ann out on drilling, page-24

Agreed Yanlin - gold a strong market today and HAW have good near-surface ground with a lot of potential.

Anglo-Saxon (70%)

Indicated (open-pittable shallow oxide) 303,214 tonnes @ 2.57 g/t for 25,121 oz from non-JORC historic resource of 135,000 oz Dumps hold 14,000 oz and there are non-quantified near-surface high-grade deposits at Exile,Exile North & Coles. Initial target 60,000 open-pittable ounces but a lot more ounces are marginal at the current POG so even without further drilling could end up much larger.

Coffey Bore (100% + 80%)

Entire porphyry mineralised from near surface to 100m+ for at least 450m of strike. High probability of offset continuation to SW. Have had testwork for ages but say there will be something this month as to whether free-miling and heap leachable. Tend to hold on to positive news and then release without fanfare (can`t think why) so looks very profitable and even without extension at least 100,000 oz looks likely.


Edjudina (100% + 80%)

Exploration and development by Paget Gold Mining Company Limited in 1983 resulted in an estimated (non-JORC) remaining underground Proven and Probable Reserve (to 160 metres from surface) of 195,500 tonnes @ 12.4 g/t Au (75,000 oz Au).
This did not include the re-discovery of the historic gold lode with 2 metres @ 15.75 g/t Au announced from 36 metres in EDC00. With any luck the current comprehensive RC programme will give an open-pittable resource of 100,000 oz +.

Whiteheads (100%)

Most encouragingly results have delineated a substantial soft, supergene blanket of gold mineralisation immediately above the harder,gold mineralised bedrock to be the subject of follow-up RC drilling, so this also would start with an open pit. As part of the Western structure it is an interruption of Carrick`s ground and they will want it. Also strongly anomalous gold-in-soil results to the north of Whiteheads Dam - an area of historic mining.

Deep South (80%)

Hoping to define a near-surface resource in the central mineralisation for excavation while Saracen are (currently) working Deep South. Have spent a lot of effort on this but for me the wrong priority. Saracen will suit themselves but if it is eventually mined at depth there may be something in it.

So to summarise HAW look to have net to them at least 250,000 oz of profitable open-pittable gold at present and are highly geared to any increase in the price of gold which would bring many more near-surface ounces into profit. Bizarrely, the dire tie-up with LCY and the dead hand of NMDC mean that they are less attractive to an out-and-out gold bidder than if they didn`t own 40% of Mt.Bevan at all as at least 3 of these projects will have individual NPV`s greater than the current market cap.

We need to be told exactly what they have signed up for at Mt.Bevan in terms of exploration costs as the key to the sp of this Company at the moment is the extent of its`liability to contribute to the cost of unilateral (i.e.unapproved by HAW) drilling at Mt.Bevan. As such this is highly price-sensitive information that warrants disclosure.