drilling results copper hill

GOLDEN CROSS RESOURCES LTD
ABN 65 063 075 178
22 Edgeworth David Ave
Hornsby NSW 2077
Phone (02) 9482 8833
Fax (02) 9482 8488
5 December 2006
Copper Hill - November Drilling Results
Drilling results were received for 13 holes during November.
Highlights
• Open Cut zone hole 238 returned 326m at 0.39% copper and 0.60 g/t gold, for
1.50 g/t gold equivalent, including 72m at 3.26 g/t gold equivalent, from surface;
• Saddle zone hole 242 returned 244m at 0.63% copper and 0.97 g/t gold, for
2.42 g/t gold equivalent, including 140m at 3.29 g/t gold equivalent, from 2m;
• Wattle Hill hole 249 returned 22m at 1.60% copper and 0.05 g/t gold, for
3.73 g/t gold equivalent; and
• Northeast Pit area hole 254 returned 30m at 0.45% copper and 0.36 g/t gold, for
1.40 g/t gold equivalent.
The above results confirm and extend known copper-gold mineralisation in the Open Cut
and Saddle zones, reveal a new supergene copper zone at Wattle Hill and confirm up-dip
extensions of deeper copper-gold mineralisation in the Northeast Pit area.
Ongoing Work
The current drilling program will be completed during January and will be followed, once all
assays have been received and validated, by updated resource estimates. These
estimates will use the data from the reported intersections from the newly discovered
zones at Copper Hill North.
New optimised pits will be designed and this data fed into the pre-feasibility study presently
underway. In-house financial modelling of the project continues to provide
encouragement.
An extensive Induced Polarisation (IP) geophysical survey, to cover 5.5 km of strike extent
along the prospective Copper Hill Intrusive Complex and the Larras Lea prospect, is
scheduled to commence during December.
Discussion of Drilling Results
Drilling results received for 13 holes during November are set out in the table below, with
locations shown on the attached map. Results are described below for each prospect area.
Open Cut
GCHR238 intersected large blocks of early mineralised tonalite known as cognate
xenoliths. These blocks contain high grade gold and copper in quartz-magnetite-sulphide
veining (e.g. the interval from 0-72m returned 0.61% copper and 1.86 g/t gold, for 3.26 g/t
gold equivalent). Beyond 72m the hole contains xenoliths of early mineralised blocks
within less mineralised tonalite, yielding average grades.
Saddle
GCHR242 was drilled near high grade hole GCHR064, announced to ASX on
13 December 2005, which returned 129.8m at 0.79% copper and 1.80 g/t gold, for
GOLDEN CROSS RESOURCES LTD
ABN 65 063 075 178
2
3.62 g/t gold equivalent. Hole 242 was collared 51m south of hole 64m and was drilled
towards the southwest, whereas hole 64 was drilled to the south. Hole 242 intersected
several zones of early mineralised tonalite, probably cognate xenoliths, with narrow postmineral
dykes (e.g. the interval from 2-142m returned 0.83% copper and 1.38 g/t gold, for
3.29 g/t gold equivalent. The remainder of hole 242 contains xenoliths of early mineralised
rock within later, less-mineralised tonalite, with average grades below 142m.
Copper Hill North
CHM21, originally drilled to 249m by MIM in 1995, was extended with a NQ diamond tail.
The CHM21 diamond tail was intended to assist in determining the orientation of the
mineralised zone in GCHR190, which returned 500m at 0.33% copper and 0.17 g/t gold,
forming a scissor with the portion of GCHR190 below 316m down-hole. The intercepts
from CHM21 reflect chalcopyrite-mineralisation in sheared tonalite from 282m, and quartzcalcite
and gypsum-veined tonalite from 354m. CHM21 confirmed a steep northeasterly
dip of the mineralised zone in GCHR190.
The intercepts in hole GCHR 227 indicate chalcopyrite zones with intervening post-mineral
dyke units. Ongoing geological interpretation suggests that post-mineral dykes are subparallel
to west-east section lines, which can result in exaggerated apparent dyke
thicknesses.
Wattle Hill
GCHR249 intersected a supergene chalcocite zone from 22m, which explains the high
copper grades in the 22-30m interval. The supergene zone is located on the margin of the
Wattle Hill leached cap.
GCHR247 and GCHR248 are weakly mineralised and are marginal to the main
mineralised centres. GCHR248 contains a post-mineral dyke from 16-52m.
GCHR250 intersected a post-mineral dyke for its entire length, confirmed by the low tenor
of the copper and gold results.
Boundary
GCHR251 intersected pyrite-chalcopyrite zones peripheral to the Boundary zone.
Southwest Pit
GCHR252 intersected disseminated pyrite-chalcopyrite zones in the southwestern portion
of the optimised open pit.
GCHR253 intersected sporadic disseminated pyrite-chalcopyrite (with trace sphalerite)
zones in the southwestern portion of the optimised open pit.
Northeast Pit
GCHR254 intersected sporadic quartz-sulphide veining and disseminated chalcopyrite,
possibly due to “inherited” grade from dismembered early mineralised tonalite. GCHR254
successfully tested the up-dip extent of a significant mineralized zone in Newcrest drillhole
NCH008.
Southeast Pit
GCHR255 intersected several copper-mineralised zones, associated with quartzmagnetite-
sulphide “M” veining (30-32m), together with disseminated chalcopyrite beyond
32m.
Drilling Continues.
GOLDEN CROSS RESOURCES LTD
ABN 65 063 075 178
3
* * * * * *
Golden Cross is a gold and base metals explorer holding most of its tenements in the
Lachlan Fold Belt of New South Wales. GCR is in the process of farming out or selling
some of these projects as all efforts are applied to take the Copper Hill project forward.
It is GCR’s intention to establish a low cost mining operation at Copper Hill with a mill and
plant capacity in the range of 5 to 10 million tonnes per annum producing, over its life, in
excess of 400,000 tonnes of copper and over 1,200,000 ounces of gold.
Note: Gold equivalebt = Gold (g/t) + (Copper (%) x 2.3). This was calculated at US$450 per ounce for gold
and US$1.80 per pound for copper. Current prices are over US$600 per ounce for gold, and over US$3.00 per
pound for copper.
The information in this report that relates to Exploration Results, Mineral Resources or
Ore Reserves is based on information compiled by Kim Stanton-Cook, who is a
member of the Australian Institute of Geoscientists, is a full-time employee of GCR,
and has sufficient experience relevant to the style of mineralisation and type of deposit
under consideration and to the activity 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”. Kim consents to the
inclusion in the report of the matters based on his information in the form and context
in which it appears.
CHM21
GCHR227
GCHR238
GCHR242
GCHR247
GCHR248
GCHR249
GCHR250
GCHR251
GCHR252
GCHR253
GCHR254
GCHR255
Copper Hill Project
Sep-Oct Drilling
Assays Received
0 100 200
metres
400
Author:
Office:
Projection: MGA Zone 55 (GDA 94)
Drawing:
Scale: 1:10000
Date:6/11/2006
Golden Cross Resources Ltd
Holes Reported
August 2006 Pit Outline
Copper Hill Drill Results, November 2006
Hole No MGA East
(m)
MGA Nth
(m)
Azimuth Dip From
(m)
Interval (m) Copper
(%)
Gold
(g/t)
Gold Eqv
(g/t)
Open Cut
GCHR238 674333 6341371 50 -60 0 326 0.39 0.60 1.50
incl. 0 72 0.61 1.86 3.26
incl. 18 38 0.95 3.01 5.20
incl. 20 8 1.99 5.90 10.48
incl. 58 14 0.47 0.85 1.93
incl. 122 16 0.45 0.21 1.25
incl. 160 166 0.37 0.29 1.14
incl. 162 22 0.47 0.56 1.64
incl. 208 12 0.56 0.47 1.76
incl. 248 4 1.16 0.51 3.18
incl. 300 6 0.44 0.38 1.39
incl. 312 14 0.30 0.31 1.00
Saddle
GCHR242 674695 6341259 230 -75 2 244 0.63 0.97 2.42
incl. 2 142 0.83 1.38 3.29
incl. 9 5 0.36 1.21 2.04
incl. 30 53 0.96 1.08 3.29
incl. 98 30 1.37 3.35 6.50
incl. 138 4 0.77 0.38 2.15
Copper Hill North
CHM21** 674221 6341721 230 -60 282 12 0.37 0.29 1.14
and 354 36 0.29 0.20 0.87
incl. 354 12 0.48 0.40 1.50
and 373 9 0.33 0.14 0.90
GCHR227 673957 6341549 50 -70 14 2 0.39 0.08 0.98
and 24 2 0.35 0.38 1.19
and 78 8 0.29 0.21 0.88
and 266 8 0.29 0.12 0.79
and 320 16 0.24 0.17 0.72
Wattle Hill
GCHR247 674931 6340727 50 -60 No significant results
GCHR248 674930 6340597 50 -60 No significant results
GCHR249 674995 6340522 230 -60 22 22 1.60 0.05 3.73
incl. 22 8 3.72 0.08 8.64
and 76 8 0.26 0.11 0.71
and 108 12 (EOH) 0.29 0.23 0.90
GCHR250 674741 6340591 50 -60 No significant results
Boundary
GCHR251 674908 6341277 50 -60 26 26 0.22 0.08 0.59
and 124 8 0.17 0.38 0.77
and 172 2 0.33 0.26 1.02
Southwest Pit
GCHR252 674651 6340872 50 -60 6 2 0.16 0.29 0.66
and 16 76 0.28 0.13 0.77
incl. 42 14 0.35 0.17 0.98
GCHR253 674560 6340921 50 -60 18 8 0.27 0.11 0.73
and 62 6 0.10 0.32 0.55
and 132 18 0.17 0.42 0.81
incl. 144 6 (EOH) 0.32 0.42 1.16
Northeast Pit
GCHR254 674564 6341443 230 -60 84 6 0.38 0.52 1.39
and 140 10 0.48 0.33 1.43
and 156 30 0.45 0.36 1.40
Southeast Pit
GCHR255 674947 6341109 50 -60 0 14 0.14 0.41 0.73
and 20 16 0.36 0.89 1.72
and 42 36 0.15 0.60 0.95
and 92 10 0.49 0.51 1.64
and 128 18 0.21 0.15 0.63
and 188 6 0.25 0.18 0.76
Notes:
• ** Hole CHM 21 involved deepening an old MIM drill hole by NQ diamond drilling, from 249.3m to 446.4m.
· EOH = end of hole.
· Drilling was generally by reverse circulation (RC) methods to 200m- 250m, followed by NQ diamond core drilling,
with the exception of holes 227 and 242, which were NQ core drilled from surface. Results are the weighted average
of analysis of half core or riffle-split RC samples.
• 0.2% copper or 0.2 g/t gold cut-off used to determine intervals; Includes internal dilution of up to 6m.
• * Au Eqv = Gold (g/t) + (Copper (%) x 2.3). This was calculated at US$450 per ounce for gold and US$1.80 per
pound for copper. Current prices are over US$600 per ounce for gold, and over US$3.00 per pound for copper.