Mt Ringwood Project SEL 10012 2005/06 Annual report reporting period 27 November 2005 to 28 November 2006

Abstract

SEL 10012 is located approximately 110 kilometres southeast of Darwin, and 35km east of Adelaide River on the Margaret River (14/2-I) 1:50,000 scale and the Mount Ringwood (14/3-IV) 1:50,000 scale map sheets. SEL 10012 covers the areas which originally comprised four active exploration licences previously held by Northern Gold NL. These exploration licences were EL 8573, EL 8780, EL 9122 and EL 8887. SEL 10012 was granted on 28 November 2003 for a period of four years, with the ability for two further time extensions thereafter. A waiver from reduction application was submitted in June 2006. The waiver was granted in June 2006 for 12 months, enabling the 22 granticular blocks to be retained until November 27, 2006. While in recent years exploration and proposals for further work have focused on two gold anomalies at North Goodall and Cookies Corner, another area is now seen as highly prospective in light of the regional structural model. The southeastern blocks of SEL 10012, formerly covered by EL 9122, encompass the new target zone. Little work has historically been done in this area, and it is proposed that it be given high priority. Unfortunately the 2005/06 covenant, at $12,000, was not met. A total of $4,303.70 was spent due to two reasons, a major task to identify economic mineralization to commission the Union Reef Mill; secondly there were no geologists available to adequately work on the project. An aggressive campaign to recruit the exploration team was successful towards the latter part of the year. It is envisaged that the new year will be geared and more focused towards exploration. The desktop work completed has generated a focused approach and provides direction for next years exploration project work.