Ann: Update on Sulphide-Gold Target Drilling Program, page-2

Early Conclusions from the Sulphide-Gold-in-Sediments Target Drilling Program to Date Early conclusions from the diamond drilling to date, the first ever deep drilling carried out in the Waranga Province, include:
• The IP chargeability highs are reflecting only anomalous concentrations of pyrite and other sulphides as no significant carbonaceous shale has been intersected in the drill holes. Elsewhere in Victoria, the presence of carbonaceous shale means that IP is not as conclusive;
• Stratigraphic, syngenetic-pyrite fossil beds in siltstones, such as at Cahill, can result in a distinctive massive IP chargeability high that commences immediately below the level of surface oxidation and continues strongly to the full depth of the IP survey; and
• Discrete IP chargeability highs, such as at the Nagambie Mine, Racecourse and Nagambie North, are likely to be representative of pyrite and other sulphides associated with quartz stockworking and brecciation in brittle sandstone units subjected to major folding and thrust faulting