flinders diamonds limited

FLINDERS DIAMONDS LIMITED

EL 8489

JOHNNIES REWARD and THEPINNACLES PROSPECTS

STRANGWAYS RANGE N.T.

ANNUAL REPORT

Author: : A.W. Mackie December 2000

Report No. : 00/6

Distribution:

Flinders Diamonds Limited 1 CopiesNT Department of Mines and Energy 1 Copy and 1 diskA. Mackie 1 Copy

CONTENTS

Page No.

SUMMARY 1

1. INTRODUCTION 1

2. LOCATIONS AND ACCESS 2

3. TENURE 2

4. PREVIOUS EXPLORATION & MINING ACTIVITY 2

Historical 1889 –1965 2The Pinnacles 4Geophysics 5Mapping and Sampling 5Drilling 6Soil and Drainage Sampling 6Work Under Current Tenure 7

5. REGIONAL GEOLOGY SETTING 9

6. YEAR 2000 PROGRAM 9

7. RESULTS 11

8. RECOMMENDATIONS 13

9. EXPENDITURE 15

10. REFERENCES 15

APPENDICES

APPENDIX 1 ALCOA ROCKCHIP SAMPLING ASSAY RESULTS

APPENDIX 2 MAGELLAN PERCUSSION HOLE AND ROCKCHIP ASSAYRESULTS

FIGURES

FIGURE TITLE SCALE

1. EL 8489 LOCATION PLAN (Page 3) 1:400,000

7. EL 8489 REGIONAL GEOLOGY (Page 10) As Shown

FIGURES (Continued)(Figures 9 to 12.3 at rear of Report)

FIGURE TITLE SCALE

9. JOHNNIES REWARD AND JR NORTH SOIL As ShownRESULTS – Au ppb

10. JOHNNIES REWARD – PINNACLES PROSPECTS As ShownGRID LAYOUTS AND LOCATION OF GEOPHYSICALANOMALIES

10.2 JOHNNIES REWARD PROSPECT AGSO GRID As ShownLAYOUT, GEOPHYSICAL ANOMALIES,PHOTO – INTERPRETED STRUCTURE

10.3 JOHNNIES REWARD PROSPECT AERIAL As ShownPHOTO – INTERPRETED STRUCTURE,GEOPHYSICAL ANOMALIES, SIGNIFCANTDRILL HOLES

11. JOHNNIES REWARD – PINNACLES PROSPECT 1:10,000GEOLOGY AND STRUCTURETHE PINNACLES COPPER MINES LOCATIONMAGELLAN PERCUSSION HOLES & DDH’SLOCATIONSREGIONAL ROCKCHIP SAMPLING RESULTS ANDLOCATIONS (>1000PPM Cu)SIGNIFICANT DDH’S LOCATION JOHNNIES REWARD

11.3 STRANGWAYS PROJECT As ShownOPHIR PROSPECT GEOLOGY

12. JOHNNIES REWARD PROPSECT As ShownDRILL HOLE LOCATION AND SIMPLIFIED GEOLOGY

12.1 JOHNNIES REWARD PROSPECT As ShownDRILL HOLE GEOCHEMISTRY RESULTS –COPPER (PPM)

12.2 JOHNNIES REWARD PROSPECT As ShownDRILLHOLE GEOCHEMISTRY RESULTS –GOLD (GRAMS/TONNE)

12.3 JOHNNIES REWARD AND JR NORTH As ShownGROUND MAGNETIC INTERPRETATION

1

SUMMARY

Reprocessing and digitising of AGSO ground geophysical data has accuratelylocated four anomalies that require following up. The IP and EM anomalies are newor rediscovered prospects away from areas of known mineralisation.

Reinterpretation of the Johnnies Reward ground magnetic data shows that thepostulated source of the main JR dipolar anomaly is not the cropping out gossan butrather the down plunge extension of the magnetite pyroxenite unit which crops out asfootwall to the gossan with a surface strike length of 180 metres. To date only onedrill hole has tested the depth extent of the anomaly below 60 metres vertical depth(E058005). It intersected 21 metres averaging 1.06 grams/tonne Au within themagnetite pyroxenite unit.

Assay results from 219 shallow percussion holes (<4m) drilled by Magellan in 1967were digitised. The holes were accurately relocated in relation to the AMG. Thedetailed Magellan geological plans were digitised and redrafted to assist in producinga 1:5,000 scale geological map of the Johnnies Reward – Pinnacles area.

The Pinnacles copper workings produced an estimated 248 tonnes of handpickedore averaging 12.4% copper to 1968. The Pinnacles “Line of Lode” which hosts theworkings is a north-trending zone of anastomosing quartz veins 2.5km long up to240 metres wide. It attains its maximum width in the vicinity of the Ophir workingswhich is deemed the most prospective for possible down dip extensions of thesurface secondary mineralisation for primary sulfide copper-gold ore.

Geological and structural interpretation of aerial photography and Landsat/SPOTScenes has delineated a Transitional Alteration Zone up to 150 metres wide trendingnorthward from the Johnnies Reward gossan for 1.5km. The zone comprisesdiscontinuous pods of geochemically anomalous gossanous skarn hosted bysheared quartz-garnet-biotite-chlorite gneisses, calcsilicate and amphibolite and mayrepresent a hiatus between concluding volcanic activity and the onset of carbonatesedimentation. The zone is criss-crossed by frequent east west trending thrust faults,a major structural feature of the area and an important control on knownmineralisation.

A ring of gossans occurring at the intersection of a north easterly extension of ThePinnacles “line of lode” and an east west orientated thrust zone requires followingup.

1. INTRODUCTION

Flinders Diamonds Limited is a new diamond exploration company incorporated inSouth Australia on January 11, 2000. In keeping with company objectives EL 8489was purchased from Tennant Creek Gold (NT) Pty Ltd in July 2000 to test thediamond potential of the area. The transfer of the tenement was approved byNorthern Territory Department of Mines and Energy on November 12 this year. Nodiamond exploration has been undertaken by Flinders Diamonds Limited to datehowever the previous tenement holder, Tennant Creek Gold (NT) Pty Ltd hasconducted a program further testing the copper-gold potential of Johnnies Rewardand Pinnacles Prospects, the main areas of economic interest within EL 8489. Thisreport outlines details of the exploration program conducted during the currentlicense year.

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2. LOCATION AND ACCESS

EL 8489 comprising 23 graticular blocks (73.6 square kilometres) is located 110kmnorth east of Alice Springs (Figure 1). Access is good via the Stuart Highway for45km then east for 55km along a formed beef road until Pinnacles Bore is reachedthen north for 10km along the Pinnacles – Mud Tank road. This road continues northfor another 20km connecting with the sealed Plenty Highway.

3. TENURE

EL 8489 was granted to Centralfield Minerals Pty Ltd on the 20th October, 1995 for 6years. It was transferred to Tennant Creek Gold (NT) Pty Ltd in March 1999 and wasthen on-sold to Flinders Diamonds Limited in July 2000. The transfer was ratified byNorthern Territory Department of Mines and Energy on November 12 this year. Adeferral of reduction was applied for and approved by Northern Territory Departmentof Mines and Energy in October. This being the second such deferral thus extendingthe term of the exploration licence by 2 years through to 2003.

4. PREVIOUS EXPLORATION AND MINING ACTIVITY

Historical 1889 - 1965

The Pinnacles copper gougings were discovered by a prospector in search of gold in1889. The copper mineralisation comprising malachite, chalcocite, bornite, traces ofazurite and chrysocolla, and rare cuprite and native copper occur as open spacefillings within quartz veins which also carry traces of gold, silver and bismuth. Blacktourmaline is also present as well as siderite gangue. It was not until 1942 however,that mining was commenced by P. Ciccone, who sunk two shafts 6 and 18 metresdeep to intersect a small quartz vein rich in chalcocite occurring at the contact of acalcsilicate unit and marble (refer Figure 11 for location). Estimated production until1948 was 50 tonnes averaging 20% copper.

After a 4 year hiatus K. Johannsen in 1952 opened up the Ophir South and Northgougings followed by Central No 2, which he worked until 1957. Production for theperiod is estimated at 20 tonnes averaging 20% copper (Figures 11, 11.3).

From 1964 to 1968 J Vitosky and others grubstaked by Reg Harris of Alice Springsrecommenced working the gougings opened up by K. Johannsen namely CentralNo. 2, Ophir North and South.

Central No. 2 is the largest working on the field comprising a horizontal drive or opencut 40 metres long by 6 metres wide by 12 metres deep trending north into the sideof a marble ridge following a zone of high density quartz veining which occurs at thesheared contact of calcsilicate and marble. One thousand five hundred tonnes ofquartz was mined and hand-picked resulting in an ore parcel of 33.5 tonnesaveraging 15.75% Cu and 2.9 ounces silver (Port Kembla Smelter records).

Other recorded production is as follows:

Ophir North 50.95 tonnes @ 9.26% copperOphir South 17.93 tonnes @ 5.27% copperUrals 7.25 tonnes @ 8.24% copperPolly Boy 22 tonnes @ 17.8% copper

100

kilometres

4200

00 m

E

4400

00 m

E

7400000 mN

7420000 mN

7440000 mN

3800

00 m

E

4000

00 m

E

7380000 mN

7460000 mN

Flinders Diamonds Limited

STRANGWAYS PROJECT

EL8489 "Johnnies Reward"Tenement Location Plan

Drawing:FD00-050.wor

Scale:1:400,000

Date:Sep 2000

Author:K.W

Drawn:Montana D&D P/LAlice

Springs

Area of Plan

N o r t h e r n

T e r r i t o r y

#

Projection: MGA 53 (GDA94)

EL 8489"JohnniesReward"

Plenty Highway

Gillen

Cre

ek

Stuart

Highw

ay

ALICESPRINGS

Figure 1.

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Estimated production to the end of 1968 when mining concluded is 248 tonnesaveraging 12.4% copper. Of this total 21.6 tonnes averaged 2.9 ounces per tonne,silver. No further recorded mining activity has occurred since 1968.

The first geologist to visit the area was Sullivan (1942) who described themineralisation in Ciccone’s Shaft, followed by Jensen (1943) who thought thePinnacles copper ore was primary. In 1948 Enterprise Exploration Coy visited thecopper shows (Thomson, 1948). In 1952 Bell and Firman (Mines Branch Geologists)mapped Ophir and Ciccone's workings and came up with an inferred ore reserve to avertical depth of 6 metres of 100 tonnes of 20% copper and 9,000 tonnes of 5%copper. Two drill holes recommended by Bell (1952) were drilled but failed tointersect the main ore zone.

Youles (1964) carried out a geological reconnaissance of the general area afterrecommending a low level aeromagnetic survey upon inspecting Central No 2 Mineand Johnnies Reward Prospect. He also recommended drilling the largest gossan orironstone body located 500 metres north west of Central No. 2 as well as the workingitself to determine the depth of secondary enrichment (refer Figure 11). The drillingwas not carried out however but AGSO did fly an aeromagnetic survey over ThePinnacles – Johnnies Reward area in 1965. The total area flown was 147 sq.kilometres (980 line km) at a line spacing of 152 metres and an altitude of 80 metres(Tipper, 1996). The Pinnacles area was magnetically nondescript however a strongdipolar anomaly was delineated over Johnnies Reward.

In 1965 Geopeko established a grid over the Johnnies Reward gossan (Figure 10)covering 7.42Ha (2.74 line km) and carried out ground magnetic and self-potentialgeophysical surveys. They tested the resultant anomaly with one DDH to a depth of141 metres intersecting 17 metres averaging 0.45g/t Au and 0.26% Cu from 62.8metres down hole depth (Williams, 1965).

The Pinnacles

In the summer of 1967/68 K. McMahon and Partners Pty Ltd for Magellan PetroleumCorporation established a grid over the main Pinnacles workings (975 metres by2,926 metres, 285.28 Ha, 24.37 line kilometres; E-W traverses 122m apart) toundertake a detailed mapping program (Figure 10). The general area Pinnacles toJohnnies Reward was mapped at 1:12,000 while individual workings ie. Polly Boy –Ophir – Central No. 2 – Ciccone's – Urals were mapped at 1:2,400 using the grid orat 1:1,200 using a plane table. Johnnies Reward was also mapped at 1:1,200 usingthe Geopeko grid. The results of this very detailed mapping are incorporated inFigures 11 and 11.3. A ground magnetic survey was conducted over the alluvial flatnorth of Ciccone’s shafts (5.12 line km, readings every 27.4m, where significantstepping down to 9.14m). No anomalies resulted, magnetically the area is very flat.

A ‘cobra’ percussion drilling program was undertaken to test bedrock geochemistry.The dust was sampled over 0.60m to 0.91m intervals and analysed for Cu, Pb, Znand sporadically for Au, Ag, Bi by atomic absorption. Maximum hole depth was 3.65metres. A total of 219 holes were drilled (refer Figure 11, 11.1, 11.3 and 12 forlocation) for 830.28 metres of which 671 samples were sent for assay. 63 rock chipsamples were assayed for Cu, Pb, Zn, Au, Ag, Bi and Ni.

Four DDH’s were completed from the surface totalling 465.42 metres. Only 108samples were sent for assay. Of these 36 were from Pinnacles No. 1. (102.71m) witha best result from 3m to 9m of 1.4% Cu. Also from 43 to 91.4 metres the hole

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averaged 476ppm Cu. Pinnacles No. 1 was drilled to test the Ophir North quartzveining at depth (refer Figure 11, 11.1 and 12 for location).

Thirty-three samples from Pinnacles No. 2 (101.5m) were assayed for no anomalousresult. It was designed to test for down dip extensions of the Ophir South nearsurface mineralisation. Thirty-one samples were assayed from Pinnacles No. 3(166.42m) with a best result of 5,842ppm Cu from 111.25m to 117.34m. The holewas designed to test the Johnnies Reward gossan however they failed to recognisethe plunging nature of the ironstone as the hole passed beneath it.

Only 6 samples were assayed from Pinnacles No. 4 (94.79m) designed to test fordown dip extensions of the Ciccone’s shaft mineralisation. No anomalous resultswere recorded.

Geophysics

During the winter of 1967 just prior to the commencement of the Magellan programAGSO conducted a number of ground geophysical surveys however the results ofthis program were not published until 1971 (Haigh, 1971). AGSO constructed 3 grids(Figure 10). The Geopeko Johnnies Reward grid was extended to cover 117.56 Ha(16.15 line km). The other grids were Pinnacles (288 Ha, 11.22 line km) over thearea of alluvial flats and the New Folly or Polly Boy grid (12.26 Ha, 3.22 line km). 8traverses away from the gridded areas (12.42 line km) were also surveyed.

Ground magnetic, IP and SP surveys were conducted over the entire JohnniesRewards Grid as well as 9 lines of EM, (3.29 line km). Coincident anomalies of all 4methods were delineated over the Johnnies Reward gossan. On traverse 4800N acoincident IP and EM anomaly was delineated which remains untested to date(Figures 10, 10.2 and 10.3).

Ground magnetic IP and SP surveys were conducted over the entire Pinnacles Grid.A broad IP anomaly was delineated which also remains untested (Figure 10).

EM and SP surveys were conducted over the New Folly Grid delineating an EManomaly over the existing workings. The EM anomaly was followed up with IPproducing a weak anomaly. This also remains untested (Figure 10).

Mapping and Sampling

In 1969 AGSO mapped the area of the 1965 aeromagnetic survey at a scale of1:22,500 (Shaw 1970), to assist interpretation of both AGSO geophysical surveys.Shaw’s report describes the copper workings and Johnnies Reward Prospectincorporating geochemical data from the Magellan program as well as the results ofthe ground geophysical surveys after Haigh, 1971.

From 1969-73 Stockdale Prospecting Limited conducted an extensive drainagesampling program over a 270 sq. km area which included EL 8489. Twenty-ninedrainage samples were collected from creeks draining the area of the EL for heavymineral analysis. A minus 80 mesh fraction was sieved off for geochemical analysishowever these were not assayed until 1988 (Marx 1974).

AGSO commenced mapping the Laughlen 1:100,000 sheet in 1968 through to 1974(includes the area of EL 8489).

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A preliminary 1:100,000 scale geology map was published in 1979 followed by acoloured edition in 1984 titled “The Geology of the Strangways Range Region”.

After Stockdale departed in 1973 exploration ceased in The Pinnacles – JohnniesReward area until 1982 when ALCOA applied for EL 3026. Alcoa flew 480km² of1:20,000 coloured aerial photography centred on Johnnies Reward. They undertookseveral mapping episodes at various scales:

1:20,000 250km²1:5,000 18km²1:500 1.6km²

Eight rockchip geochemical traverses (3.5km), 251 rockchip samples analysed forCu, Pb, Zn, Au and Ag, 11 soil samples, and 34 petrology samples.

Drilling

Alcoa drilled 6 DDH’s for a total of 819.4m and sent 582 one metre samples to beassayed for Cu, Pb, Zn, Au and Ag. Five of the DDH’s were collared at JohnniesReward to test the plunging surface ironstone. Best results were obtained in DDHE058-002 (50 metres @ 0.91ppm Au, 21 metres @ 1.0% combined basemetals [Cu+ Pb + Zn]) and E058-005 (32 metres @ 0.74ppm Au, 5.6ppm Ag.

In 1988 Tectonic Resources NL fire assayed (previously AAS only) the aboveintersections to increase the gold value average to 1.83 and 1.06ppm respectively.The 6th DDH was drilled at the Mark Hill Prospect 6.5km south of Johnnies Rewardfor negative assay results. ALCOA concluded from drilling there was a possibleresource of 500,000 tonnes averaging between 0.1 and 1.0ppm Au (CHUCK 1983,1984, 1985).

Soil and Drainage Sampling

In 1988 Tectonic Resources NL and DW ROBB established a new grid orientatedtrue north and south centred on the Johnnies Reward gossan. Total area griddedwas 79.75 Ha (18.57 line km), E-W traverses 40 metres apart with 20 metre stations,(refer Figure 10).

Six hundred and sixty-two soil samples were collected and assayed for gold only. 15RC drill holes (454 metres) were collared to test the resultant soil anomalies rangingfrom 10 to 100ppb gold (Figure 9, JR and JR North gold in soil results). The resultsof the drilling program were not reported to the N.T. Department of Mines andEnergy.

In 1992 Stockdale returned to the area to follow up anomalous gold results obtainedfrom –80 mesh splits from drainage samples collected during the 1969-73 regionalsampling program. The samples were XRF analysed for 36 elements. Out of the 29samples collected from drainages within EL 8489, 5 gave values ranging from 9 to17ppb Au upon resampling however these highly anomalous values after BLEG andAAS analysis gave values ranging from zero to 0.8ppb Au. Orientation BLEGsampling and analysis of the main drainage emanating from the Johnnies Rewardgossan showed that within a 100 metres values ranging from 0.8-1.0ppb Au wereobtainable while 500 metres down stream values reduced to 0.6ppb Au.

Twenty-seven sample sites were visited during this program with a minus 80 meshand BLEG sample taken from each one. A Co, Cu, Zn drainage anomaly was

7

delineated in the north west corner of EL 8489 (7443000N, 416700E) which remainsto be followed up (Stockdale, 1993).

Work Under Current Tenure

EL 8489 was granted to Centralfield Minerals Pty Ltd (the original titleholder) onOctober 20th, 1995. During 1996 the following work program was undertaken:

1. The Tectonic Resources NL grid was re-established.

2. CRAE Pty Ltd conducted a ground magnetic survey over the above grid on E-W traverses 40 metres apart using 10 metre stations (18.57 line km, 79.75 Ha),to further delineate the intense magnetic anomaly over the Johnnies Rewardironstone as indicated by the 1965 AGSO aeromagnetic survey (Tipper, 1966)and the subsequent follow up ground magnetic survey in 1967 (Haigh, 1971).

AGSO’s findings were confirmed and refined and a second intense but smalleranomaly was located over a gossanous skarn at JR North Prospect whichremains untested to date.

3. The grid was mapped at 1:1,000 scale partly to assist interpretation of themagnetic data (79.75 Ha).

4. Alcoa DDH’s E058002 and 005 were relogged.

The following program was implemented in 1997:

1. The 15 RC drill holes (454 metres) drilled by Tectonic Resources NL in 1988were relogged and resampled. Four hundred and nine samples were assayedfor Au, Cu, Bi and As with a best result of 15 metres averaging 1.04 gms/tonneAu and 0.81% Cu commencing from 5 metres down hole depth in hole JR5.

2. DDH Geopeko 1 was relogged confirming that only the magnetite pyroxeniteunit was sampled and assayed (44.8 to 79.86m). The best gold intersections inthe Alcoa DDH’s were in the footwall gneisses which occur below the magnetitepyroxenite unit therefore if possible the remaining 61 metres of the hole shouldbe assayed.

3. Johnnies Reward and JR North Prospects were mapped at 1:500 scale (15 Ha).

4. Pasminco conducted a minus 80 mesh drainage sampling orientation survey of8 samples within the EL. One sample (422091.76E, 7443076.41N) isanomalous for Sn (16ppm).

5. Two rock samples were thin sectioned and later described by Pontifex namelyJR2 and JR15.

The 1998 program comprised the following:

1. Forty-two rock chip samples were taken over the general area of JohnniesReward and The Pinnacles copper shows. They were assayed for Cu, Pb, Zn,Au, Ag, Bi, Sb, Mo, Cr. Twelve BLEG – 2mm drainage samples were taken fromcreeks draining the same area.

8

2. CRAE digital magnetic data was reprocessed delineating an arcuatedemagnetised zone on the western boundary of the grid.

3. The Tectonic Resources NL gold in soil data was digitised and reprocessed.

4. Landsat SPOT located digital MSS data was purchased for the entire Laughlenmap sheet area to assist in regional and local mapping and structuralinterpretation.

In early 1999 EL 8489 was transferred to Tennant Creek Gold (NT) Pty Ltd. Thefollowing program was undertaken:

1. The northern third of the main Johnnies Reward grid was extended 300 metresto the west (JR West grid 5.7 line km, 21.6 Ha. Figure 10).

2. Allender Exploration completed a ground magnetic survey over the JR Westgrid on E-W traverses 40 metres apart with continuous read-out ie. no stations(5.7 line km). The alluvial flat between Johnnies Reward and The Pinnaclesworkings was also magnetically surveyed on traverses 100 metres apart (14.98line km, 141.5 Ha). This survey partially overlaps the area of AGSO’s PinnaclesGrid (refer Figure 10).

The JR West survey delineated the westerly extent of the demagnetised zonehowever its prospectivity, if any has yet to be established. The alluvial flat(Airstrip grid) is magnetically flat.

3. The postulated demagnetised zone (JR West grid) was mapped at 1:500 scale.

4. Fifty-four rock chip samples were taken mainly on the footwall or westerncontact of the Johnnies Reward mineralised sequence and the demagnetisedzone. The footwall alteration halo of the JR North gossanous skarn was alsosampled. All rock chip samples were assayed for Au, Ag, Cu, Pb, Zn, Bi.

5. To assist regional structural interpretation and the possibility of more JohnniesReward analogues AGSO’s aeromagnetic data was digitised by AllenderExploration and reprocessed. No other regional dipolar magnetic anomalieswere delineated.

6. An OMNI STAR GPS Survey was undertaken to resolve ground location controldifficulties. The OMNI STAR system is accurate to 0.1 metres. Two hundredand seventy four points were logged over the JR-Pinnacles area. Only by usingthe OMNI STAR was it possible to accurately relocate the AGSO grids (Figure10) Even though they are 33 years old it was possible to relocate them becausethey had been very accurately surveyed into position originally ie. they werewhere they were supposed to be!

7. Nine rocks were sent to IR Pontifex for petrological description. The rocksamples were a representative section from footwall to hanging wall (west toeast) across the Johnnies Reward gossan sequence. From these he was ableto identify a north-south trending zone of greenschist facies retrogression about200 metres wide centred on the cropping out ironstone or gossan.

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5. REGIONAL GEOLOGICAL SETTING

The Strangways Range area which includes EL 8489 is located within the EarlyProterozoic South East Arunta Block (Figure 7). EL 8489 falls within the CentralTectonic Zone of the Arunta Block comprising upper amphibolite grade metamorphicfacies rocks which have been assigned by AGSO (Shaw et al, 1979) to an informalunit called the Cadney metamorphics. This informal unit forms the upper part(youngest member) of the Strangways Metamorphic Complex, which in turn belongsto the oldest and most deformed group of rocks cropping out in the Arunta Block.

The Cadney metamorphics comprise marble, calcsilicates, felsic and mafic gneisses,quartzites and granitic gneisses. These lithologies are interpreted to represent aLower Proterozoic marine sequence of impure limestone, greywacke, variableterrigenous sediments and intercalated acid and basic volcanics.

Sedimentological evidence is scant but a deeper water basinal rather than a shelfdepositional environment is suggested (Chuck, 1983).

This volcano-sedimentary lithological package was first metamorphosed to upperamphibolite grade around 1800 ma. The area is structurally complex havingundergone at least two subsequent metamorphic events, throughout its long andconvoluted history culminating in the Devonian (350ma) Alice Springs Orogeny(ASO). The ASO is characterised by high density east-west orientated thrust faults(north over south) associated with zones of wide spread retrogressive green schistfacies metamorphism, as occurs at Johnnies Reward where thrust faults havechannelled gold-bearing metamorphically derived fluids to suitably preparedstructural traps where P and T conditions are such aided by the buffering effect ofalkaline carbonate rocks on mildly acidic ore fluids to precipitate economicconcentrations of gold out of solution. The amenability of gold to pass into solutionunder green schist facies thermodynamic conditions is well documented.

EL 8489 is part of AGSO’s Yambah Block a major tectonic unit bounded to the eastby the north west trending Woolanga Fault and to the west by the Pinnacles –Edwards Creek Fault which also strikes north west. It is bounded to the south by theWinnecke Thrust Zone and to the north by the Desert Bore Thrust Zone bothcontinental scale linear zones of crustal instability (refer Figure 7 for RegionalGeology).

6. 2000 PROGRAM

1. Magellan rock chip (63) and drill hole (219 percussion, 4 DDH’s) assay resultswere digitised and reprocessed to establish as accurately as possible groundlocations for each individual drill hole which were subsequently field checked.Drill hole location and results are plotted on Figures 11, 11.3, 12, 12.1 and 12.2.Refer Appendix 1 for a detailed listing of assay results.

2. Alcoa rock chip sampling results centred on Johnnies Reward gossan (30) weredigitised (Appendix 1 for listing).

3. All Magellan geological mapping was digitised and redrafted followed up by GPSground checking to ensure accuracy. The geology of The Pinnacles area(eastern half of Figure 11) is based on the original Magellan mapping which alsoincludes Figure 11.3 (OPHIR workings).

MT

JOHNSTONE

WO

OLA

NG

A

EDW

ARDS

YAMBAH

HARRY

CREEK

CREEK

S Z

FAU

LT

FAULT

FAU

LT

FAULT

Mue

ller

Gil

len

Creek

Creek

Plenty Highway

“Bushy Park”Homestead

5km

MCS227

MR303

EL 8489"JohnniesReward"73 km sq

ELA 22623"Phlogopite"

147 km sq

ELA 22446"Alcoota”228 km sq

ELA 10364"Mud Tank”

341 km sq

ELA 22443"Strangways”

1156 km sq

Legend

Quarternary andTertiary Cover

Carbonatite Intrusive

Proterozoic Amphibolite

Major Fault

Minor Fault

Thrust Fault

Proterozoic Granulite

Q

Pg

Pa

-23º20'

-23º00'

-22º50’

-23º10'

134º00' 134º10' 134º20'

Mt BleechmoreCarbonatite

Mud TankCarbonatite Mine

Johannsen’sPhlogopite

Mine

Q

Pg

Pa

Pg

Pg

Pg

Pg

Q

Area ofPlan

W.A

N.T

S.A

Qld.

N.S.W

Vic.

Tas.

G2

G1

G8

G8

G1G5

G5

G2

G3

G7

G7

G3


STRANGWAYS PROJECTDate:

Dec2000

Author:A.M

Drawn:Montana D&D P/L

Drawing:FD00-064.cdr

Scale:as shown

EL8489Regional Geologyand Location Plan

Figure 7.

11

4. The ring of gossans area immediately west of Ciccone's Shafts was GPSmapped to accurately tie in the area to the Magellan plans and also the AMG(Figures 10 and 11).

5. AGSO ground geophysical survey data was re-evaluated. The relevant planswere digitised and redrafted using 1999 OMNI Star survey co-ordinates toaccurately locate and tie into the AMG the various grids ie. Johnnies Reward,Pinnacles, New Folly and the anomalies delineated (Figures 10, 10.2, 10.3).

6. The 1:20,000 scale colour aerial photography was obtained from ALCOA whoflew the area (480 km²) in 1982. The relevant frames were digitised (2) coveringJohnnies Reward and The Pinnacles copper shows. A detailed photo-structuralinterpretation was completed (Figures 10.2, 10.3, 11).

7. The Landsat/SPOT satellite MSS data sets were combined to produce highresolution images at scales of 1:5K, 1:10K, 1:25K and 1:50K of the JohnniesReward – Pinnacles area. Geological and structural interpretations of theseimages from the basis of Figure 11.

8. The Johnnies Reward ground magnetic data sets (CRAE and AllenderExploration) were re-interpreted using the following images:

1. CRAE and AE combined TMI R to P.2. CRAE TMI North Illumination.3. CRAE TMI East Illumination.Refer to Figure 12.3 for Interpretation.

9. Tectonic Resources NL gold in soil results taken over the Johnnies Reward gridwere digitised and reprocessed (Figure 9).

7. RESULTS

Re-evaluation of AGSO ground geophysical survey data has rediscovered 4anomalies (apart from Johnnies Reward) that require following up. Namely Line 5600(IP), Line 4800 (IP and EM) (Figure 10.2), Southern Cross Bore (IP) and New Folly(EM).

The size and intensity of the main Johnnies Reward magnetic anomaly is notcommensurate with the size of the cropping out gossan (Figure 12.3). DDH,E058005 intersected the magnetite pyroxenite unit from 105m to 160m vertical depth(Figure 10.3) and its presence at those depths may well account for the size andintensity of the anomaly. The magnetite pyroxenite is highly magnetic (up to 40%magnetite) and crops out for 180 metres (Figure 12). At surface it comprisesmagnetite and tremolite while in drill core; diopside and magnetite, in approximatelyequal proportions. It carries up to 1% combined basemetals (Cu + Pb + Zn) and inDDH005, 21 metres averaging 1.06gms/tonne, Au hence it is a significant contributorto the overall mineralised package. The best gold intersections however occur withinbrecciated footwall quartz-garnet biotite/chlorite–magnetite–pyrite-schists, gneissesand where more silica is present quartzites. The copper-gold mineralisation occursas:

12

1. Stockwork of sulphidic veins, veinlets and stringers of chalcopyrite and pyrite2. Disseminated sulphides.

The footwall sequence is also highly magnetic due to the ubiquitous presence ofmagnetite in both disseminated and vein forms however its level of concentrationdrops off sharply as indicated by the magnetics even though there is no perceptiblechange in lithology (other than a sharp decrease in magnetite). In cross section themain Johnnies Reward Anomaly is circular to elliptical with a longitudinal axis manytimes greater than its width, thus forming a plunging pipe-like body parallel to theregional lineation of about 50 degrees NNE. This lineation is ubiquitous throughoutthe area and reflects the high density thrust faulting deemed to have occurred duringthe ASO.

The Pinnacles copper mineralisation is deposited as open-space fillings within quartzveins. They are seldom more than one metre wide occupying small north-trendingshears dipping steeply to the east, an orientation that roughly parallels the dominantfoliation.

Their preferred location is within or on the contact of sheared calcsilicate (schist)units and marble (Figure 11 and 11.3). The copper content of veins varies from atrace in quartz stringers to 30% in rich ore zones within larger quartz veins.

The vein quartz also carry traces of gold, silver, bismuth and disseminatedchalcopyrite however the main copper minerals are malachite, chalcocite, bornitewith traces of azurite, chrysocolla, rare cuprite and native copper in association withtourmaline and iron carbonate gangue. To date no primary copper sulfidemineralisation has been mined or its existence reported. The highest grade ore wasmined from deposits of chalcocite, malachite and bornite all secondary copperminerals derived from the oxidation of primary chalcopyrite concentrated in the nearsurface environment.

The vein deposits occupy dilation zones within a major north-trending shear ordeformed zone up to 240 metres wide and 2.5km long extending from Polly Boyworkings through Central No. 9, Ophir, Central No. 2, Ciccone’s and Urals. Thelargest gossan within the ring of gossans area west of Ciccone’s Shafts is truncatedto the east by a NNW-trending anastomosing vein quartz system (Figure 11) whichgenerally follows a well defined Landsat linear interpreted as a fault. This veinsystem can be traced continuously from Central No. 2 workings however there areno other workings along it. The mineralised trend from Central No. 2 extendsnorthward following a sheared calcsilicate unit that has been faulted off in severalplaces by a number of parallel NE-trending structures. It terminates at the Uralsworkings where it is intersected by a prominent Landsat linear trending east northeast interpreted as a fault (possibly a thrust fault).

At Johnnies Reward the interpreted Transitional Alteration Zone (TAZ) is prospectivefor copper-gold mineralisation comprising discontinuous pods of geochemicallyanomalous gossanous skarn over a strike length of 1.5km up to 150 metres wide(Figure 11). The sheared western contact of the zone marks the end of carbonatesedimentation in the Johnnies Reward area. It is clearly transitional betweenunaltered quartz-garnet-biotite-sillimanite gneiss cropping out west of the zone,forming prominent strike ridges and the marble-calcsilicate carbonate sequence tothe east. Within the zone the poddy gossanous skarns are hosted by shearedquartz-garnet-biotite-chlorite-epidote schists and gneisses that have clearlyundergone green schist facies retrogression. Other lithologies within the zoneinclude outcrops of podlike to elongate amphibolite (60% plagioclase, 15% bronzite,

13

15% diopside, 10% magnetite) that regularly crop out along the north-trending zone,the Johnnies Reward magnetite pyroxenite (metamorphosed dolomitic carbonate),coarse grain pegmatite or granite and minor calcsilicate.

Frequent thrust faults orientated east-west, east-north-east and east-south-east area characteristic of the area and are an important control on mineralisation (north oversouth sense of movement).

The quartz-garnet-biotite gneiss, amphibolite, calcsilicate unit cropping outimmediately east of TAZ is transitional also in so far as a change in sedimentation ismarked by the occurrence of highly siliceous well sorted quartzite cropping out onthe westerly contact of this unit (sq on Figure 11) just prior to the onset of the maincarbonate sedimentation event.

There are anomalous rock chip and soil geochemistry results within this unit, whichis also deemed prospective, but discrete from TAZ in view of the distinct structuralbreak clearly observable between the two. However the combined area underlain bythese units may well represent a hiatus zone marking an end to volcanic activitybefore the onset of carbonate sedimentation hence the copper-gold mineralisation atJohnnies Reward may originally have been exhalative volcanogenic massive ordisseminated sulphides plus gold which were remobilised and reprecipitated severaltimes throughout the regions structurally complex evolutionary history to bedeposited where the present mineralisation is located now.

8. RECOMMENDATIONS

1. The main Johnnies Reward magnetic anomaly has only been tested by threeDDH’s namely Geopeko DDH1, ALCOA E058002 and E058 005. Although thebest intersection was drilled in ALCOA 002 it was within 60 metres (verticaldepth) of the surface hence the down plunge or depth extent of the anomaly wasnot tested. ALCOA005 collared 63 metres north east of 002 is the mostsignificant hole from a geophysical aspect because it disproves AGSO’s theorythat the anomaly is shallow (approximately 70 metres) having intersected themagnetic pyroxnite from 105 to 160 metres vertical depth and the underlyingmagnetic footwall zone to a vertical depth of 195 metres.

Infill drilling is required between these two holes orientated normal to plunge(210º) to follow up the previous encouraging results achieved in both holes.

2. The AGSO IP anomaly (Figure 10.2) occurring in the footwall of the JohnniesReward gossan sequence requires RAB drilling orientated east west. TheTectonic RC holes were all drilled towards the north west terminating in themagnetite pyroxenite unit. The IP anomaly appears to be located further downsequence at the contact of the magnetite pyroxenite and the underlying footwallschists. It may well correspond to the postulated Allender demagnetised zone.To date no previous drilling has tested this section of the footwall sequence.

3. The Johnnies Reward North magnetic anomaly underlying a cropping outgeochemically anomalous gossanous skarn requires RAB drilling. The JR Northgossan is located on an ESE – trending thrust fault which disappears undercoverwithin a few metres of the gossan however its easterly extension is worthfollowing up with a bedrock geochemistry sampling drill program.

14

4. The eastern half of the Johnnies Reward grid occupies a valley whichcorresponds inpart to the postulated Transitional Alteration Zone (TAZ). There isoutcrop present but the majority of the area is under a thin layer of alluvium andsheet wash. Those areas undercover require bedrock geochemistry drillsampling (north east quadrant of the Johnnies Reward grid).

5. The Line 4800 AGSO IP and EM anomaly needs to be mapped in detail androck chip sampled where appropriate. The flat lying undercover area slightly eastof the anomaly needs to be soil sampled and/or bedrock geochemistry drilled.The anomaly is located 350 metres north of the JR Grid hence it could easily beextended to include this area.

6. Line 5600 AGSO IP anomaly needs to be mapped and rock chip sampled whereappropriate.

7. The Southern Cross Bore AGSO IP anomaly is overlain by a thin covering ofalluvium and requires bedrock geochemistry drill sampling. The JohnniesReward grd could easily be extended to the east and south to include this area(Figure 10).

8. The arcuate “ring of gossans” located east of Ciccone’s Shafts have beensampled several times by various explorers. No anomalous results have beenreported to date for base metals or gold, however their favourable structuralsetting occurring at the intersection of two major structural trends (Figure 11)One orientated east-west associated with thrust faulting and a north-NNE-NNWtrend possibly a north easterly extension of The Pinnacles “line of lode” trendrequire RAB drilling particularly the largest of the 5 gossans where there areseveral zones of malachite stained quartz veins within brecciated marblecropping out adjacent to the southern side of the gossan. The gossans areessentially hematite and manganese (after carbonate?) that have undergonelaterisation during the Tertiary which may have resulted in surface leaching.

9. The Pinnacles “line of lode” attains its widest extent in the vicinity of the Ophirworkings (Figure 11.3). This zone of extensive brecciation and stringers hostingsporadic high grade copper mineralisation needs to be RAB drilled to test fordown dip extensions of the breccia zone hosted surface mineralisation. Asecondary target is the sheared or schistose calcsilicate units which areparticularly prevalent in this area.

10. Northerly strike extensions of the Polly Boy shear hosted copper mineralisationas manifested by the EM anomalies delineated by AGSO need to be followed upby RAB drilling.

15

9. EXPENDITURE

Expenditure during the period reported is as follows:

$Digitising AGSO, Magellan, ALCOA data, computer 2,900.00enhancement and Image processing

Drafting and digitising 6,800.00

Geological Time – Field 5,500.00

Geological Time – Office 14,400.00

Rehabilitation of Tectonic Resources NL RC Drill Holes 1,900.00

Administrative costs @ 12.5% 3,887.50

Total $34,987.50

10. REFERENCES

BELL, A.D.M., & FIRMAN, J., 1952 – Pinnacles Copper Mine, Strangways Range.Resident Geologist’s Office, N.T.A., Alice Springs, File F6-2 (unpubl.).

CHUCK, R.G., 1985 – ALCOA Final Report EL 3026. CR/253 (unpubl.).

FOX, K., 1988 – Tectonic Resources NL – Johnnies Reward Soil Survey. CR88/301(unpubl.)

GRAINGER, D., 1967 – New Folly Mine, Pinnacles area, Strangways Range.Resident Geologist’s Office, N.T.A., Alice Springs, Mineral Occurrence Data Files,Alice Springs Sheet area (unpubl.).

HAIGH, J.E., 1971 – Strangways Range geophysical survey, Northern Territory,1967. Bur. Miner. Resour. Aust. Rec. 1971/18 (unpubl.).

HASLETT, P., 1968a – A description of sixteen rock specimens. Aust. Miner. Devel.Labs Rep. MP287/69 (unpubl.); Tech. Files, Bur. Miner. Resour. Aust.

HASLETT, P., 1968b – Seven rock specimens from Strangways Range. Ibid.,MP659/69 (unpubl.); Tech. Files, Bur. Miner. Resour. Aust.

JENSEN, H.I., 1943 – Report on Ciccone’s Mines, Mount Johnstone. ResidentGeologist’s Office, N.T.A., Alice Springs, File F6-29 (unpubl.).

LUDBROOK, N.H., 1949 – Notes on copper mining in the Northern Territory. Bur.Miner. Resour. Aust. Rec. 1949/5 (unpubl.).

MACKIE, A.W., 1996 – Centralfield Minerals Pty Ltd. EL 8489 Annual Report.(unpubl.).

16

MACKIE, A.W., 1997 – Centralfield Minerals Pty Ltd. EL8489 Annual Report.(unpubl.).

MACKIE, A.W., 1998 – Centralfield Minerals Pty Ltd. EL8489 Annual Report.(unpubl.).

MACKIE, A.W., 1999 – Tennant Creek Gold (NT) Pty Ltd. EL8489 Annual Report.(unpubl.).

MACKIE, A.W., 1999 – Centralfield Minerals Pty Ltd. MCS227 First Tenure PeriodReport 1994 to 1998. (unpubl.).

MARX, W.T., 1974 – Stockdale Prospecting Limited. EL’s 811 and 812 AnnualReport. CR74/97 (unpubl.).

MARX, W.T., 1974 – Stockdale Prospecting Limited EL’s 811 and 812 Final Report.CR74/98 (unpubl.).

McMAHON and PARTNERS, 1968 – Pinnacles Prospect, Central Australia. Rep. ForMagellan Petroleum Corp. by Kenneth McMahon and Partners Pty Ltd CR68/34(unpubl.).

SULLIVAN, C.J., 1942 – Copper Prospects, Pinnacles Well area. Letter from MinesDep., Alice Springs, to Director, Mineral Resources Survey, Canberra, 31/8/1942,File B1-4.

TIPPER, D.B., 1966 – Strangways Range aeromagnetic survey, Northern Territory.Bur. Miner. Resour. Aust. Rec. 1966/60 (unpubl.) (Restricted).

WHALAN, G.A., 1993 – Stockdale Prospecting Limited. EL’s 7571 and 7669 AnnualReport. CR93/194 (unpubl.).

WILLIAMS, G., 1967 – Johnnie’s Reward Drilling Log of D.D.H.1. Geopekko Limited,Company Rep. (unpubl.).

WILLIAMS, G., 1967 – Petrology of some rocks from the Northern Territory. Aust.Miner. Devel. Labs Rep. MP95/68 (unpubl.).

YOULES, I.P., 1964a – Proposed aeromagnetic survey areas – Strangways Range,Northern Territory. Resident Geologist’s Office, N.T.A., Alice Springs, File B1-16(unpubl.).

YOULES, I.P., 1964b – Assay Results, Johnnie’s Reward Prospect. Ibid., File 6-1.

YOULES, I.P., 1966 – Proposed diamond drilling, Pinnacles Copper Mine, NorthernTerritory. Ibid., File F6-51.

APPENDIX 1

ALCOA ROCKCHIP SAMPLING ASSAY RESULTS

JR Alcoa RChip_grab samples.xls

Sample_No GDA94_E GDA94_N Cu_ppm Pb_ppm Zn_ppm Au_ppm Ag_ppm Rock_Type100176 419733.5 7440609 1200 120 500 0.08 0.9 Fe & mn rich garnet quartzite100177 419720.5 7440653 290 35 100 0.005 0.4 anthoph./tremolite - magnetite rx100178 419717.3 7440669 3700 20 49 0.02 2.2 anthoph./tremolite - magnetite rx100198 419735.9 7440524 0 0 0100199 419741.5 7440698 130 20 45 0.005 0.05 pyroxene - magnetite rx107773 419745.8 7440486 400 400 110 0.03 0.3107774 419725.3 7440500 175 70 180 0.005 0.05107775 419728.7 7440501 84 40 130 0.005 0.05107776 419736 7440499 30 20 11 0.005 0.05107777 419750.5 7440507 1350 2500 560 0.09 1.5 JR gossan - sth end rx chip107778 419711 7440501 165 65 31 0.005 0.1107779 419704.2 7440506 330 80 31 0.04 0.2107780 419718.1 7440476 1050 30 66 0.02 0.1107780 419730 7440524 1050 30 66 0.02 0.1107781 419729.9 7440473 680 115 195 0.06 0.2107782 419733.2 7440473 7800 100 450 0.06 0.2107783 14000 75 400 0.13 3.8 JR pit107784 419741.2 7440471 1250 65 76 0.07 0.6107785 419727 7440527 7000 9800 50 0.08 4.4 anthoph./trem. - magnetite - malachite107786 720 920 56 0.02 0.4 anthoph./tremolite - magnetite rx107787 419733.5 7440521 900 440 130 0.005 0.3 anthoph./tremolite - magnetite rx107788 419741 7440516 780 290 62 0.03 0.05 anthoph./tremolite - magnetite rx107789 419753.5 7440522 1000 1900 1000 0.04 2.5 Fe-silicious gossan, JR goss107790 419734.6 7440534 6900 6600 230 0.08 0.6 pit, anthoph./tremolite - magnetite rx107791 419738.9 7440541 1200 2400 105 0.64 3 biotite schist + magnetite107792 419734.1 7440546107793 419734.2 7440544 7500 5100 84 1.52 54 anthop./trem - magnetite + malachite107794 419748.5 7440543 3800 570 820 0.14 1.6 gossanous anthoph./trem + mag - JR goss107795 419756.1 7440537 4200 1800 1250 0.08 1.4 banded mag - qtz gossan - JR goss107796 419762.9 7440519 8200 1350 960 0.12 4 Cu-stained anthoph./trem + mag107797 419720.1 7440546 6500 2500 78 0.61 10.8 Cu-stained anthoph./trem + mag107798 419728.4 7440555 9000 7000 84 2.95 11 anthop./trem - magnetite - qtz rx107799 419736.4 7440597 1450 330 145 0.16 0.6 brown calcareous - jasperoidal rx

Page 1 of 1

APPENDIX 2

MAGELLAN PERCUSSION HOLE AND ROCKCHIPASSAY RESULTS

JR MCS Bedrock Geochem dholes.xls

Hole Depth Prospect GDA94_E GDA94_N Cu_ppm Pb_ppm Zn_ppm Ag_ppm Au_ppm Ni_ppm Bi_ppmDH1 3.35 JR 419741.8 7440538 10900 11600 11700 0.35 18 DH2 1 JR 419720.7 7440641 1140 925 189 0.2 27 DH3 3.6 JR 419734 7440616 534 65 184 26 DH4 3.6 JR 419735.6 7440614 3012 172 360 0.7 25 DH5 3.2 JR 419765 7440524 6775 3266 1207 0.2 12 DH6 3.35 JR 419761.5 7440524 9000 920 1171 0.3 15 DH7 2.75 JR 419709.2 7440522 2860 600 175 10 DH8 2.75 JR 419719 7440518 1485 2928 1620 17 DH9 3.35 JP 420128.3 7435965 239 42 71 1

DH10 3.35 JP 420144.2 7435840 206 75 75 DH11 3.35 JP 420185.7 7435837 14 15 45 DH12 2.75 JP 420191.3 7435788 18 21 46 DH13 2.75 JP 420257.7 7435795 37 35 62 1 DH14 2.75 JP 420204.4 7435736 17 17 46 DH15 3.65 OP 421815 7440273 288 29 26 DH16 3.65 OP 421812.4 7440271 288 27 23 DH17 2.75 OP 421856.1 7440253 142 28 47 DH18 3.35 OP 421903 7440229 365 29 28 DH19 3.65 OP 421896 7440239 318 34 42 DH20 1.5 OP 421948.7 7440173 365 30 22 DH21 2.4 OP 421948.7 7440173 90 26 40 DH22 1.5 OP 421933.4 7440171 250 35 25 DH23 3.65 OP 421959 7440172 6935 28 26 DH24 3.65 OP 421872.7 7440314 16300 30 21 DH25 3.65 OP 421865.6 7440323 6417 9 40DH26 2.1 OP 421855.8 7440336 15300 10 41DH27 3.65 OP 421851.4 7440341 1816 2.8 37DH28 3 OP 421845.9 7440347 364 2 40DH29 2 OP 421840.4 7440357 8 2 40DH30 3.65 OP 421838.4 7440364 12 1 22DH31 2 OP 421815.8 7440413 104 DH32 2 OP 421818.2 7440413 40 DH33 2 OP 421821 7440413 358 DH34 2 OP 421804.8 7440415 36 DH35 2 OP 421803 7440415 2 DH36 1 OP 421802.8 7440384 68 DH37 2 OP 421805.5 7440384 1355 DH38 2 OP 421809 7440382 383 DH39 2 OP 421788.9 7440391 26 DH40 2 OP 421786.7 7440391 38 DH41 2 OP 421784.2 7440391 43 DH42 2 OP 421813.4 7440348 91 43 77 22 DH43 2 OP 421819.6 7440347 48 41 75 23 DH44 2 OP 421788.4 7440347 4000 37 43 22 DH45 2 OP 421786.4 7440347 245 37 42 24 DH46 2 OP 421784.5 7440347 159 37 30 24 DH47 2 OP 421823.2 7440306 13 44 37 24 DH48 2 OP 421825.4 7440308 70 35 35 24 DH49 2 OP 421827.5 7440310 43 48 37 22 DH50 2 OP 421817.1 7440299 100 37 28 24 DH51 2 OP 421816.3 7440298 40 44 37 24 DH52 2 OP 421815.4 7440296 189 46 45 24 DH53 2 OP 421845.7 7440278 65 42 35 22 DH54 2 OP 421847.9 7440280 75 40 30 24 DH55 2 OP 421850.2 7440282 67 37 25 22 DH56 2 OP 222 20 44 31 DH57 2 OP 230 42 32 22 DH58 2 OP 2958 33 25 24 DH59 2 OP 421885.3 7440253 130 26 36 35 DH60 2 OP 421886.4 7440254 74 33 37 32 DH61 2 OP 421887.4 7440256 45 40 31 22 DH62 2 OP 421881.3 7440245 15 48 38 24 DH63 2 OP 421907.8 7440236 190 45 34 24 DH64 2 OP 421909.5 7440238 887 48 43 24 DH65 2 OP 421911.2 7440240 470 43 39 24

Page 1 of 4


Hole Depth Prospect GDA94_E GDA94_N Cu_ppm Pb_ppm Zn_ppm Ag_ppm Au_ppm Ni_ppm Bi_ppmDH66 2 OP 421937.3 7440227 650 42 27 24 DH67 2 OP 421938 7440187 100 35 33 30 DH68 2 OP 421940.5 7440187 167 30 37 35 DH69 2 OP 421943 7440187 951 35 25 19 DH70 2 OP 421930.7 7440188 10 DH71 2 OP 421928.9 7440188 15 DH72 2 OP 421927.1 7440187 29 DH73 2 OP 421936.3 7440170 45 DH74 2 OP 421945.3 7440172 7800 DH75 2 OP 421928.7 7440171 62 DH76 2 OP 421927.2 7440171 180 DH77 2 OP 421925.6 7440171 190 DH78 3.65 OP 421840 7441128 59 16 66 DH79 3.65 C 421717.1 7441110 52 14 23 DH80 3.65 C 421726.9 7441126 306 10 30 DH81 3.65 C 421715.4 7441130 92 17 22 DH82 3.65 JP 420144 7435689 21 DH83 3.65 JP 420153.8 7435641 91 0.35 DH84 3.65 DH85 3.65 DH86 2 JR 419750.3 7440445 1097 44 54 4 DH87 2 JR 419748.1 7440448 765 100 100 3 DH88 2 JR 419746.8 7440451 1475 156 130 3 DH89 2 JR 419745.4 7440453 700 48 86 3 DH90 2 JR 419743.4 7440457 660 60 85 2 DH91 2 JR 419742 7440460 2327 51 80 2 DH92 2 JR 419741.1 7440463 1637 154 162 3 DH93 2 JR 419738.8 7440467 830 110 282 5 DH94 2 JR 419737 7440470 2885 1017 180 3 DH95 2 JR 419734.1 7440474 8600 75 310 3 DH96 2 JR 419713.9 7440526 370 200 70 2 DH96 419697.1 7440533 DH97 2 JR 419716.5 7440526 405 350 65 27 DH97 419699.5 7440533 DH98 2 JR 419718.8 7440526 1147 569 117 25 0.6 DH98 419701.8 7440534 DH99 2 JR 419721.5 7440526 715 560 125 16 DH99 419704.4 7440534

DH100 2 JR 419724.7 7440525 982 630 125 17 DH100 419706.9 7440534 DH101 2 JR 419727.9 7440525 1087 1660 170 10 DH101 419709.2 7440534 DH102 2 JR 419730.6 7440525 2022 6535 397 12 DH102 419712.3 7440535 DH103 2 JR 419734.2 7440525 915 590 275 5 DH103 419735.6 7440538 DH104 2 JR 419736.8 7440525 3440 1186 435 3.5 DH104 419737.6 7440539 DH105 2 JR 419740 7440524 3120 1162 1450 3 DH105 419739.7 7440540 DH106 1.2 JR 419743.1 7440524 2042 4160 4750 9 DH107 2 JR 419730.2 7440601 750 55 90 3 DH108 2 JR 419733.7 7440601 400 53 68 2 DH109 2 JR 419736.4 7440601 2050 967 830 3 DH110 2 JR 419737.9 7440601 620 185 240 2 DH111 2 JR 419710.7 7440659 1015 938 68 4 0.6 DH112 2 JR 419716.8 7440658 505 87 49 2 DH113 2 JR 419722.4 7440658 505 75 33 2 DH114 2 JR 419728.4 7440657 760 105 37 2 DH115 2.74 JR 90 26 24 DH116 2.74 JR 96 70 77 DH117 2.74 JR 59 93 142 DH118 2.74 JR 353 167 103 DH119 2.74 JR 293 150 268 DH120 2.74 JR 122 114 133

Page 2 of 4


Hole Depth Prospect GDA94_E GDA94_N Cu_ppm Pb_ppm Zn_ppm Ag_ppm Au_ppm Ni_ppm Bi_ppmDH121 2.74 JR 233 45 56 DH122 2.74 JR 810 54 56 DH123 2.74 JR 195 24 38 DH124 2.74 JR 15 22 31 DH125 2.74 JR 8 10 27 DH126 2.74 JR 8 22 62 DH127 2.74 JR 5 16 56 DH128 2.74 JR 3 9 30 DH129 2.4 JR 5 11 38 DH130 2.74 JR 419751.6 7441124 6 29 33 DH131 2.74 JR 419755.8 7441124 10 19 52 DH132 2.74 JR 419760.6 7441125 19 15 52 DH133 2.74 JR 419765.3 7441125 10 10 50 DH134 2.74 JR 419771.9 7441125 12 9 60 DH135 2.74 JR 419778.4 7441125 32 12 70 DH136 2.74 JR 419783.9 7441126 33 8 30 DH137 2.74 JR 419788.2 7441126 229 13 30 DH138 2.74 JR 419794 7441126 90 17 54 DH139 2.74 JR 419799.6 7441126 42 13 70 DH140 2.74 JR 419805 7441127 38 18 64 DH141 2.74 JR 419810.3 7441127 211 25 135 DH142 2.74 JR 419815.3 7441127 300 23 65 DH143 2.74 JR 419778.5 7441403 7 15 60 DH144 2.74 JR 419782.7 7441403 6 12 56 DH145 2.74 JR 419787.1 7441403 6 16 52 DH146 2.74 JR 419791.2 7441404 8 18 40 DH147 2.74 JR 419795.8 7441404 13 16 35 DH148 2.74 JR 419800.9 7441404 40 11 48 DH149 2.74 JR 419806.2 7441404 10 20 70 DH150 2.74 JR 419812.5 7441404 24 30 99 DH151 1.2 JR 419818.6 7441404 12 152 60 DH152 2.74 JR 419824.6 7441404 837 20 63 DH153 2.74 JR 419830 7441404 18 20 70 DH154 2.74 JR 419836.2 7441404 37 20 51 DH155 2.74 JR 419840.8 7441404 69 22 49 DH156 2.74 JR 419727.6 7440726 66 7 25 DH157 2.74 JR 419733.7 7440726 33 13 25 DH158 2.4 JR 419740 7440726 21 12 34 DH159 2.74 JR 419746.2 7440726 226 15 32 DH160 2.74 JR 419752.8 7440725 41 20 46 DH161 2.74 JR 419759.4 7440726 20 18 32 DH162 2.74 JR 419764.9 7440725 103 13 39 DH163 2.74 JR 419770.9 7440725 20 22 58 DH164 2.74 JR 419776.6 7440725 16 24 60 DH165 2.74 JR 419783.4 7440725 13 20 88 DH166 2.74 JR 419789.1 7440725 76 50 65 DH167 2.74 JR 419620 7440392 10 19 59 DH168 2.4 JR 419624.3 7440391 20 11 40 DH169 2.74 JR 419629.7 7440391 9 10 35 DH170 2.74 JR 419634.2 7440390 168 10 32 DH171 2.74 CC 421842.6 7441138 28 13 53 DH171 419639.3 7440389 DH172 2.4 CC 421847 7441139 67 28 53 DH173 2.4 CC 421852 7441139 32 27 53 DH174 2.4 CC 421856.4 7441141 29 36 52 DH175 2.4 CC 421860.9 7441141 41 45 57 DH176 2.4 CC 421864.7 7441142 37 33 46 DH177 2.4 CC 421870.2 7441143 24 33 45 DH178 2.4 CC 421875.1 7441143 60 35 35 DH179 2.4 CC 421880 7441144 36 29 19 DH180 2.4 CC 421885 7441144 39 32 24 DH181 2.4 CC 421890.1 7441145 56 37 25 DH182 2.4 CC 421894.3 7441146 39 32 23 DH183 2.4 CC 421899.8 7441147 28 29 23 DH184 2.4 CC 421904.3 7441147 47 30 23

Page 3 of 4


Hole Depth Prospect GDA94_E GDA94_N Cu_ppm Pb_ppm Zn_ppm Ag_ppm Au_ppm Ni_ppm Bi_ppmDH185 2.4 CC 421909.3 7441149 20 30 25 DH186 2.4 CC 421913.8 7441150 20 32 17 DH187 2.4 CC 421918.5 7441150 22 32 26 DH188 2.4 CC 421924.2 7441151 20 36 22 DH189 2.4 CC 421929.1 7441153 20 30 24 DH190 2.4 CC 421934.4 7441154 23 29 25 DH191 1 CC 421942.8 7441154 18 29 27 DH192 2.4 CC 421949.7 7441155 24 30 25 DH193 2.4 CC 421955.3 7441156 22 27 30 DH194 2.4 CC 421960.6 7441157 22 30 30 DH195 2.4 CC 421967.2 7441158 20 32 32 DH196 2.4 CC 421871.1 7441316 22 30 37 DH197 2 CC 421877.7 7441316 27 29 45

? 2.4 CC 20 36 42 DH198 2 CC 421883.4 7441317 24 29 40

? 2.4 CC 33 34 54 DH199 2.4 CC 421888.8 7441317 24 28 38 DH200 2.4 CC 421893.5 7441317 34 25 40 DH201 2.4 CC 421898.9 7441317 24 32 45 DH202 2.4 CC 421906.2 7441317 18 22 44 DH203 2.4 CC 421912.5 7441318 18 27 30 DH204 2.4 CC 421919.1 7441318 56 33 55 DH205 2.4 CC 421926.2 7441318 27 22 37 DH206 2.4 CC 421932.7 7441318 30 18 33 DH207 2.4 CC 421937.5 7441318 32 32 29 DH208 2.4 CC 421944 7441318 60 37 14 DH209 2 CC 421949.5 7441318 21 35 17 DH210 2.4 CC 421954.9 7441320 26 30 23 DH211 1 CC 421961.3 7441319 20 27 23 DH212 2.4 CC 421967.7 7441320 25 28 25 DH213 2.4 CC 421972.9 7441320 25 25 27 DH214 2.4 CC 421979.9 7441321 23 28 29 DH215 2.4 CC 421986 7441322 22 27 28 DH216 2.4 CC 421992.2 7441321 16 28 24 DH217 2.4 CC 421998.1 7441321 14 32 23 DH218 2.4 CC 422004.3 7441322 12 28 23 DH219 2.4 CC 422009.9 7441322 19 26 23 DH220 2.4 CC 422014.8 7441323 18 27 25 DH221 2 CC 422019.9 7441323 16 27 23

Page 4 of 4

FIGURES

9 TO 12.3

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ww

w

4196

00 m

E

4198

00 m

E

4200

00 m

E

7441000 mN

7440800 mN

7440400 mN

7440600 mN

(

(

(

Flinders Diamonds LimitedFlinders Diamonds Limited

STRANGWAYS PROJECTEL8489, MCS 227

Johnnies Reward ProspectGeochemistry

Soil Results Au(ppb)Drawing No:

FD00-051.wor

Date:Sep 2000

Author:A.M.

Drawn: Montana D&D P/L

Scale:1:2,000

#Soil Sample Location

Drillhole Location

ww

Johnnies Reward NorthJohnnies Reward NorthJohnnies Reward NorthJohnnies Reward NorthJohnnies Reward NorthJohnnies Reward NorthJohnnies Reward NorthJohnnies Reward NorthJohnnies Reward NorthProspect AreaProspect AreaProspect AreaProspect AreaProspect AreaProspect AreaProspect AreaProspect AreaProspect Area

Johnnies RewardJohnnies RewardJohnnies RewardJohnnies RewardJohnnies RewardJohnnies RewardJohnnies RewardJohnnies RewardJohnnies RewardProspect AreaProspect AreaProspect AreaProspect AreaProspect AreaProspect AreaProspect AreaProspect AreaProspect Area

10050050

metres

Projection: GDA94 (MGA53)

25

50

10

5

100

106

Soils Au(ppb)

as shown

Figure 9.

002

005

5

(



Dec2000

Author:A.M



Scale:as shown

EL8489, MCS 227Johnnies Reward/Pinnacle Prospects

Proposed Drill Targets

Figure 10.

MCS 227

41900

0m

E

42200

0m

E

7442000mN

7439000mN

42000

0m

E

42100

0m

E

7441000mN

7440000mN

Legend

IP Anomaly

- Strong

- Weak

EM Anomaly

Magnetic AnomalyTMI R to P

Gossan

9 Drill TargetQuartz veining

GridJohnnies Reward

WestPinnacles

New FollyAir Strip

Johnnies RewardJohnnies RewardJohnnies Reward

Pinnacles

OriginatorGeopeko

AGSOTectonicTCGL

MagellanAGSOAGSOTCGL

Line km2.74

16.1518.57

5.724.3711.223.22

14.98

Area Ha7.43

117.5679.7521.6

288.28288

12.26141.5

500m0

MGA94 (Zone 53)

PINNDDH 2

o-70 , 101m

PINNDDH 1

o-40 , 103m

PINNDDH 4

o-40 , 95m

Anomalies

1. AGSO; IPLine 5600N

2. AGSO; IP, EMLine 4800N

3. ; CRAE MagneticsJohnnies Reward North

4. , GEOPEKO, AGSO, CRAE;Johnnies Reward

Magnetic, EM, IP, SP

5. , AGSO, IPSCB

6. , AGSO; EMNew FollyNote: GEOPEKO Grid

00E to 100E,

800N to 1600N

- extended by

AGSO 1969

Surveys

1965 Geopeko - Magnetics, IP, Sp

1967 AGSO - Magnetics, IP, EM, SP

1996 CRAE - Magnetics

1999 TCGL - Magnetics

800N

1600N

1000E0

E

6000N

SouthernCross Bore

TCGL-W

AGSO

TECTONIC

TECTONIC

PINNACLES - AGSO

PINNACLES - AGSO

PINNACLES - MAGELLAN

PINNACLES - MAGELLAN

NEWFOLLY

TCGL - AIR STRIP

TC

GL -

AIR

STRIP

8

7

10

9

2

1

4

3

6

11

5

Ciccone’sShafts

CentralNo. 2

4800NAnomaly

5600NAnomaly

Johnnies RewardAnomaly

Johnnies Reward NorthAnomaly

SCBIP Anomaly

New FollyAnomaly

4800NAnomaly

5600NAnomaly

Johnnies RewardAnomaly

Johnnies Reward NorthAnomaly

SCBIP Anomaly

New FollyAnomaly

MCS 227

250m0

MGA94 (Zone 53)

2400

2000

4000

5000

6000mN

1000m

E

600

0m

E1000

1600

1200

800mN

800400

0m

E

400

200

800



Dec2000

Author:

A.M



Scale:as shown

EL8489, MCS 227Johnnies Reward Prospect

AGSO Grid Layout,Geophysical Anomalies &

Photo StructuresFigure 10.2

41

90

00

mE

42

00

00

mE

7442000mN

7441500mN

7441000mN

41

95

00

mE

2.- IP, EM

“4800N” Anomaly

1.- IP

“5600N” Anomaly

4.

- Magnetic, IP, EM, SP

“Johnnies Reward” Anomaly

3.

- Magnetic

“Johnnies Reward North”Anomaly

Legend

IP Anomaly

- Strong

- Weak

EM Anomaly

Magnetic Anomaly,TMI R to P

Gossan

Thrust Fault

Major Structural trend,Fault, Shear, ML, PL

AGSO Grid

Minor Structural trend

MCS 227

Legend

IP Anomaly

EM Anomaly

Magnetic Anomaly,TMI R to P

Gossan

Thrust Fault

Major Structural trend,Fault, Shear, ML, PL

005 Anomalous Drill holeand number

Minor Structural trend



Dec2000

Author:

A.M



Scale:as shown


Aerial Photo Interp., Structure,Geophysical Anomalies,Significant Drill Holes

Figure 10.3

42

00

00

mE

7441500mN

7441000mN

41

95

00

mE

42

05

00

mE

7440500mN

7440000mN

005

002

GP 1

250m0

MGA94 (Zone 53)

2.- IP, EM

“4800N” Anomaly

4.

- Magnetic, IP, EM, SP

“Johnnies Reward” Anomaly

3.

- Magnetic

“Johnnies Reward North”Anomaly

Gil

len

Cre

ek

MCS 227



Dec2000

Author:

A.M



Scale:

1:10,000

EL8489, MCS 227Johnnies Reward/Pinnacles Prospects

Geology and Structure

Figure 11.

500m0

Scale 1 : 10,000MGA94 (Zone 53)

42

10

00

mE

7441000mN

7440000mN

42

00

00

mE

42

20

00

mE

7439000mN

''''''''''''

''''

''

''

''

''''''''

''''''

''''''''''''

''

''''

''''''

''

''''

'''''' ''

''

''''''

''

''

''

''

''

Ciccone’s (Cu)

PINN4

CentralNo. 2(Cu)

Ophir(Cu)

PINN1

PINN2

OphirSouth(Cu)

CentralNo. 9(Cu)

Polly Boy(Cu)

Urals(Cu)

005

002

GP

'

Granitic gneiss

Amphibolite (mm norite)

Garnet gneiss

Fissile, fg qtz-garnet-magnetite bif

Magnetite diopside / tremolite (mm dolomitic carbonate)

Calc-silicate

Marble

Metasediment, qtz sericitic schist

Alluvium

Transitional alteration zonealtered chlorite gn, magnetite skarn,gossans, a, cs, strong mm retrogressionto green schist facies

Fg silicious quartzite

Massive to zones of high denistyquartz veining

Trend and plunge of lineation

Strike and dip foliation

Legend

Geology:

PINNACLES COPPER MINES

PINN 1,2,4 -Magellan Diamond Drillholes, 1968

1. URALS 7.25 tonnes @ 8.24% Cu2. CICCONES 50 tonnes @ 30% Cu (est.)3. CENTRAL No.2 33.5 tonnes @ 18% Cu, 90g/t Ag (est.)4. OPHIR 70 tonnes @ 10% Cu5. OPHIR STH. 20 tonnes @ 20% Cu6. Central No. 9 7. POLLY BOY 10 tonnes @ 15% Cu

Thrust Fault

Major Structural Trend - Fault, Shear, ML

Minor Structural Trend

Mine Location

Gossan

50

40

Rock Chip Sample >1000ppm Cu

Rock Chip Sample >1000ppm Cu

Percussion Drillhole Location

Garnet gneiss, amphibolite, calc-silicate

Marble, calc-silicate

70

40

40

50

5040

PinnaclesProspect

Area

PinnaclesProspect

AreaJohnnies RewardProspect Area

Johnnies RewardProspect Area

350

974

0.5%

515

0.35%

.

PINNDDH 1

o-40 , 103m

.PINN

DDH 2o-70 , 101m

0.7%

951167100

2915

10

190180

62

90

45

2500.8%

365

650

4574

130

15

318

470890

190

365

6775

60

142

288 288

4370

13

10040

189

48910.4%

245159

236

104

40358

43

38

261350

35568

12

8

364

1800

1.53%

0.64%

1.63%

5.9%

18%

12.4%

5.7%30%

1.1%

730

82199

710

360

360

252

136

6824

82

42

825468

117

42

18

00

mE

42

19

00

mE

42

20

00

mE

7440400mN

7440300mN

7440100mN

7440200mN

dump

dump

dump

dump

dump

dump

dump

dump

Adit

ma

ma

mama

CuCu

Cu

ma

mama

Cu

ma

mama ma

ma ma

ma

ma

Cu

Cu

Cu

Cu

Cu

.

288

252

ma

68

Legend

Pinnacles 1 & 2 Diamond Drillhole location

Wagon Drillhole locationshowing Cu assays ppm

Rock chip sampling traverseand grab samples showing Cu assays ppm

Schist, sheared calc silicate

Epidosite

Marble

Quartz stockwork veining

Quartz vein + malachite

Stope

974showing Cu assays ppm

MGA94 (Zone 53)

50m0


STRANGWAYS PROJECTDate:Dec2000

Author:A.M



Scale:as shown

Ophir ProspectGeology

Figure 11.3

415000mE

2km

420000mE 425000mE 425000mE

7445000mN

7440000mN

7435000mN EL8489

MCS227

OphirProspect

Area

“Ohpir North”Prospect

Area

“Ohpir South”Prospect

Area

MGA94 (Zone 53)

50m0

.

ALCOADDH 005

o-70 , 208.2m

ALCOADDH 004

o-60 , 108m

.

.

.

.

.

.

GEOPEKODDH 1

o-60 , 141m

ALCOADDH 002

o-60 , 126.5m

ALCOADDH 003

o-50 , 113.45m

ALCOADDH 001

o-50 , 131m

PINNDDH 3

o-53 , 166.42m

JR4

JR15

JR11

JR10

JR12

JR9

JR6

JR7

JR8

JR13

JR14

JR5

JR1

JR2

JR3

2

3 4

111 114

1 104

5

6

103

105

7 1

06

8

124

115

96

102

86 87

88 89

90 91

92

93 94

95

167 171

156 157 158 159 160 161 162 163 164 165 166

112

113

108 107

109 110

97

98 9

9 1

00

101

123

122

121

120

119

116

117

118

168 170 169

42

17

00

mE

42

18

00

mE

7440700mN

7440600mN

7440400mN

7440500mN

Legend

Gossan

Magnetite pyroxenite

M Carbonate - Skarn agnetite

Drainage

JR1

86

. Diamond Drillhole location and hole ID - Geopeko 1 141.00 - Magellan 1 166.42 - Alcoa 5 686.65 TOTAL 7 994.07m

RC Drillhole location 15 454mand hole ID

RAB Drillhole location 58 ~170mand hole ID

DDH 001



Dec2000

Author:

A.M



Scale:as shown


Drillhole Locationand Simplified Geology

Figure 12.

415000mE

2km

420000mE 425000mE 425000mE

7445000mN

7440000mN

7435000mN EL8489

JohnniesRewardProspect

Area

MCS227

MGA94 (Zone 53)

50m0

9m @ 258ppm

0.11%

0.14%

0.16%

0.2%

0.17%

0.54%

0.81%

0.31%

0.19%

0.6%

0.35%

6m @ 0.58%

0.5%

54m @ 0.36%

5m @ 0.27%2m @ 0.24%

0.65%

40m @ 0.3%

29m @ 0.26%

62m @ 0.26% 19m @ 0.15%

.

DDH 005o-70 , 208.2m

DDH 004o-60 , 108m

.

.

.

.

.

.

DDH 1o-60 , 141m

DDH 002o-60 , 126.5m

DDH 003o-50 , 113.45m

DDH 001o-50 , 131m

DDH 3o-53 , 166.42m

42

17

00

mE

42

18

00

mE

7440700mN

7440600mN

7440400mN

7440500mN

415000mE

2km

420000mE 425000mE 425000mE

7445000mN

7440000mN

7435000mN EL8489


Area

MCS227

5m @ 0.27%

0.65%

.

Legend

Diamond Drillhole & Au assays

RC Drillhole location

RAB Drillhole location & Cu assays >1000ppm

Gossan


M Carbonate - Skarn

Drainage

& Au assays

agnetite



Dec2000

Author:

A.M



Scale:as shown


Drillhole Geochemistry Results- Copper (ppm)

Figure 12.1

MGA94 (Zone 53)

50m

42

17

00

mE

42

18

00

mE

7440700mN

7440600mN

7440400mN

7440500mN

DDH 005o-70 , 208.2m

DDH 004o-60 , 108m

.

.

0

0.3g/t

0.22g/t

0.17g/t0.18g/t

1.0g/t

0.27g/t

0.83g/t

9m @ 0.31g/t

0.46g/t

17m @ 0.45g/t

9m@ 0.61g/t

9m @ 0.58g/t 21m @ 1.06g/t

0.16g/t

0.2g/t

No Assays 8m @ 0.76g/t

0.7g/t

0.16g/t 51m @ 1.83g/t

5m@ 4.84g/t

0.56g/t

0.6g/t 0.35g/t

0.2g/t

0.37g/t0.3g/t

0.96g/t

15m @ 1.04 g/t

.

.

.

.

. DDH 1o-60 , 141m

DDH 002o-60 , 126.5m

DDH 003o-50 , 113.45m

DDH 001o-50 , 131m

DDH 3o-53 , 166.42m

415000mE

2km

420000mE 425000mE 425000mE

7445000mN

7440000mN

7435000mN EL8489


Area

MCS227

0.25g/t

0.65g/t .

Legend

Diamond Drillhole & Au assays

RC Drillhole location

RAB Drillhole location

Gossan


M Carbonate - Skarn

Drainage

& Au assays

agnetite



Dec2000

Author:

A.M



Scale:as shown


Drillhole Geochemistry Results- Gold (grams/tonne)

Figure 12.2

250m0

MGA94 (Zone 53)

415000mE

2km

420000mE 425000mE 425000mE

7445000mN

7440000mN

7435000mN EL8489


Area

MCS227

MCS 227

41

95

00

mE

42

00

00

mE

7441000mN

7440500mN

7440000mN



Dec2000

Author:

A.M



Scale:as shown


Ground Magnetic Interpretation

Figure 12.3

Legend

Ground Magnetic Interpretation

1. CRAE TMI North Illum.2. CRAE TMI East Illum.3. AE TMI R to P

TMI Anomaly

TMI R to P Anomaly

Gossan

Thrust Fault

Major Structural Trend - Fault, Shear, ML

Minor Structural Trend

“Johnnies Reward”Prospect Area

flinders diamonds limited

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