1998 Annual report on MCN's 4134 to 4152, 4218 to 4225 and 4343 to 4345 for the reporting period 1 January 1998 to 31 December 1998

Abstract

A structural assessment and aeromagnetic interpretation was completed by consultants. 99 soil samples were collected to infill prospective areas of 100x25 in spacing and defined a low order anomaly within MCN 4135. Reverse circulation drilling was completed at the Main zone to test the deeper mineralisation and also at peripheral anomalies(prospects). At Curlies 2 holes returned narrow mineralisation to 1.5g-t Au, the area is considered to be similar to the Main zones. At O'Sheas drilling has outlined a resource of 19320 tonnes at 3.11g-t Au. A resource estimation completed in February has 8,146,000 tonnes at 3.07g-t Au, both estimations used a 1g-t cutoff. Pit 16 is estimated to contain proven and probable reserve of 463381 tonnes at 6.79g-t Au. The refractory ore has been tested by a BIOX pilot plant run with a 90 percent recovery whilst the non-refractory ore has been tested by Leachwell and also a + 90 percent recovery is indicated. In addition SAG Mill test work was completed whilst a feasibility study is still in progress.