2006 Annual report on Exploration Licence EL 10367 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. EL 10367 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 10367. 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. Further exploration of the quartz veined dissected area in the north-west will be carried out. This sector is only several kilometres south of the Rustlers Roost gold deposit and it is quite probable that significant gold mineralisation may be present. Follow-up work will entail comprehensive rock chipping of all outcropping quartz veins, gully and creek sediment sampling and costeaning of Au anomalous outcrops. Should significant mineralisation be encountered, a RAB drilling programme should be carried out. The magnetic spot high anomaly in the south-central sector of the licence should be investigated further with several vertical RAB holes drilled to blade refusal into saprock. BLEG soil sampling and lag sampling has been carried out over the remainder of the tenement area by previous companies. Several weakly anomalous samples in the north-east, central and western areas require follow-up during next years field season. Potential for finding further minable resources within the Mount Bundey Area is still considered very high.