Annual report for MLS 8 The Granites covering work undertaken from 15 May 1998 to 14 May 1999

Abstract

11 RC holes were completed at Chapman's Hill to test the Hangingwall unit, 4 holes intersected low grade mineralisation i.e. 5m at 2.11 g-t Au and 3 m at 4.5 g-t Au. Two diamond drillholes were completed, one of which intersected 4 mineralised horizons i.e. 1.5m at 1.86 g-t, 1.25 m at 7.69 g-t, 0.5 m at 16.57 g-t and 0.5 m at 1.07 g-t Au. The tenement contains an open pit resource of 1.8 million tonnes with 173 400 contained ounces and an underground resource of 3.6 million tonnes with 425 300 contained ounces of gold. Digital data for drilling received.