2006 Annual report on EL 23172, for the period beginning 6 May 2005 to period ending 5 May 2006

Abstract

Renison Consolidated Mines NL has been developing an exploration strategy in the Northern Territory since 1999 targeting dislocations within regional structures that intersect known stratigraphical and structural features that host economic gold mineralisation within the Pine Creek Geosyncline. EL23172 forms a part of a regional package of tenements (AuQuest Project) that have a northwest trend, which covers what the Company has called the Noonamah-Corroboree trend. It is expected that exploration on these EL's will find additional open cut ores which can be treated through the operational Tom's Gully plant. 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 to commence processing in late April 2006. Quest 29 and Tom's Gully are part of the AuQuest project, which covers approximately 1000 square kilometres of exploration licenses including EL 23172. 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.