hartley's report

Hi,
the following was cut and pasted from FML website:

Second gold bearing system emerging at Lake Cowan

Focus Minerals Ltd (“Focus”, “FML”, “Company”) has identified a second

gold bearing system 3km east, and parallel to the Treasure Island

mineralised zone, Lake Cowan, located ~50km southeast of Kambalda, WA.

The new gold system has been discovered through aircore drilling over a

prominent N-NE fault structure evident on detailed airborne magnetics but

covered by lake sediments. The new gold zone represents a gold anomaly

(defined by >50ppb assays) defined over 1.2km in length, which remains

open along strike and at depth. Some of the latest assays include: 7m @

518ppb (0.5g/t Au) from 32m; 12m @ 229ppb from 8m; and 4m @ 265ppb

from 44m; which are considered highly anomalous to background. Though,

very much early days, a coherent zone of shallow mineralisation is emerging

with many holes terminating within mineralisation; further work is required.

Unseasonal rainfall over the region has hindered exploration with higher than

normal water levels on the lake surface causing some access issues;

conditions are improving with FML hopeful that final results from the

preliminary aircore drilling will become available in early CY2012. Over 84%

of the aircore holes drilled are awaiting assays. The next stage of planned

exploration involves infill aircore drilling to better define the gold

mineralisation, which will then be tested by diamond drilling.




More high-grade gold at „Blind Pew?; Palaeochannel to test

At the Blind Pew prospect, located at the southern end of Treasure Island,

Focus has identified gold in laminated quartz veins with recently completed

diamond drilling intersecting additional zones of narrow, high-grade (up to

24g/t Au) gold mineralisation. The quartz veins at this prospect are up to

15m thick and remain open along strike and at depth and can be traced over

a few hundred metres in length. More detailed exploration is planned,

including the application of ground based geophysics (sub audio magnetics).

Focus has also identified a palaeochannel system to the north of Treasure

Island. The system drains from the north and has the potential for alluvial

gold mineralisation (though untested). Preliminary land-based aircore drilling

is expected to commence in December 2011.

Integrating Crescent acquisition; retain Buy recommendation

In October 2011, Focus completed its off-market takeover of Laverton gold

producer Crescent Gold (CRE), for an 81.6% interest. The acquisition

provides a platform of production growth, while diversifying operations and

effectively doubling the Company?s resource base. The integration of the

Laverton operations has commenced with Focus concentrating on delivering

higher grade ore feeds to the Granny Smith mill (under an OPA) and

reducing costs. In the September quarter 2011, CRE produced 21.9Koz at

est. total cash costs of A$1440/oz, which was an improvement on the

previous quarter but still at the high-cost end for producers. With operational

improvements and ore grade increases cash costs are expected to be

lowered. FML?s Coolgardie operations contributed 21.9Koz at A$944/oz cash

operating costs (C1 costs plus royalties), for Group production of 35.6Koz.

The Treasure Island project remains an exciting early-stage exploration play

that has the potential to yield a number of significant-sized gold deposits. We

continue to recommend FML as Buy with a price target of 12cps.



DYOR
K