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On yesterdays close it looks like a breakout for Michelago prior to some good news









Extract from ASX report
16 April 2004
QUARTERLY ACTIVITIES REPORT TO 31 MARCH 2004
MAIN DEVELOPMENTS
Summary
Michelago made excellent progress during the quarter in achieving its goal of becoming
a major gold producer, explorer and mine operator in China.
In particular, theCompany has completed complex negotiations to purchase an 82% interest in the BioGold Facility, Shandong Province, which is now the subject of a shareholder’s meeting on 5 May 2004.


Proposed terms for the purchase of an 82% interest in the BioGold Facility have
been finalised and were released to the market on 5 April 2004. Subject to
shareholder approval and other conditions, completion of the transaction, which is
anticipated to occur in July quarter 2004, will result in Michelago achieving positive
cash flows from that time and a robust base to increase its expansion into China.
• Sino Foreign Joint Venture (SFJV) registration has been completed for the Guangxi
Exploration Project (Michelago 90% interest). Initial exploration undertaken on the
project during the quarter included geophysics and regional geochemistry and has
highlighted a number of exploration targets within the Jinya ML and the
surrounding EL’s.

• SFJV registration for the Jinya Gold Project, which contains an inferred resource of
approximately 650,000 oz gold, has been delayed as Michelago negotiates to increase
its interest in the project to approximately 80%.

• The Xinjiang Province Wholly Foreign Owned Enterprise (WFOE) contract has
been executed. Michelago holds a 100% interest in this 2,700 square km project.
Initial re-evaluation of existing data undertaken on the project during the quarter
has focussed the Company’s interest on three target areas.

• A diamond drill rig will mobilise to the Jinya site on 26 April and a comprehensive
exploration drilling programme will commence on the Company’s projects in May