2006 Annual report on Exploration Licence EL 22206 AuQuest Project period beginning 22 October 2005 and ending 21 October 2006

Abstract

Renison Consolidated Mines NL has been developing an exploration strategy in the Northern Territory since 1999. This strategy includes targeting dislocations that host economic gold mineralisation within regional structures that intersect known stratigraphical and structural features of the Pine Creek Geosyncline. EL22206 forms a part of a regional package of tenements (AuQuest Project) that have a northwest trend, covering what the Company has called the Noonamah-Corroboree trend. Processing of Northern Territory Government supplied 400m spaced aeromagnetic and radiometric data has significantly enhanced the detail of the underlying geology and the subsequent interpretation of the prospectivity of that area. Over the past three years, the Company's focus in the Northern Territory has been the development and subsequent operation of Stage 3 of the Quest 29 dump leach operation during 2003/04, and the completion of the resource drilling, feasibility study and start of underground mine development at Tom's Gully which will produce approximately 40,000ozpa of gold. Approximately $2.5m has been spent on ground at Tom's Gully and other tenements within the AuQuest Project, as part of the company's exploration strategy, over the previous 18-month period. The Feasibility Study on Tom's Gully Underground has been completed and underground development started in September 2005 with the mill currently undergoing final commissioning. Quest 29 and Tom's Gully are part of the AuQuest project, which covers approximately 1000 square kilometres of exploration licenses including EL 22206. It is expected that exploration on these EL's will find additional open cut ores which can be treated through the Tom's Gully plant and exploration has focused on these EL's and targets during 2005. Work completed on this tenement has comprised literature reviews and initial data entry to GIS of historical work. EL 22206 was applied for in 1999 and has been held up in Native Title until recently. The tenement comprises 2 blocks covering 6km2 and is located west of and neighbouring Tom's Gully. The southern block of this EL has had and MLN Application applied for as part of the Tom's Gully Underground Extension. Stream sediment anomalies associated with the contact of the Wildman Siltstone and Koolpin Formation along an anticlinal closure will be followed up during the dry season of year 4. A subtle northeast - southwest trending aeromagnetic lineament visible north of Toms Gully passes through the centre of the tenement; this feature may be a conduit or channel for mineralising fluids as three stream sediment anomalies occur in alignment just to the west of the lineament and will be sampled. Further to the southwest outside the licence a highly anomalous lag sample occurs where this magnetic lineament intersects the northwest trending Noonamah - Corroboree magnetic low basement lineament. This trend will be further investigated over the coming dry season. Further detailed geological mapping and rockchip traverses are proposed. The potential for finding further minable resources within the Mount Bundey Area is still considered very high. The southern block will be relinquished when the MLN is granted however further work on the possible extension of the Tom's Gully Underground resource will continue up until this time.