DRILLING AND EXPLORATION UPDATE Little Bygoo Tin Drilling The initial open hole percussion drilling program at Little Bygoo has now been completed, with 1,613 metres drilled in nine holes. This makes a total of eleven holes drilled to date. Hole locations are shown on the figure below and former open cuts are present on the greisen subcrops west of the drill holes. Assay results from the initial Cluff drilling (LB 1 and LB 4) have been received, indicating that neither hole intersected a tin mineralised zone. Replotting of the cross sections shown below demonstrates that the tin bearing rocks are not tabular but plunging to the east, and the holes may have been too shallow to intersect mineralisation. Hole LB 1 was terminated because of lack of additional drill rods at the time, and can now be deepened if warranted. Hole LB 4 was near the limit of the drilling rig. An alternative interpretation is that the greisen is displaced between the drill holes by a fault. These possibilities are being tested by both the recent drilling, and planned future drilling. The recent percussion drilling program (shown in red) was aimed to infill areas between previous drilling by Ardlethan Tin (shown in blue) to allow possible determination of an inferred resource of tin in the area between the open cuts and Cluff’s initial drilling. Future drilling will aim to extend such a resource to the north and south, and investigate its presence and mode of occurrence to the east, where mineralisation appears to be increasing in grade. This could be accomplished by the drilling of angle holes using the company’s newly modified drilling rig. Samples from this recent drilling are with the assay laboratory, and results will be available in due course.
Leviathan Mine Assays of the granitic dyke at the former Leviathan tin mine demonstrated it was not tin bearing. Egerton Gold Drilling Drilling at Egerton, 20 km east of Ballarat in Victoria, has reached a depth of 124 metres, and is continuing. Target depth is approximately 560 metres. Extremely altered and soft slates and sandstones have been penetrated, with a stock work of narrow quartz veins developed within them. Wire line triple tube coring recovered only very small amounts of core due to the contrast between the soft bedrock and hard quartz stringers. Two coring diamond bits were destroyed by movement of the quartz stringers during drilling. Accordingly open hole roller bit drilling was adopted, and is being successfully utilised despite high wear rates due to the broken angular quartz fragments. Previous drilling in the district has not reported such conditions, and it is uncertain where the base of these decomposed rocks will be, as they have possibly resulted from hot solutions moving upward from depth, and not weathering. The company now has 285 metres of larger diameter drill rods suitable for casing the hole on site, and aims to reach that depth or prior hard bedrock using the roller bit before setting these drill rods as casing and recommencing coring. Chitradurga Iron Ore, India The Company has engaged a consultant to prepare an independent expert AusIMM Valmin Code assessment and valuation report covering its iron ore project interest and entitlements in Karnataka, India. The scope of work is to complete the report based on a visit to the site and the examination of materials and information made available, and on iron ore industry information otherwise available. The visit will be conducted over the coming week, and the report finalised in early July. The information in this report that relates to mineral exploration or mineral resources is based on information compiled by Peter John Kennewell, who is a corporate member of the Australasian Institute of Mining and Metallurgy included in a list promulgated by the ASX from time to time. Peter John Kennewell is a full time employee of Cluff Resources Pacific NL and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a competent person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Identified Mineral Resources, and Ore Reserves”. Peter John Kennewell consents to the inclusion in this report of the matters based on his information in the form and context in which it appears. For further information please contact: Scott Enderby : Phone: (02) 9482 4655 Fax: (02) 9482 4987 Email: [email protected] Or Peter Kennewell on (02) 9482 4655. Yours sincerely, Peter Kennewell Managing Director
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