Group Annual Report MLS 119 to 133, MLS 153, MLS 167, MLS 168, MLS 180 Central Tanami Project GR26/09 from 1 January 2012 to 31 December 2012

Abstract

Exploration consisted of a comprehensive project review, a pit optimisation study, the ongoing feasibility study and drilling. The comprehensive project review identified multiple areas where the resource had significant potential to be expanded. As result the 2012 drilling focused on the Beaver deposit. At the Beaver deposit the drilling extended the mineralisation beyond the previous limits at depth, to the north east and east of the main mineralisation which enhanced the open pit viability of the deposit. Significant results being returned included. BVRC12 - 4m at 6.4 grams per tonne Au from 137m; BVRC22 - 4m at 3.0 grams per tonne Au from 182m; BVRC23 - 4m at 5.3 grams per tonne Au from 101m. An open pit optimisation for the Beaver deposit was completed including the 2012 drilling data, a geological interpretation and resource re - modelling. The results of the drilling led to an ore block remodelling and an upgrade of the mineral resource estimates from the 2001 Normandy-Otter estimate of 419,360t of ore at 3.49 grams per tonne totalling 47,095 ounces to a total of 550,669t of ore with a grade of 3.31 grams per tonne for 58,533 ounces of gold. At the Southern Deposit MLS 122, 123 the geotechnical drilling generated the sample material for further metallurgic tests as required by the definitive feasibility study. Results were pending at the time of writing this report. The highest overall assay result returned was 36.28 grams per tonne gold from the 20m to 21m interval in hole BVRC0033. As an ongoing process the results of the metallurgical test work are amalgamated with previous results and modelled to ascertain specific recoveries for different states of oxidisation and mineralised lodes.