Bridging report to cover exploration activities over MLC 499, 500, 581 and 583 01 January 2001 to 18 June 2007 Eldorado

Abstract

Mineral Leases 499, 500, 581 & 583 Eldorado, were 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 18th June 2007. Three diamond drill holes were completed (EL5DD-001, EL5DD-002, EL5DD-003). The follow-up hole EL5DD-003 was completed at a depth of 442.6m (271m RC precollar, 171.6m NQ2). Sheared talc-magnetite and magnetite-haematite-quartz lode was intersected between 402 and 408m. Minor disseminated pyrite and chalcopyrite was noted but preliminary assays (gold only) returned a best result of 1m at 1.2ppm Au from 402.7m. Magprobe interpretation indicates two small to moderate sized ironstones within 50m of the hole but separate to the smaller lode intersected. During September 2004 Giants Reef Exploration conducted a RAB drilling program. A total of 91 holes were completed for 2,289 metres. With three of the 91 holes (ELRB085, ELRB091 & ELRB093) being drilled in MLC 500.