Annual exploration report on EL 10213, Maud Creek East, year ending 19 June 2004

Abstract

Following two seasons of intensive diamond and RC drilling at the Main Zone gold deposit, Harmony concluded that the Maud deposit did not meet its corporate objectives. In addition it was too distant from the Burnside JV's main centre of activity at Brocks Creek. In addition, the closer Union Reefs operation, which had been a means of treating Maud Creek ores in 2000, was closed. These factors combined to compel Harmony to seek a buyer for the Maud Creek project tenements in 2003-2004. Some interest has been expressed by potential buyers during the intervening period and more time is needed to conclude negotiations. This change of direction meant that during the year no further field work was carried out on the project area including EL 10213.