Thursday, 20 April 2006 Ref: 606097 Company Announcements Office Australian Stock Exchange Limited Level 4 Exchange Centre 20 Bridge Street Sydney NSW 2000 DRILLING TO COMMENCE AT HIGH GRADE COPPER PROJECT The Directors of Halcyon Group Ltd (ASX: HCY) are pleased to announce that the Company will commence drilling next week at its newly acquired High Grade Copper Project located at Mount Pleasant. The initial 12 hole drill program is designed to confirm the mineralisation before proceeding to a systematic drill out to bring the deposit to JORC standard. Confirming the size and grade of the deposit would confirm potential to quickly develop a mining operation producing a high grade copper-silver-gold concentrate at the current record high prices. MOUNT PLEASANT COPPER PROJECT HIGHLIGHTS: • 1997 Non-JORC resource of 134,200 tonnes @ 4.32% Cu (~5,800 tonnes of Copper Metal) based on 49 percussion drill holes and 17 diamond drill holes for 4,600 metres of drilling. • Record Copper Prices around US$6,600/t or ~A$8,900/t (up 16% since acquisition). • In-situ ground value of ~A$56 Million with Gold & Silver credits. • Deposit is close to surface (<90 metres deep) and therefore amenable to open pit mining. • Well located near infrastructure, 32 kilometres northwest of Kalgoorlie. • Gold equivalent value is approx 15.5g/t (using commodity prices as of April 19, 2006). • Better drill intersections include: • 9.1m @ 19.69% Cu & 233g/t Silver which equates to 9.1m @ 70.5g/t Gold from 59.4 metres, • 4.6m @ 7.73% Cu & 75g/t Silver which equates to 4.6m @ 27.3g/t Gold from 51.8 metres and • 2.4m @ 10.88% Cu & 13g/t Silver which equates to 2.4m @ 36.3g/t Gold from 85.0 metres. For further details on the Mount Pleasant Copper Project please refer to the previous announcement released on April 6 2006. Kind regards HALCYON GROUP LIMITED Andrew Radonjic MANAGING DIRECTOR I nformation in this report pertaining to exploration results was compiled by Mr A Radonjic who is a Member of the Aus.I.M.M. with not less than 5 years experience in the relevant fields, and who consents to the report appearing in the form and context in which it appears. I nformation in this announcement pertaining to exploration results was compiled by Andrew Radonjic, the managing director of Halcyon, who is a Member of The Australasian Institute of Mining and Metallurgy. Greenstone Granitoids Sediments Fault / Shear LEGEND PERTH Kalgoorlie Western Australia Proterozoic Dyke KALGOORLIE Mount Pleasant Copper Project Aphrodite ~900,000oz Au Broad Arrow ~600,000oz Au Paddington Group > 4Moz Au Kanowna ~5Mozs Au Golden Mile ~54Mozs Au Kundana ~5Mozs Au Mt Pleasant ~3Mozs Au 0 10 KILOMETRES Project Regional Setting Nickel Deposit (with Nickel endowment) Gold Deposit (with Gold endowment) Scotia ~35,000t Ni Metal Bardoc Gold/Nickel Project HALCYON GROUP L IMITED 0 Scale GDA Zone 51 Laterite Acid Prophyry Interpreted Fault Zone of Shearing Pit / Shaft / Mine Tenement Boundary 121° 16' 00"E 121° 16' 30"E 30°30'30"S 30°30'00"S 250m BLACK FLAG FAULT Golden Buckle P24/3379 P24/3380 BLACK FLAG FAULT SPLAY BLACK FLAG FAULT SPLAY BLACK FLAG FAULT SPLAY MOUNT PLEASANT COPPER PROJECT Simplified Geology, Tenements and Targets 6 624 000mN 6 625 000mN 334 000mE New Mt. Pleasant Copper Mine Mineralised Body (Copper - Gold - Silver) 3.7m @ 5.33% Cu, 108g/t Ag 3m @ 2.26% Cu, 1g/t Ag, 3.66g/t Au 2.4m @ 10.88% Cu, 13g/t Ag 9.1m @ 19.69% Cu, 233g/t Ag 4.6m @ 7.73% Cu, 75g/t Ag 2.0m @ 6.55g/t Au 1.0m @ 15.2g/t Au GEOCAD (WA) Pty Ltd Path..halcyon\tulloch\mp_geol.dgn Apr 06 NOTE: Selected drillhole intercept shown, projected to surface (Cu - copper; Ag - silver; Au - gold) Old Mt. Pleasant Copper Mine (Mined 84.3t @ 7.6% Cu) Gabbro Altered Gabbro LEGEND Section 6 624 490mN Basalt Sediments, mafic and intermediate volcanics HALCYON GROUP L IMITED MOUNT PLEASANT COPPER PROJECT Copper Cross Section 6 624 490mN Gabbro Black Shale Basic Volcanics -50mRL -100mRL Surface -75mRL 0 25m Scale MPP123 MPD015 MPP 19A MPP 19B MPD 016 MPP 19C Quartz Porphyry Intermediate Volcanics 3.0m @ 3.3% Cu 101.6m 70.1m 83.8m 82.6m 89.9m 103.9m 7.6m @ 4.70% Cu, 79g/t Ag 3.7m @ 5.33% Cu, 108g/t Ag 6.1m @ 1.84% Cu, 37g/t Ag 1.8m @ 1.0% Cu, 27g/t Ag 334 200mE 334 250mE 334 300mE
HCY Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
