SEL 9591 1996-1997 Annual report to 31 October 1997

Abstract

Three MMI soil sample programmes were conducted, at McCallums Creek, Kazi prospect and Western Arm extension area. Results from McCallum Creek defined two sub parallel north-west trending zones extending for 500m, at the Kazi area an anomalous Au zone is indicated in the southern sample line and possibly three low order Au anomalies, whilst the Western Arm extension area did not indicate distinctive anomalism. Additional RC drilling at the Kazi prospect firmed up the mineral resource to 1,156,670 tonnes at 2.06glt Au. Similarly RC drilling at the Ios prospect is estimated to contain a resource of 546,470 tonnes at 1.969glt Au, using a cut off of 1.0glt Au and 812,310 tonnes at 1.59glt Au with a 0.7glt Au cutoff. A resource was calculated for the Sikonos prospect; at 0.7glt Au cutoff, it contains 401,680 tonnes at 1.97glt or 293,150 tonnes at 2.41 glt with a 1.0glt cutoff. An extensive public environmental report was prepared for the Burnside prospect and encompasses the Kazi, Ios and Sikonos exploration.