CAPRICORN

Exploration focused on further gold-in-soil geochemical surveys over the geophysical anomalies identified in the past year with an objective of delineating targets with subcropping gold mineralization. Low level gold anomalies have been identified over certain targets where results have been received. Elsewhere in the region, coincident gold-in-soil and aeromagnetic anomalies are closely associated with mineralized gold-bearing sheeted veins. Such is the case on the adjacent property at the Otjikoto gold deposit of Teal Exploration and Mining Incorporated. The results of most of the sampling surveys have been received and the higher priority targets have been identified and tenders have been called for from drilling companies. It is aimed to commence this drilling in the forthcoming quarter.

The collection of approximately 2,500 soil samples on regional sampling lines and on seven grids over geophysical anomalies was completed.

Five clusters of aeromagnetic anomalies over a cumulative distance of 19 km within the existing Capricorn licence areas were delineated. Subsequently the initial soil sampling orientation survey discovered gold anomalies in the areas overlying and coincident with the aeromagnetic anomalies. Based on these results, drilling was to commence in Apr/04. In addition, the gold soil-sampling program, in the original Capricorn licence areas, will continue, focusing on the areas of the aeromagnetic anomalies, which have not been sampled yet. Furthermore, the aeromagnetic data for the new licence areas will be acquired and thereafter the interpretation of the data will commence immediately.