2006 Annual report on Exploreation LIcence EL 10382 AuQuest Project period beginning 23 October 2005 and ending 22 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. EL 10382 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 10382. 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 of literature reviews and initial data entry to GIS of historical work. Although the previous rock chipping has returned relatively low levels of gold anomalism, there remain large areas of the tenement which were not visited or sampled. The existence of mineralisation at nearby Robertson is encouraging for the rest of the tenement, especially along the anticlinal axes plunging to the south; the prospect also occurs where the NNW trending magnetic basement dolerite intersects the anticlinal fold nose. The NW trending linear magnetic low basement structure that crosses through the tenement from Steve's Hill remains a priority target to be followed up. Surface sampling along the length of the structure is proposed, using a combination of techniques such as BLEG soils, lag and rockchips, and gully sediments. The extension of the Steve's Hill structural trend / fault zone into the northwest corner of the licence has been visited and several quartz veins sampled; however no anomalous samples were returned. Further work along the western side of Mayo's Ridge, where a major NE trending topographic lineament / fault is present, will also be carried out; also where the NW trending magnetic low structure intersects the surface fault. Gold mineralisation up to 0.35 ppm has already been discovered just north of the licence boundary in EL 22068 along Mayo's Ridge. Potential for finding further mineable resources within the Mount Bundey Area is considered very high.