GADARWARA

The company will reexamine the potential for commercial grade gold in the Gadarwara BIF once the PL is granted.

Reported that the concealed source of the large magnetic anomaly has been identified by the company's drilling program as being a banded iron formation - BIF. The formation consists of thinly layered jasper, hematite, quartzite, magnetite, carbonate and metatuff. Traces of pyrite, pyrrhotite and chalcopyrite are present. Jarosite (iron sulphate) and goethite (iron oxide) are prominent as oxidized products of the hematite and magnetite. Of the 441 metres of bedrock cored in two holes, the iron content ranges from a few percent to 57%. Copper and gold are at subcommercial levels. The beds dip moderately north. The thickness of the entire deformed assemblage is estimated to be 1,500 metres. The program established that the thickness of the overburden is 300 metres, plus or minus 12 metres.

Started drilling the first of three holes. Each of the three vertical holes is expected to penetrate 300 to 400 metres of alluvium and 200 metres of bedrock. If downhole conditions permit, the company will place electrodes in the bottom of each hole for later resistivity and induced polarization surveys in radial patterns around the holes.