Summary of upcoming program as documented in the Fourth Quarter...

Summary of upcoming program as documented in the Fourth Quarter Report:

GOLDFINGER ANOMALY (Triako AngloGold Joint Venture)

The Goldfinger gravity anomaly is the most exciting target to result from the 2003 Falcon™ survey at Broken Hill. It is around three kilometres long and occurs in a structurally permissive area within confirmed Broken Hill Group rocks.

Initial shallow drilling in April 2004 returned strong indications of alteration and low order base metal anomalism with strong similarities to the Broken Hill orebody environment.
This work concluded that the main body of the source of the gravity anomaly was likely to be deeper than the initial drill holes and consequently a (500 metre) diamond drill hole has been designed to intersect the predicted location of the source of the anomaly.
After considerable delays in procuring a suitable rig, the hole is expected to commence in early August. Assay results from this hole should be returned by mid September.

YANCO GLEN (100% Gravity Capital)

Geological field reconnaissance has been completed and a drilling programme to test the Falcon™ target has been designed. The formal process of access and site clearance is in progress.

TARCOOLA

Final data for the recent Falcon™ survey were received during the quarter and a number of quality targets identified. These include the anticipated gravity and magnetic anomaly associations proximal to Hiltaba Suite granitoids which constitute "iron-oxide/copper-gold" targets, conventional iron ore targets and buried alluvial channels ("palaeochannels") which may have potential for sandstone hosted uranium or alluvial gold.

Reverse circulation drilling programmes over three targets - Ealbara, Wiltabbie and Ella - were completed in June. A total of 17 holes for 1,694 metres was completed and assay results are pending.

Arrangements for drill site access and heritage clearance for the numerous other targets resulting from the Falcon™ survey are in progress.

Four Eagles (Bendigo region)

(Gravity earning 50%)
During the quarter, Gravity announced a farmin agreement with Providence Gold and Minerals Pty Ltd covering EL 4525 which lies along strike and to the north of the main Bendigo Goldfield.

A Falcon™ survey over much of the EL was completed in May and preliminary results were received in June with the primary focus to delineate structural situations similar to those observed from regional gravity data in the Bendigo Goldfield.

The survey area comprises some 400 square kilometres of cleared farmland where a thin veneer of sand and clay covers the Palaeozoic rocks which host the primary reef systems at Bendigo. The area is also likely to contain buried palaeochannels which have historically been a major source of alluvial gold production in the region. Palaeochannels have proven to be excellent targets for the Falcon™ system in a number of geological environments.

The preliminary results are highly encouraging and have identified the structures in the prospective geology under cover. Gravity is expecting delivery of final data very soon. Interpretation and targeting will take place immediately the data is received and drill testing of initial target areas may be possible within the September quarter.

Ellendale JV (50/50 JV with Kimberley Diamond Company, KDC managing)
Falcon™ Follow-up

During 2003, DMA, in joint venture with Kimberley Diamond Company, flew a Falcon™ gravity gradiometer survey that covered sections of the Ellendale lamproite field and its possible northern extension into the Fairfield Valley to the north. About 30 anomalies consistent with non-magnetic lamproite pipes and two targets considered likely to be palaeochannels were interpreted from this survey. Drill follow-up of nine of these anomalies was completed late in 2003 and two lamproite pipes were identified. The two palaeochannel targets were also drilled and gravels were recorded from both.

Unseasonable rains during May and June have caused a significant delay in testing of the remaining anomalies identified from the Falcon™ survey. Ground conditions have improved markedly over the last month and a drilling programme designed to test the remainder of the geophysical targets will commence in the first week of August.

Bulk testing of the two microdiamond-rich pipes previously reported from the area should commence during the coming quarter. It is anticipated that exploration pitting of the palaeochannels identified from the Falcon™ survey will also be undertaken at this time. This pitting will be used to define bulk sample sites.

August looms as a busy month.