BRANSAN (JOINT VENTURE)

Reported that a limited RC drilling programme was completed to test the up dip portion of the mineralisation encountered in the diamond holes on the Diadiako prospect reported last quarter. The drilling confirmed that the mineralisation is characterised by a shallow south to south-east dip. Geological mapping and termite sampling programmes to help define other drill targets at the Diadiako and Goumba Gamba prospects are underway.

Work was completed during the quarter on the detailed computer modelling and optimisation process to complete a preliminary mine plan for the project. Also reported that deep hydrological drilling continued throughout the quarter to evaluate make-up water supplies for management of the dredge pond levels. The target aquifer is within Maestritchien sandstones located some 460 metres below surface. A third bore hole (DW1) is at a final depth of 508 metres. The bore has traversed 53 metres of coarse sands underlain by 7 metres of a clay horizon. The presence of “coarse sands” suggests a good aquifer has been intersected by this hole. Pump testing is awaited Ilmenite Project The development plan and feasibility study to incorporate ilmenite are continuing. During the period, an internal study was undertaken to include the production of ilmenite as a commercial sales product which indicates that this approach is both technically feasible and economically attractive. It is planned to finalise the study in the March 2009 quarter and include the results in the updated feasibility study which is expected to be completed by end of the second quarter in 2009

Diamond drilling commenced to test part of the fold hinge zone on the Diadiako prospect. Gold mineralisation intersections were encountered in two of eight widely spaced holes. The intersections include: • BSDD007: Interval of 14 metres @ 0.78g/t gold from 80 metres; and • BSDD008 : Interval of 7.6 metres @ 2.24g/t gold from 193 metres, located within a broader mineralised zone from 189 metres, which averages 1.43 g/t gold over 13 metres.