currently drilling. gold producer 08

Makes for very good reading for a company with a fully diluted market cap of $7 Million and $2 Million in the bank. Drilling in very prospective Goldfields area with known gold mineralisation, will produce gold from small open pit operations in 08 and these guys WILL pick up another project this year. They have many solid contacts and its a matter of who you know not what you know in this game. This is a low entry orice for something that could be potentially huge.

CARBINE RESOURCES FIRST QUARTER ACTIVITIES
REPORT FOR THE PERIOD ENDED 31 MARCH 2008
HIGHLIGHTS
• The Catherwood deposit feasibility study nears completion with detailed pit designs finalised, the formal Mining Proposal lodged with the Department of Industry and Resources, and negotiations with mining services providers and processing plant owners in the advanced stage
• Subsequent to quarter-end, exploration drilling has recommenced on a series of prospects within the West Kalgoorlie JV tenement package. Resource definition drilling on the Boundary prospect commenced early to mid April 2008 and this program will be followed by a small program following up from an isolated intercept of 10m @ 12.61 g/t gold from 53m at the Sabrina prospect
• Work has commenced on preparing a feasibility study for the mining of the Picante deposit. It is possible that this project could dovetail with the completion of mining at Catherwood, providing a second mine production centre
• Carbine continues to assess acquisition opportunities both overseas and in Australia. Currently several resource projects are being appraised. The market will be informed via an ASX announcement if and when these project opportunities reach an advanced stage

WEST KALGOORLIE JOINT VENTURE (CARBINE EARNING UP TO 70%)
Carbine Resources Limited (“Carbine”) is earning up to 70 percent by farming in to Cazaly’s entire gold exploration and development portfolio in the Kunanalling, Ora Banda, Grants Patch, Carbine and Split Rocks regions. These tenements cover approximately 533 square kilometres and now contain mineral resources of 597,700 ounces of gold.
Activities for the period were focussed on completing the approvals stage for commencement of mining of the Catherwood deposit, finalising detailed mine designs, developing a mine schedule, and negotiating commercial terms with owners and operators of mining fleets and gold processing plants.

Carbine Resources Limited
First Quarter Activities Report
March 2008
Exploration for the period was limited by the lack of availability of suitable drill rigs. Drill programmes have been designed for the Backflip prospect in the Grants Patch Project area, the Boundary prospect (Ora Banda), and the Sabrina prospect (Kunanalling).
Exploration and Resource Definition Drilling
Subsequent to the end of the period a RC drill rig was mobilised to the Ora Banda area and has commencied a resource definition program at Boundary. The rig will then be mobilised to Kunanalling to drill test Sabrina and to possibly conduct a targeted in-fill program at Picante. The Sabrina prospect has nearby historical small-scale mine workings and has one isolated drill intercept of 10m @ 12.61 g/t gold from 53m, with no other known drill hole of greater than 40m depth within 400m from the prospect.
An RC drill rig capable of drilling deep holes has been sourced to conduct a 3,800 metre program at Backflip following on from the significant mineralisation identified in the previous two quarters of:
• 9m @ 16.1 g/t gold from 94m
• 19m @ 13.2 g/t gold from 108m
• 3m @ 16.0 g/t gold from 121m
• 2m @ 12.3 g/t gold from 123m
• 3m @ 6.9 g/t gold from 129m
• 4m @ 5.0 g/t gold from 113m
It is anticipated that drilling at Backflip will commence in May 2008.

Catherwood Deposit
During the March 2008 quarter Carbine submitted the Mining Proposal for the Catherwood open pit cutback to the Department of Industry and Resources (DoIR). It is anticipated that an approval decision will be forthcoming in the current quarter.
Catherwood is located adjacent to the Coolgardie North road, 33km north of Coolgardie. It has an existing measured, indicated and inferred resource of 553,000 tonnes at 2.49 g/t Au for 49,000 ounces in the hanging wall and underlying an existing pit mined to a maximum depth of around 60m in 1988-89.
A feasibility study is very close to be completed. A detailed pit design has been finalised, a mine schedule has been developed, and a cash flow model has been constructed. It is anticipated that an ore reserve statement will be signed off by our Independent Consultants in the next few weeks. Alternatives for processing of the ore, sourcing of mining equipment and personnel, and completion of the approvals stage are at an advanced stage.
Carbine is targeting gold production in 2008, and it considers a stage 1 Catherwood pit cutback as a relatively low risk entry into the ranks of Australian gold producers.

Picante Deposit
Picante is located approximately 45km north of Coolgardie. Access is via the North Coolgardie Road and then approximately 500m of dirt track. It has an existing measured, indicated and inferred resource of 388,000 tonnes at 3.01 g/t Au for 37,500 ounces.
An optimisation study derived an open pit shell that contained 70,000 tonnes @ 3.45 g/t gold for 7,700oz when a A$900/oz gold price was assumed.
A review of the resource and optimisation study by an Independent Consultant was recently conducted. The review recommended that another 2 to 5 holes should be drilled and stated that the Picante deposit has adequate work completed to progress to feasibility stage.

RED DAM PROJECT (CARBINE 100%)
Carbine owns 100% of the Red Dam project, which is situated approximately 45 kilometres north-west of Kalgoorlie, Western Australia. The project contains indicated resources of 683,000 tonnes @ 2.44 g/t gold and inferred resources of 1,187,000 tonnes @ 2.45 g/t gold for a total resource of 147,400oz of gold, when a 1 g/t gold lower cut-off grade is applied. The resources are constrained within the northern most area of the project known as the Petrus deposit, where the vast majority of historical and recent exploration drilling has occurred.
Some data review was conducted during the period and additional desk-top study work is planned for the June 2008 quarter.
3. CORPORATE
As at 31 March 2008, Carbine had A$1.82 million cash in hand.
Carbine has 34,600,343 ordinary shares on issue, with only 23,717,843 currently quoted on the ASX. It also has on issue 2,000,000 unlisted options exercisable at $0.25 expiring 31 December 2009 and 400,000 unlisted employee options exercisable at $0.35 expiring 30 June 2009.
The Company continues to seek out project acquisition opportunities that are designed to enhance shareholder value. At present Carbine is appraising several resource projects, but the outcome of these appraisals are still uncertain and do not warrant further disclosure.