Fourth annual report for EL 10316 'Reward', for the period ending 21 July 2006

Abstract

Exploration Lease 10316 Reward covers an area of 752.46 km sq and is located within the McArthur Basin, approximately 50 km southwest of Borroloola, on the Bauhinia Downs 1:250,000 map sheet. The lease was acquired as a result of a takeover of North Mining Ltd Rio by Tinto Exploration Pty Ltd (RTE) during 2000. It was granted on 22nd July 2002 for a period of six years. During the second year of tenure, the Batten Trough Farm In and Joint Venture Agreement was entered into between RTE (North Mining Limited and other Rio Tinto companies) and Anglo American Exploration (Australia) Pty Ltd. This Agreement was signed on 29th September 2003 and was lodged with the Department for registration. Under this Agreement, Anglo American Exploration (Australia) Pty Ltd carried out work on the licenses covered by the agreement. During 2004 and 2005, Anglo American Exploration (Australia) conducted regional and prospect scale reconnaissance mapping, soil and rock sampling, a 3,995m TEM line and ten RC and diamond drill holes, totalling 3,031.6m in the Myrtle sub-basin. On 23rd March 2006 Anglo American Exploration (Australia) Pty Ltd withdrew from the Batten Trough Joint Venture. A waiver of reduction in area of EL 10316 was granted to RTE until 21st July 2007. RTE is currently attempting to secure a joint venture partner to continue McArthur River style Pb-Zn mineralisation on EL 10316.