CARRINGTON SOLD ?????

Virotec International Ld
06 November 2002

VIROTEC INTERNATIONAL LTD


6 November 2002



OPTION TO SELL MINING INTEREST



Virotec International Ltd (ASX/AIM: VTI) has reached agreement with Kanowna
Lights Limited (ASX: KLS) regarding an option to acquire Virotec's Mt Carrington
Gold/ Silver project located at Drake in New South Wales, Australia.



The agreement is subject to several conditions. In the event that KLS exercises
the option to acquire the project (which expires on 15 March 2004), Virotec will
be issued with securities equivalent to 19.9% of KLS's shares and options on
issue following the acquisition.



The signing of this agreement is consistent with Virotec's stated intention to
reduce its direct interest in its mining assets, as the activities no longer fit
within its core business, by way of joint venture arrangements or sale and
retention of an indirect interest in the assets. Virotec is also in the process
of reducing its interests in mining leases in the Mt Garnet, Leichhardt Creek
and Gowrie Creek areas in North Queensland by sale and/or relinquishment.



The detailed announcement (without attachments) released by KLS follows. For
further information please contact Angus Craig, Company Secretary on +617 5530
8014.









Angus Craig

Company Secretary

Virotec International Ltd





VIROTEC INTERNATIONAL LTD

ABN 81 004 801 398

PO Box 188 Sanctuary Cove QLD 4212

Australia


www.virotec.com










Kanowna Lights
l i m i t e d
A C N 062 409 303





MOUNT CARRINGTON GOLD/SILVER PROJECT





Kanowna Lights Limited ('KLS') advises that it has entered into an agreement ('
Agreement') with Virotec International Limited ('Virotec') whereby it has the
option to acquire Virotec's 100% owned Mt Carrington Gold/Silver Project ('Mt
Carrington' or 'The Project').



Virotec has defined inferred precious metal resources containing approximately
280,000 ounces of gold and 10.3 million ounces of silver at Mt Carrington,
within a major epithermal style zone of polymetallic mineralisation. The
Agreement has been negotiated to provide for early development of the
structurally controlled higher-grade zones within the resource base, which may
ultimately provide the model for further regional exploration.



Under the terms of the Agreement, KLS will manage and solely fund a staged
feasibility study. At the completion of the feasibility study KLS may exercise
its option to acquire 100% of Mt Carrington by issuing to Virotec ordinary fully
paid shares equivalent to 19.9% of the issued capital of KLS with an equivalent
number of options.



The key points of the Agreement are:



1. Staged feasibility study to be completed before 15 March 2004, with the right
of withdrawal at any stage;
2. Feasibility study objective is to demonstrate viability of a minimum 200,000
ounce gold equivalent project over a 5 year mine life; and
3. KLS must raise approximately $1.0 million or demonstrate the financial
capacity to fund the feasibility study.

The Project

The Project area occupies 22 mining tenements (renewal approval pending)
covering the major known gold/silver/base metal deposits of the Drake Mineral
Field (see Table 1 & Map 1). These deposits have a history of exploration and
mining since 1886 when high-grade gold, silver and copper veins were first
discovered. Until 1980 mining was restricted to relatively small-scale,
high-grade operations.



Since 1960 several phases of exploration by larger companies have primarily
targeted bulk tonnage open pittable deposits to a maximum depth of 100 metres,
including a major silver exploration program and feasibility study during
1976-1984 by Aberfoyle, and the development of a short-lived 400,000 TPA open
cut gold operation in 1988 by Mt Carrington Mines Ltd (MCM). Both Aberfoyle and
MCM resource calculations were based on stratigraphic and structural
interpretations derived largely from vertical drilling and surface mapping. Very
few angled holes were drilled prior to 1990.



Subsequent exploration by CRAE during 1990-94 led to a significant
reinterpretation of the Mt Carrington stratigraphy with the recognition of
numerous intrusive units previously mapped as volcanic/sedimentary rocks. This
work has helped define structural controls over mineralisation not previously
considered by either Aberfoyle or Mt Carrington Mines.

It is now believed that gold/silver mineralisation at Mt Carrington is
concentrated in structurally controlled high-grade vertical to sub-vertical
shoots within favourable stratigraphic units, and earlier predominantly vertical
drilling was ineffective in exploring for these high-grade zones.



The recent work by Virotec in compiling and interpreting the extensive project
database indicates that there is potential for Mt Carrington to host economic
high-grade gold/silver deposits within a major polymetallic epithermal zone of
mineralisation. It also reviews earlier geological interpretation, resource
assessment and metallurgical and environmental considerations.



Past production records are incomplete but it is estimated that total production
to date is gold 1,026kg and silver 32,100kg. No historical base metal
production records have been sighted. A summary of the exploration and mining
history is presented in Table 2.

Project Resources

Virotec have defined separate inferred resources for gold and silver for the Mt
Carrington Project. The gold resource has been defined from 5 deposits and
totals 3.6Mt @ 2.44 g/t for 280,000 oz's. The silver resource is defined from a
further 4 deposits and totals 1.8Mt @ 178 g/t Ag for 10.3M oz's. No cut-off
grades have been applied to the inferred resource calculation.

Project Database

The Agreement requires Virotec to provide access to the comprehensive geological
database, which will be fully transferred to KLS upon acquisition of Mt
Carrington.

Project Infrastructure

Mt Carrington is located near the town of Drake approximately 270 km south west
of Brisbane and 45 km east of Tenterfield, on the Bruxner Highway in northern
New South Wales.



The Project is accessible from Brisbane and Grafton via bitumen road. Due to
previous mining operations significant infrastructure is in place including
roads, power supply, communications, administration, accommodation and storage
facilities, fresh water and tailings dams.

Environmental Considerations

Virotec has expended some $700,000 in environmental cleanup at the Project. This
work included treating the high acid content tailings dam with the BauxsolTM
technology and other activities.



Presently the majority of tenements at Mt Carrington are in the process of
renewal (Table 1). In accordance with the NSW Mining Act, Virotec has lodged a
draft Mining Operations Plan, and the Agreement specifically requires a review
of the tenements in Stage One.

Virotec International Limited

Virotec is at the cutting edge of environmental geochemistry and engineering.



Whilst Virotec is based in Queensland, it has extended its technologies and now
provides a range of products and services in Australia, New Zealand, Europe,
North America and Asia.



Proposed Transaction

The Agreement establishes a three-stage process for KLS to acquire 100% of the
Mt Carrington Project from Virotec.

• Stage One (Expiring 15 March 2003)

KLS will initially undertake various due diligence procedures, including a
review of the database, the status of the tenements (including an environmental
review), and determination of the scope of the proposed feasibility study.



Also during Stage One KLS will;

o Obtain any required shareholder approvals

o Seek to raise approximately $1.0 million or demonstrate financial
capacity to fund the feasibility study.

• Stage Two (Expiring 15 March 2004)

Stage Two requires the completion of a feasibility study which will have an
objective of demonstrating the viability of a 200,000 ounce gold equivalent
project over a 5 year mine life.



KLS will have the right to withdraw at any time should it form the opinion that
it is not feasible to raise the funds to develop and establish a mine at the
Project.

• Stage Three

On completion of the feasibility study (scheduled for 15 March 2004) KLS may
exercise its option to acquire 100% of the Mt Carrington Project by issuing to
Virotec ordinary fully paid shares equivalent to 19.9% of the issued capital of
KLS, with an equivalent number of options. The issue of shares and options will
be subject to shareholder approval.



The options will have an exercise price of 20 cents, will be exercisable within
two years of settlement and must comply with the ASX Listing Rules.



The Company will make an application to the ASX for a waiver of Listing Rule
6.18.

Capital Raising

To fund the Agreement and working capital requirements KLS intends to raise
approximately $1,000,000. Further details of which will be announced in due
course.



Further information may be obtained by contacting either Messrs John Barr or
Neil Biddle at the Company's offices'.



Yours faithfully

KANOWNA LIGHTS LIMITED









Thomas B Bannerman

Chairman



6 November 2002





So far as it relates to ore and mineralisation this report is based on
information compiled by Mr Neil Biddle a member of the Australasian Institute of
Mining and Metallurgy who has had more than five years experience in the field
of activity being reported on. This report accurately reflects the information
compiled by that member.





This information is provided by RNS
The company news service from the London Stock Exchange




Kanowna Lights
l i m i t e d
A C N 062 409 303





MOUNT CARRINGTON GOLD/SILVER PROJECT





Kanowna Lights Limited ('KLS') advises that it has entered into an agreement ('
Agreement') with Virotec International Limited ('Virotec') whereby it has the
option to acquire Virotec's 100% owned Mt Carrington Gold/Silver Project ('Mt
Carrington' or 'The Project').



Virotec has defined inferred precious metal resources containing approximately
280,000 ounces of gold and 10.3 million ounces of silver at Mt Carrington,
within a major epithermal style zone of polymetallic mineralisation. The
Agreement has been negotiated to provide for early development of the
structurally controlled higher-grade zones within the resource base, which may
ultimately provide the model for further regional exploration.



Under the terms of the Agreement, KLS will manage and solely fund a staged
feasibility study. At the completion of the feasibility study KLS may exercise
its option to acquire 100% of Mt Carrington by issuing to Virotec ordinary fully
paid shares equivalent to 19.9% of the issued capital of KLS with an equivalent
number of options.



The key points of the Agreement are:



1. Staged feasibility study to be completed before 15 March 2004, with the right
of withdrawal at any stage;
2. Feasibility study objective is to demonstrate viability of a minimum 200,000
ounce gold equivalent project over a 5 year mine life; and
3. KLS must raise approximately $1.0 million or demonstrate the financial
capacity to fund the feasibility study.

The Project

The Project area occupies 22 mining tenements (renewal approval pending)
covering the major known gold/silver/base metal deposits of the Drake Mineral
Field (see Table 1 & Map 1). These deposits have a history of exploration and
mining since 1886 when high-grade gold, silver and copper veins were first
discovered. Until 1980 mining was restricted to relatively small-scale,
high-grade operations.



Since 1960 several phases of exploration by larger companies have primarily
targeted bulk tonnage open pittable deposits to a maximum depth of 100 metres,
including a major silver exploration program and feasibility study during
1976-1984 by Aberfoyle, and the development of a short-lived 400,000 TPA open
cut gold operation in 1988 by Mt Carrington Mines Ltd (MCM). Both Aberfoyle and
MCM resource calculations were based on stratigraphic and structural
interpretations derived largely from vertical drilling and surface mapping. Very
few angled holes were drilled prior to 1990.



Subsequent exploration by CRAE during 1990-94 led to a significant
reinterpretation of the Mt Carrington stratigraphy with the recognition of
numerous intrusive units previously mapped as volcanic/sedimentary rocks. This
work has helped define structural controls over mineralisation not previously
considered by either Aberfoyle or Mt Carrington Mines.

It is now believed that gold/silver mineralisation at Mt Carrington is
concentrated in structurally controlled high-grade vertical to sub-vertical
shoots within favourable stratigraphic units, and earlier predominantly vertical
drilling was ineffective in exploring for these high-grade zones.



The recent work by Virotec in compiling and interpreting the extensive project
database indicates that there is potential for Mt Carrington to host economic
high-grade gold/silver deposits within a major polymetallic epithermal zone of
mineralisation. It also reviews earlier geological interpretation, resource
assessment and metallurgical and environmental considerations.



Past production records are incomplete but it is estimated that total production
to date is gold 1,026kg and silver 32,100kg. No historical base metal
production records have been sighted. A summary of the exploration and mining
history is presented in Table 2.

Project Resources

Virotec have defined separate inferred resources for gold and silver for the Mt
Carrington Project. The gold resource has been defined from 5 deposits and
totals 3.6Mt @ 2.44 g/t for 280,000 oz's. The silver resource is defined from a
further 4 deposits and totals 1.8Mt @ 178 g/t Ag for 10.3M oz's. No cut-off
grades have been applied to the inferred resource calculation.

Project Database

The Agreement requires Virotec to provide access to the comprehensive geological
database, which will be fully transferred to KLS upon acquisition of Mt
Carrington.

Project Infrastructure

Mt Carrington is located near the town of Drake approximately 270 km south west
of Brisbane and 45 km east of Tenterfield, on the Bruxner Highway in northern
New South Wales.



The Project is accessible from Brisbane and Grafton via bitumen road. Due to
previous mining operations significant infrastructure is in place including
roads, power supply, communications, administration, accommodation and storage
facilities, fresh water and tailings dams.

Environmental Considerations

Virotec has expended some $700,000 in environmental cleanup at the Project. This
work included treating the high acid content tailings dam with the BauxsolTM
technology and other activities.



Presently the majority of tenements at Mt Carrington are in the process of
renewal (Table 1). In accordance with the NSW Mining Act, Virotec has lodged a
draft Mining Operations Plan, and the Agreement specifically requires a review
of the tenements in Stage One.

Virotec International Limited

Virotec is at the cutting edge of environmental geochemistry and engineering.



Whilst Virotec is based in Queensland, it has extended its technologies and now
provides a range of products and services in Australia, New Zealand, Europe,
North America and Asia.



Proposed Transaction

The Agreement establishes a three-stage process for KLS to acquire 100% of the
Mt Carrington Project from Virotec.

• Stage One (Expiring 15 March 2003)

KLS will initially undertake various due diligence procedures, including a
review of the database, the status of the tenements (including an environmental
review), and determination of the scope of the proposed feasibility study.



Also during Stage One KLS will;

o Obtain any required shareholder approvals

o Seek to raise approximately $1.0 million or demonstrate financial
capacity to fund the feasibility study.

• Stage Two (Expiring 15 March 2004)

Stage Two requires the completion of a feasibility study which will have an
objective of demonstrating the viability of a 200,000 ounce gold equivalent
project over a 5 year mine life.



KLS will have the right to withdraw at any time should it form the opinion that
it is not feasible to raise the funds to develop and establish a mine at the
Project.

• Stage Three

On completion of the feasibility study (scheduled for 15 March 2004) KLS may
exercise its option to acquire 100% of the Mt Carrington Project by issuing to
Virotec ordinary fully paid shares equivalent to 19.9% of the issued capital of
KLS, with an equivalent number of options. The issue of shares and options will
be subject to shareholder approval.



The options will have an exercise price of 20 cents, will be exercisable within
two years of settlement and must comply with the ASX Listing Rules.



The Company will make an application to the ASX for a waiver of Listing Rule
6.18.

Capital Raising

To fund the Agreement and working capital requirements KLS intends to raise
approximately $1,000,000. Further details of which will be announced in due
course.



Further information may be obtained by contacting either Messrs John Barr or
Neil Biddle at the Company's offices'.



Yours faithfully

KANOWNA LIGHTS LIMITED









Thomas B Bannerman

Chairman



6 November 2002





So far as it relates to ore and mineralisation this report is based on
information compiled by Mr Neil Biddle a member of the Australasian Institute of
Mining and Metallurgy who has had more than five years experience in the field
of activity being reported on. This report accurately reflects the information
compiled by that member.





This information is provided by RNS
The company news service from the London Stock Exchange