however no alteration was seen and no ironstone was intersected. The gravity anomalies may be explained by a pisolitic iron horizon intersected in many holes at a consistent depth of 6-9 metres. No significant assay results were returned and results were considered disappointing. Exploration will continue within EL 10199, primarily to identify strike extensions to the Chariot Line (ie:Chariot East) and to continue the testing of a number of shallow gravity targets with the Licence area. Geophysical remodelling of the historical NTC data will commence during the next reporting period and it is anticipated that additional drilling will be proposed targeting the Traminer ironstone at depth.