NEW INITIAL INFERRED JORC URANIUM RESOURCE (approximately 10.4m lbs) 17th May 2007 : In February 2007 following the merger with Skeat Gold Mining of South Africa the Company adopted a strategy to investigate the uranium potential in the 285Mt of gold bearing slimes owned by Mintails. These 285Mt of slimes originated mostly from the high grade underground gold and uranium mining activities of West Rand Cons, Luipaardsvlei and, East Champ DÓr. These mines have historically produced uranium. Durban Roodepoort Deep and Rand Leases have only produced gold to date. Anecdotal evidence indicates that from 1980 onward, while the uranium price was at historically low levels, the uranium recovery operations of these mines were terminated, resulting in slimes being deposited onto the slimes dams after recovery of the gold, but without any recovery process for uranium having been undertaken. This historical decision not to process the slimes for uranium recovery, the higher current uranium price and more efficient metallurgical recoveries have combined to create an opportunity with respect to the exploitation of these slimes for their uranium potential. As a consequence of this scenario the Mintails Board initiated a uranium focused exploration drilling programme (including assaying drill samples for uranium), a metallurgical testwork campaign and a plant design study. The partially drilled and laboratory tested slimes (approximately 30% of the slimes have been tested – refer Table 1) has yielded the following result: • A total resource of approximately 10.4 million lbs of uranium (U3O8) within the Inferred category in terms of the JORC Code (from 86 million tonnes of slimes). A further 71 million tonnes of the slimes have been the subject of auger drilling and sampling (1.5 metre composites) with grade estimates having been provided by reputable laboratories. The Company has also established exploration targets with respect to a further 118 million tonnes of slimes (refer also to Table 1). It is anticipated the results from this ongoing exploration program will be concluded over the next eight weeks. Metallurgical testwork undertaken by Mintek Laboratories (Johannesburg) relating to the recovery of uranium from the slimes indicates potential for recoveries in the range of 70% to 86%. Conceptual plant design work has commenced to now incorporate a uranium recovery circuit into the Wergo Gold Plant. Due to the fact that Mintails acquired substantial plant and equipment from Anglogold Ashanti's Ergo operations, Mintails could be in a position to commence production by the second quarter of 2008. As the infill drilling programme, metallurgical testwork campaign and plant design continues further update’s will be released. TABLE 1 Slime Inventory – May 2007 – (Competent Person – P.M. Camden-Smith) Dump JORC Category Tonnes (Millions) Grade U3O8 (g/t) U3O8 Tonnes U3O8 Pounds (million) Date Audited 1L28 Inferred 18.96 96 1,820 4.01 12th May 2007 2L24 Inferred 54.27 35 1,899 4.19 12th May 2007 1L13 – 15 Inferred 6.83 68 464 1.02 15th May 2007 1L23 – 25 Inferred 6.20 88 546 1.20 15th May 2007 Total Inferred 86.26 54.8 4,730 10.43 Various Exploration Results 71 <10 to 68 — — 15th May 2007 2L24 Exploration Target 118 — — — 15th May 2007 Total 189 — — — Competent Person : P.M. Camden-Smith, M.Sc. (UCT); G.D. Eng. (Wits); M.B.L. (Unisa); Pr.Sci.Nat. Low-grade dumps (<15 g/t) are not included in the Inferred category Exploration Results on slimes dams were auger drilled, sampled (1.5m composites) and grade determined by reputable laboratories Exploration targets are for slimes dams of lesser uraniferous priority derived from processed Main and South Reef orebodies. In respect of Exploration Results and Exploration Targets any discussion in relation to potential grade or quantity is only conceptual in nature, as there has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource. The information in this report that relates to Exploration Results or Mineral Resources is based on information compiled by Peter Camden-Smith M.Sc (UCT), G.D. Eng (Wits), M.B.L. (Unisa); Pr. Sci.Nat, a member of the Geological Society of South Africa being a Recognised Overseas Professional Organisation included in a list promulgated by ASX from time to time. Mr Camden-Smith is employed by Camden Geoserve cc (South Africa). Mr Camden Smith has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Camden-Smith consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. Deeck van der Walt
Note i have changed name D_Ck van der Walt because of profanity in post? CEO
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