1st Floor, 47 Ord Street West Perth Western Australia 6005 Email: [email protected] Website: www.reeftonmining.com.au Tel: (61 8) 9322 7822 Fax: (61 8) 9322 7823 15 April 2005 Company Announcements Office Australian Stock Exchange Limited Level 4 Exchange Centre 20 Bridge Street SYDNEY NSW 2000 Dear Sir / Madam STATUS UPDATE ERONGO PROJECT, NAMIBIA HIGHLIGHTS • 1st Phase RC drilling completed totalling 19 holes on interpreted palaeochannel target. • Ground radiometrics and drilling is detailing the emerging picture of the palaeochannel system. • The drill holes have been logged with radiometrics and samples submitted for precious, base and rare metals and uranium. • Ten of the wide spaced holes contain anomalous readings of up to 73,000 counts per minute (cpm) over a metre width (TC 3/RC 7, from 1 metre depth). • Target A exists over granite outcrop and subcrop - 7% radiometric data is over 2 times background indicating an anomalous source of uranium in granite and not a palaeochannel target. • Target D - Ground radiometric returns a response up to 135,300 counts per minute - 38% of the radiometric data is 4 times background indicating a potential palaeochannel system with anomalous uranium. Erongo Project EPL’s 2805 – 2811 (100%) The Company has completed the planned 19-hole Reverse Circulation (RC) drilling programme (for a total of 693 metres) on the Hakskeen Target C at the Erongo Project in Central Namibia, Africa. The holes have determined the presence of a palaeochannel and have been logged with radiometrics. Samples have been submitted for preparation of 4 metre down hole composites and results of analysis for precious, base, and rare metals and uranium is awaited. Ground radiometric surveying has now been conducted over 1,500 metres at Target C, and 2,000 metres each at Targets D and A. The ground radiometric survey has tested a total of 13 lines. Each line was approximately 1,000 metre in length with 400 to 1,000 metre line spacing and 20 metre spacing of readings. As announced previously for Target C, the maximum radiometric response was 94,320 cpm and the data averages 26,465 cpm. Statistical analysis of Target C showed 44% of the data is greater than 2 times background (anomalous), and 5% is more than 5 times background (highly anomalous). The results are set out in the attached table and depicted on the attached diagram. For Target D, the maximum radiometric response was 135,300 cpm with an average of 33,880 cpm. Statistical analysis of Target D showed 43% of the data is greater than 2 times background (anomalous), and 38% is more than 4 times background (highly anomalous). This anomaly is interpreted to be a palaeochannel target to be tested for indicators of precious, base, and rare metals and uranium. At Target A, the maximum radiometric response was 60,600 cpm with a high average of 43,164 cpm. Statistical analysis of the radiometric data shows 7% is greater than 1.7 times background (anomalous). Target A exists over granite outcrop and subcrop indicating an anomalous uranium source in granite and not a potential palaeochannel target. No further work is planned on this granite target until the Company receives approval for inclusion of Nuclear Fuels in the Exclusive Prospecting Licences (EPL’s). Drilling results and analysis of the radiometric data is providing an emerging picture of the palaeochannel system at Target C as depicted on the diagram attached. Reefton Mining NL previously advised that the Ministry of Mines and Energy, Namibia (MME) provided the Company with clarification and written assurances that EPL’s covering the Erongo Project remain valid pending the determination of Renewal Applications by the MME. The MME has acknowledged delays to date and has assured the Company that they appreciate the importance and need for a timely outcome to this matter. The licences were approved for 3 years with the facility to renew twice for a period of two years each, subject to complying with the terms and conditions of the Licences and the Minerals Act (Namibia), 1992. The Company may then apply for the grant of Mining Licences. In addition, the Company has applied for the inclusion of Nuclear Fuels in the Exclusive Prospecting Licenses of the Erongo Project. Yours faithfully BS MOORE Enquiries to: Chairman Mr Simon Gilbert Chief Executive Officer Phone: +61 (0)8 9322 7822 Facsimile: +61 (0)8 9322 7823 This report accurately reflects information compiled by Mr G.R. Hemming, MAusIMM.,MAIG., a Director of Roscoria Pty Ltd, who has sufficient experience which is relevant to the style of mineralisation 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 ‘Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserve’. Mr Hemming consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
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