The most recent annual report did not go into any depth on the...

The most recent annual report did not go into any depth on the suject of gold projects, hopefully the half yearly report dose. It will be interesting to see....

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HALF-YEARLY REPORT
31 DECEMBER 2010

Gold projects:

Drilling was carried out and good results were received at Mt Freda and the Gilded Rose mines during the period and have resulted in a maiden inferred resource at Mt Freda of 89,000 ounces of gold at a head grade of 1.7g/t at a cut-off grade 0.5 g/t Au. The Gilded Rose drilling returned good results and an imminent resource is expected to be announced.

An economic assessment is to commence at the Mt Freda gold mine and the Gilded Rose gold mine. The Mt Freda gold mine drilling and economic assessment will assist in the evaluation for the recommencement of gold production. The company is seeking a joint venture partner and/or an IPO to facilitate the mining, development and production of gold at these sites. Both sites have significant operational and infrastructure aspects in place from previous mining operations and at the Gilded Rose, a high grade plant is on care and maintenance. Mt Freda can be supported by the Gilded Rose gold mine plant and infrastructure and other QMC gold leases within the area

The company’s focus in the forthcoming year is the development of its White Range Project Area containing substantial copper with credits of gold and cobalt as well as stand-alone gold projects. The company’s immediate aim is to develop the various mine resources for early cash flow through joint ventures and third party processing.