Following on from my thoughts about Gondwana' s exploration...

Following on from my thoughts about Gondwana' s exploration program at the company's Corunna Downs Iron-Ore project announcement, I have put together some thoughts and observations on the companies gold exploration program which is being under taken this quarter at Parker Range in the Southern Cross region in Western Australia.

If we start at and look at Figure 3 (page 6) of friday's company announcement , Gondwana have a number of anomalous areas, Zeus is one of the highlights, and we can’t speculate on size until they are drilled in this quarter, but Zeus is well located, along strike from SBM’s latest big discovery at Hercules Bronco. The company reported that the anomalies are coherent over several soil sample lines and relate to known gold-productive areas. From the scale in figure 1 (page 2), Zeus looks to be only about 1 km to the North of Gondwana's Zeus gold target. Add in the large gold resource SBM has in the immediate vicinity with GVG, Yilgarn Star and Nevoria and Zues alone, has the potential to contain a large gold resource if the MMI anomalies are proven to have similar gold reserves as the surrounding SBM open pits. Speculative at this stage but it all looks pretty good to me. The Zeus drilling this quarter is for 1,500m with 25 drill holes to a maximum depth of 60m to 80m reflecting the potential for similar open pit mining to SBM. Drilling due to commence in August. Detailed Plan of Works already completed by Golder Associates.

Gondwana announced last Friday ( 11th July 08), that at the company's Parker Range project ( immediately to the South of Santa Barbara's extensive open pit and underground gold mines) in addition to the Zeus RC drilling , it has drilling campaigns programmed at McGowan's Find, Golden Rod, Centenary,Cheriton's Find, Buffalo-Spring Hill, Pathfinder- Antares and McIntosh starting in August which should bring an active release of announcements and results over the next few months through to Dec 08 and beyond.

The mmi program hasn't been completed yet and the announcement clearly stated that interpretation of MMI results is still in progress and further targets could be generated. The programme announced already will cost about $750,000 and complete the obligations under the alliance with Santa Barbara Mines. The good news is that Gondwana will either receive between 3 to 5 times the $3 MILLION spent by Gondwana if SBM decides to buy in, which will provide a cash injection to Gondwana's exploration program or if SBM don't buy in, once the $3m has been spent, this terminate SBM's involvement and means Gondwana has 100% interest. If SBM buy in to the Gondwana tenements, they will have to pay between $9m for 51% interest and $15m for a 60% interest ( based on $3m GDA spend). Either way, Gondwana wins. If the resource drilling proves up a large resource for Gondwana and SBM miss the boat, the value of the resource can attract a larger contribution from another company that buys in, i.e, the larger the resource value, the higher the buy in and the greater cash injection Gondwana receives.

The other drilling by Gondwana this quarter at Parker Range apart from the Zeus target are ( refer fig 3)..........

McGowan's Find and

Pathfinder- Antares and

Cheriton's Find, Up to 1,200m RC drilling, 20 holes @ 60m each starting at McGowan's Find and Antares

Golden Rod, 15 drill holes @ 60m each for 900m

Centenary, (refer page 5), Two RC holes for 150m @ 30m to 60m depth, , previous drilling result inc' 3m @167.26 g/t Au from 40m, open along strike and at depth

Buffalo-Spring Hill, (70% interest), effort to increase open pit resources ( refer 2nd para p 5) by up to 50% targeted with 1,250m of RC drilling to upgrade inferred resource of 400,000t @ 3.0 g/t Au (1.2million grams) to indicated status. ( 1 oz = 28.35grams, i.e, 42,328 oz at gross value @ US $900 oz ~ US $ 38m)

McIntosh, RC drilling referred to in the highlights (p1, 3rd dot point) but I couldn't find details of drilling proposed

On the Garran's prospect, (10km2), a MMI soil sampling infill program is planned in the third quarter.

Refer to the Gondwana exploration Update ( last Friday) for details of each drilling program.

Potential to also host nickel, base metals and iron ( will be interesting to see the results from the drilling)

Further MMI soil results due shortly.

SBM announced yesterday, a newly discovered high grade gold mineralisation at Jaccoletti, 1.5 km from Marvel Loch , ( Marvel Loch looks to be about 12km to the North of Gondwana's Zeus gold prospect) significant intersections include 54m @ 8.1 g/t from 243m, 21m @ 12.2 g/t from 317m and 18m @ 7.6 g/t from 244m. Jaccoletti is located approximately 1.5km from the Marvel Loch processing facility and the fully established infrastructure of the Southern Cross operations. Jaccoletti, which has a strike length of approximately 1.6 km, is located on a shear parallel to the Marvel Loch structure. Jaccoletti has been mined historically as both an open pit and an underground operation. Total historic production was approximately 90,000 ounces of gold from shallow depths. ( 90,000 ounces at today's prices is a gross value of about US $81m)

Just a few of my observations , please DYOR etc.