Annual exploration report for ERL 89 for period ending 18 September 2006 Big Howley Burnside Project NT

Abstract

During the year work included database integration/validation, which identified some errors in the drillhole nomenclature, and these drillholes were also converted from local grid coordinates to MGA94 Zone 52 coordinates. The resource at South Ridge requires further modelling and drilling to determine whether it is economically feasible as a 'stand alone' resource, or be part of a 'superpit' encompassing the Chinese Howley/Mottrams resource along strike to the south. Data integration into DataShed will continue. Data validation is required before the data can be used for resource estimation, and this work is in progress. A ground check is required as a further validation, and it is envisaged that these holes will be added to the feasibility work on the Chinese 'superpit' area. Additional work will involve the generation of a geological wireframe and, if warranted a resource model. A further review is also required to determine the ranking of the South Ridge deposit with current gold prices, and with its close proximity to the other Howley deposits. Further drilling should follow from the review, to follow-up on the NW-trending geochemical anomaly, and as infill/confirmation drilling of previous intercepts.