Annual report on EL 10320, April 2005 to April 2006

Abstract

During the reporting period, literature survey was done which indicated that gold mineralisation is confined to a tight south-plunging Anticline associated with a 8-10m wide shear zone. It is located to the west of the fold axis. The mineralised shear is westerly dipping with an alteration assemblage of haematite, sericite chlorite and silica. Current tests show that the mineralisation is amicable to heap leach recovery. Sufficient exploration work has been completed to indicate a resource of over 14,000 t with grades up to 9 or 10 g/t. Field visit determined that geochemical sampling program should be carried out to assess the gold prospectivity of the area.