Bridging report to cover exploration activities over MLC 18 01 January 2001 to 13 August 2007 MLC 18 West Gibbet

Abstract

Mineral Lease 18, West Gibbet, 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. During September 2004 the following exploration work was conducted over the West Gibbet tenement area; Fifty (50) RAB holes (WGRB001 - 050) were drilled for 998m. The gravity anomaly (DC = 0.60 gm/cc) was pattern drilled using a 20m x 20m grid designed to intersect shallow haematite ironstone positioned directly above the previously defined deep West Gibbet magnetic ironstone (560nT). Significant gold mineralisation within the West Gibbet shallow ironstone included 16m at 246 ppb Au from 15 metres (WGRB021), and 15m at 465 ppb Au from 9 metres (WGRB026). During November 2004 the following exploration work was conducted over the West Gibbet tenement area; Six RAB holes (WGRB051-056) for 364m were drilled by Bostech Drilling Pty Ltd, prior to rig breakdown. During January 2005 the following exploration work was conducted over the West Gibbet tenement area; One RC hole (WGRC023) for 150m was drilled in January, targeting the intermediate zone between the deep ironstone body and the shallow ironstone discovered in recent RAB drilling. The drill hole intersected one meter of ironstone, which was only slightly anomalous in base metals. Down-hole probe modelling shows the ironstone to be largely under the drillhole and therefore the hole has traversed over the top of the main body. Two possibilities were postulated: (1) the two ironstones are separate bodies or (2) the upper body plunges off section to the lower body past and underneath the RC drill hole. Overall, the gold zones intersected in the upper/oxide and deeper portions of the West Gibbet ironstone(s) are patchy, narrow and mostly low grade. It appears unlikely that this system can host a resource > 50,000 ozs. There is an undrilled portion of the ironstone to the east of this most recent hole, but potential is rated lowly due to the massive nature of the ironstone.