Progress report on exploration of Golden Dyke Properties.

Abstract

Leases under control of Oceania Exploration & Mining NL cover strike extensions of the Golden Dyke lode horizon for 160 metres north and 600 metres south of the open pit gold mine of Henry & Walker. The lode horizon, historically known as the 'main reef', is a banded iron formation interbedded with pelitic metasediments and sills of metadolerite. At Henry & Walker's open pit the main reef contains a high grade oreshoot about 110 metres long and 4.5 metres wide. In Oceania's ground sampling of trenches and soils shows the main reef to be associated with anomalous arsenic and anomalous to low potentially commercial gold values along its full length, with a clustering of higher values at the southern edge of the property where the horizon terminates against a fault. Parallel reef lines show relatively weak and discontinuous gold-arsenic anomalies. Diamond drilling on a cross section 90 metres north of the open pit (KD-1) intersected quartz veining with 1.0m @ 7.7 g/t gold at 37 metres below surface. A deeper hole on the same section (KD-4) intersected the reef at 84 metres below surface without obtaining significant values. Diamond drilling on cross sections 80 metres and 160 metres south of the pit intersected the reef but did not obtain significant gold values. (KD-2, KD-3 & KD-5). A single diamond drillhole (KD-6) at the southern end of the leases, about 30 metres north of the faulted termination of the main reef, intersected 5 metres @ 1.7 g/t gold at 33 metres below surface. This compares closely with results of previous trenching and drilling by Geopeko in this area which demonstrates a zone at least 250 metres long and 4 to 5 metres wide, and averaging about 2 g/t gold. This zone has been intersected in six drillholes on four cross sections to a maximum depth of 50 metres below outcrop.