Annual exploration report ERL 97 Western Arm Year ending 18 September 2005

Abstract

During the year work on the tenement was limited to economic studies that re assessed the impact of the purchase of the Union Reefs mill. A review by a geological consultant confirmed the deposit is low grade, of complex geometry and is now more distant from available treatment facilities. On the other hand the Union Reefs mill has advantages of capacity and low unit treatment costs and higher gold prices may change the equation. While evaluation of the prime gold resources at Zapopan and Cosmo Howley is in progress, and pending grant of the mineral lease applications over Western Arm, the expenditure levels are expected to remain modest. In terms of conceptual interpretation of the Western Arm locality, the possible linkage with NE striking and SE dipping fracture swarms cutting anticlinal axes offers an avenue for exploration targeting in the area. During the year expenditure on conceptual interpretation, reporting and economic modelling studies totalled $7,075.00.