Ann: Auteco Receives Firm Commitments for A$30.4million Placement, page-68

“Historic PCGM Diamond Drilling”

“From 1934 to 1966 PCGM drilled over 3,000 surface and underground drill holes totallingover 150,000 metres. In addition to the drilling information there is another huge data set thatconsists of composite chip samples from underground workings including drifts, raises, crosscutsand stopes. Complete drill logs, drill cross sections, level plans showing chip samplelocations, longitudinal sections, and assay data are available for this work but not yetcompiled.”

“The cumulative results of these many years of sampling and analysis were used for day today mine planning and grade control. At mine closure the remaining un-mined sections thatcarried over into the final grade/tonnage estimates were based on this information.”“A major compilation exercise is required to convert the drilling and underground samplinginformation to a modern digital database.”

“Wolfden (Downie, 2000) compiled PCGM assay information from drill holes that intersecteda series of mineralized zones below the lowest development levels. Eight mined veins (VeinsNo. 1, 5, 9, 9B, 6, 7, 8 and 12) are open at depth. Table 10-2 summarizes most of the drilling below these levels.”


“The historic drilling demonstrates excellent potential for the continuation of high grade goldmineralization below the existing mine levels. There is also some indication that there may bea new style of mineralization, pyritic tuff with quartz stockwork or stringers, below the No. 7Vein in the No. 3 Shaft area. Three holes into this tuffaceous mineralization, 3-28-45, 3-28-54and 3-28-55A, indicate that wider zones similar to those in the iron formation hostedauriferous zones might be found there. Drill hole 3-28-54 with a 7.82 metre core lengthaveraging 11.33 g/t Au (uncut) and 10.15 g/t Au (cut) is particularly encouraging.”