drilling ahead of schedule mt carlton, page-2

ASX RELEASE
20 February 2006
DRILLING AHEAD OF SCHEDULE AT MT CARLTON
„h A drilling program of 3500 metres of reverse circulation percussion drilling
has commenced ahead of schedule at the Mt Carlton project, and will test
priority targets near the recent high grade silver intersection at Silver Hill,
and extensions to the high grade silver resource at Western Lodes.
With recent dry weather the company has been able to bring forward a program of
3500 metres of reverse circulation percussion (RC) drilling. Priority targets include
the Silver Hill prospect where a recently reported intersection (in hole HC05RC13) of
7m at 931g/t silver, 0.87g/t gold, and 1.4% copper, equivalent to 16.4 g/t gold, is
located on a 600m long east-west fault with a strong magnetic low. The exploration
program of 1400m drilling is underway.
At the Western Lodes area, the recent addition of new resources at a grade
equivalent to 3.5 g/t gold has significantly increased the value of the Mt Carlton
project (Table 1). A step out drill program of about 1000m will test beyond
substantial intersections at the east end of the system, and will include testing of a
silicified and mineralised ridge on the south side of the prospect.
A few select holes will be drilled on the main hill to test beyond recent intersections
which showed the mineralised zone continues down dip past an east-west dyke
zone. Holes will be sited east and west along strike from hole MC05RC66, which
intersected 8m @1.25g/t gold, 22g/t silver and 0.6% copper, equivalent to 3g/t gold.
Several holes will also be drilled on the Mt Carlton North prospect in an area where
soil samples previously reported up to 1 g/t gold. This area had significant drilling
with an open hole percussion rig in the 1980¡¦s. The new exploration holes will test
the validity of old holes and resolve the complex geology.
Table 1: Mt Carlton Project Resources ¡V January 2006
Tonnes Grade
g/t Au
Gold
Ounces
Grade
g/t Ag
Silver
Ounces
Grade
Ppm Cu
Copper
tonnes
Herbert Creek East
(previously reported)
351,000 2.17 24,500 4.2 47,000 n/a
Mt Carlton
(previously reported,
but excludingWestern
Lodes)
966,000 1.35 42,000 38 1,090,000 3450 3,400
Mt Carlton
Western Lodes
558,000 1.49 26,700 120 2,100,000 n/a
Total Resources 1,875,000 1.55 93,200 48 3,240,000 n/a 3,400
The company remains committed to exploration, and aims to continue to add low
cost ounces to the resource base.
SILVER MARKET UPDATE
The silver market continues to strengthen and out perform gold, with the price
reaching an 18 year high. In 2005 the silver price increased 30%, and has doubled
since mid 2003.
China is in a macro-economic cycle that may go on for years, and will continue to
drive the commodity sector. Demand for the last 15 years has been outstripping
supply by about 100 million ounces per year. Best studies in the world indicate that
only about 5 years stockpile supply remains at current production rates of about 550
million ounces per annum.
John Terpu
Managing Director
This report is based on and accurately reflects information compiled by Mr Peter Rea, BSc., Msc, MAIG, who
is a full time employee of the Company. Mr Rea has sufficient experience which is relevant to the style of
mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify
as a Competent Person as defined in the 2004 Edition of the ¡§Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves. Mr Peter Rea consents to the inclusion in the report of the
matters based on his information in the form and context in which it appears.