Bridging report to cover exploration activities over MLC 524 01 January 2001 to 13 August 2007 MLC 524 Susan

Abstract

Mineral Lease 524, Susan, was acquired by Santexco Pty Ltd (Santexco) to search for Tennant Creek style iron oxide copper-gold deposits. This bridging report records the exploration work done on these group of tenure during the term 01 January 2001 to 13 August 2007. Exploration conducted during the report period included a RAB and RC drilling programme over MLC 524 in 2005. Ten RAB holes (SSRB01-10) were drilled for a total of 417 meters, and best results were from SSRB05 11m at 19.7 g/t Au from 22m, SSRB04 5m at 15.6 g/t Au from 24m, SSRB07 8m at 9.6 g/t Au from 26m and SSRB10 4m at 1.74 g/t from 34m. Seven angled RC holes were drilled for a total of 323 meters, these holes were drilled on a 10m x 10m grid pattern as extensions to and down dip from the existing RAB drilling pattern, with one, later, RC hole drilled (SSRC010, this hole twinned RAB hole SSRB10) for 46m. SSRC010 returned 3m composite result of 12m at 2.45 g/t Au from 24m, incl 3m at 8.3 g/t Au from 30m. Individual split of this intersection returned 3m at 11.4 g/t Au from 29m, incl 1m at 28.2 g/t Au from 30m. The results confirms that the east and west ore bodies link up. By including the mined voids as mineralized sections, the main mineralized body is approximately 40 meters in length, and occurs as a flat lying cylindrical shape, which may form part of the axial plunge of a drag fold. High grade RC samples from Susan were collected and stored for later metallurgical test work. Mag probing of SSRC010 was completed, updated X-sections and plans Susan were generated and a desktop DTM was made to aid in future exploration and mine planning. The geology of MLC 524 is dominated by undifferentiated volcanilithic/tuffaceous arenite/wacke ('metagreywacke') and siltstone; shale, including argillaceous banded ironstone ('hematite shale'); slate. Depth potential occurs beneath the broad alteration zone intersected in the western part of the prospect drilling and will be further targeted utilising the recently collected mag-probe data. Geophysical surveys reveal a significant magnetic anomaly within the tenement, combined with the results returned from the 2005 drilling, the Company has ranked the tenement for follow-up exploration.