GRAND CAPE (GBAPOLU)

Reported that in conjunction with a field sampling program of the Henry Town shear zone, had discovered a near continuous anomalous gold mineralisation over a strike length of 5.5 km and total surface area in excess of 3.5 sq km. A total of 1,370 samples were assayed, of which 100 samples returned gold “Au) values equal to or greater than 0.1 g/t, 17 samples returned values greater than 0.5g/t Au, and 9 samples returned values greater than 1g/t Au.

Announced it had recently completed an extensive gold sampling programme. The current focus of activity has been on a gold anomaly within the Henry Town region of the Grand Cape property, where native gold is exploited by local artisans, which previously returned gold values of up to 13g/t gold in grab samples.

Reported on continuing reconnaissance and development success on its properties. Nine kimberlite targets have been generated with 75% of the reconnaissance sampling completed. Two targets are pipe-like bodies, three are inferred dyke trends in excess of 500 m long. Ground magnetic anomalies are present, coincident with interpreted kimberlite pipes and dykes on the three targets surveyed. Macro-diamonds (0.05 cts, 0.08 cts and 0.22 cts) have been recovered during grid sampling and pitting of a fourth 3 km long dyke target on Grid 5. Geophysical response of the pipes on Grid 4, sampled at 25m intervals along the line and 50m between lines, indicated discreet non-linear anomalies. The area of the pipes could not be confirmed by the magnetics, but they are inferred from the size of the swamps within which they occur to be approximately 3 hectares (ha) and 1 ha respectively. These targets will require further investigation with geophysics (EM and/or ground penetrating radar) and drilling to confirm dimensions. A comprehensive test of grade by bulk sampling these targets is planned after pitting on one pipe target failed to produce diamonds. The acquisition of a small diamond recovery plant is being considered to facilitate analysis of bulk samples of the kimberlitic material for grade under secure conditions.