EL 8413 Running Creek 3 Seventh annual report for the year ending 28 December 2000

Abstract

The company conducted preliminary study on the project based on the preliminary resource of 1 Mt at 0.3 percent Co and 0.15 percent Ni. A review of the geological work conducted by Rio Tinto was carried out and proposed exploration program has been established. A comprehensive report including statement of the mineral resources was completed. The indicated resources are 0.8 Mt at 0.15 percent Co, 0.15 percent Cu and 0.08 percent Ni and inferred 0.1 MT at 0.12 percent Co, 0.12 percent Cu and 0.04 percent Ni. Further work is planned to upgrade resources to measured resource category and to possibly expand the existing ore body and define other target areas for cobalt in proximity to the existing mineralisation.