NYMAGEE MINE

Drilling below the old workings of the Nymagee Copper Mine intersected 9.79 m @ 0.06 g/t Au, 0.5% Cu, 7.3% Pb, 13.1% Zn and 31g/t Ag from 348.56 m (including 5.8 m @ 9.5% Pb and 17.2% Zn).

Drilling is planned to evaluate the induced polarisation geophysical and geochemical targets on the leases at Nymagee Mine JV. At Lowan Joint Venture, IP interpretation of the recently completed survey, coupled with a review of previous drilling at Lowan South has indicated untested chargeable responses that can be tested by RC drilling. A programme is being planned. Also, Drilling is planned to test the IP targets and downhole EM previously defined by the company at Sandy Creek and Wirlong prospects. At Kilparney, the prospect is characterised by a large ovoid shaped magnetic anomaly. Modelling has indicated that a previous drill hole has been drilled over the top of the anomaly and may not have tested the source. A drilling programme is being planned. At Gilgunnia project area, An IP survey has been completed and a number of en echelon disposed chargeable anomalies have been recognised. Drilling is planned to test these anomalies.

IP surveying was completed over the area and possible extensions. A previous IP survey tested the 5 kilometres long structural corridor from Hera to Nymagee Mine and identified an anomalous chargeable feature at its northern end (immediately south of the mine workings). Additional IP surveying has been completed and several new chargeable responses were recorded. Rock chip sampling has returned anomalous levels of gold and base metals in the footwall to the mine sequence. These results suggest a target on the Footwall Zone midway between Main Shaft and Higgins Shaft to the north. At the Wirlong prospect, an IP survey has been completed to determine the likely extent of mineralisation beneath cover to the north and south of known old workings. A chargeable body on the northern traverses was recorded and represents a high priority drilling target. At the Sandy Creek prospect, IP surveying has indicated that the chargeable body defined in the 2002 survey and subsequently demonstrated to be sourced by massive sulphide mineralisation, continues to the north. The anomaly remains deep and increases significantly in its chargeability amplitude to the north. A second chargeable, low resistivity body develops to the east of the original target. Additionally, some chargeable bodies have been defined in the southern part of the prospect. Drilling is planned to test these targets.