hole #27 confirms mineralisation at glen wills

Synergy Metals Ltd ABN 59 005 482 904 Suite 10 / 100 Hay Street Subiaco (Perth) Western Australia 6008 Telephone (61 8) 9381 2266 Facsimile (61 8) 9381 2425 ASX announcement 29 June 2005 ASX code: SML No of pages: 3 HOLE # 27 CONFIRMS MINERALISATION AT DEPTH AT GLEN WILLS. FURTHER HIGH-GRADE GOLD INTERSECTIONS ENCOUNTERED. Synergy advises that GWDH 027, the deepest hole drilled to date below the old Maude and Yellow Girl mine workings, has encountered mineralisation. Core from the hole has been submitted for assay and will be released upon completion. The Company views the result as highly significant with the drilling now demonstrating that the mineralisation, encountered over a wide spread area of the Project, also exists at depth. The hole, drilled to a depth of 401 metres, is the first drilled with the larger capacity diamond rig. Prior to the availability of this rig drilling at both the Glen Wills and Sunnyside Projects was restricted to around 220 metres. The new rig will continue with the programme of confirming depth continuity of the main mine structure at Maude and Yellow Girl. The two smaller diamond rigs will continue to operate at the Glen Wills and Sunnyside Projects. It is anticipated that some drilling delays may be experienced with the advent of winter conditions. “The ongoing drilling programme at both Projects continues to provide a consistent pattern of extremely encouraging high-grade drill intercepts.” Glen Wills: Drilling at the Maude and Yellow Girl has encountered further significant gold mineralisation in the most recently completed hole. GWDH030, designed to extend the known strike of the lode to the south, has returned the following: 0.9 metres at 36.39g/t Au. Including 0.5 metres at 76.50 g/t Au. GWDH029 was lost at a depth of 118.3 metres as a result of adverse hole deviation and subsequent drill string failure.
Sunnyside: Drill hole SSD017 designed to test below the old workings encountered in SSDH013 has demonstrated that a new style of mineralisation may have been discovered at Sunnyside. The results from this hole were released in a Special Announcement made to the ASX on 22 June 2005. The major intercept encountered in that hole is repeated herewith: 15.9 metres at 52.36 g/t Au. Holes SSDH015, SSDH016 and SSDH018 have now been completed. These holes were designed to further test the southern strike of the structure hosting the United Brothers Mine (SSDH001 & 002) An intersection of high-grade gold has been demonstrated in the results returned to date from SSDH015. That intersection is: 0.4 metres at 22.75 g/t Au. Minor gold results were returned from SSDH016. Assay results for SSDH018 have not yet been received. Peter G Jermyn Executive Chairman The geological information contained within this report was compiled by Mr Peter de Vries, a consulting geologist, on behalf of Synergy Metals Ltd and Australian Gold Mines NL. Mr de Vries is a member of the Australasian Institute of Mining and Metallurgy, and is competent and experienced in the activity being undertaken, and consents to the publishing of the information in this report in the form and context in which it appears.
Table 1: Significant intersections. Hole number Northing / Easting RL (AHD) Azimuth / Dip (grid) Depth of hole From – to, (metres) Interval, (metres) Assay, g/t Au Glen Wills Gold Project area: GWDH029 5920391 / 542357 975 257.5 / -76 118.3 Failed to reach target zone GWDH030 5920305 / 542305 938 270 / -77 211.9 197.8 – 198.8 200.6 – 200.9 203.8 – 204.7 Including 204.2 – 204.7 1.0 0.3 0.9 0.5 5.21 9.27 36.39 76.5 Sunnyside Gold Project area: SSDH015 5923415/ 543376 1260 258 / -53 156.2 133.2 – 133.6 0.4 22.75 SSDH016 5923415/ 543376 1260 290.5 / -50 173.3 68.6 – 69.9 1.3 0.38 SSDH017 5923415/ 543376 1260 090.5 / -65 217.7 167.0 -175.0 Including 167.0 – 167.7 190.2 – 206.1 Including 196.5 – 196.8 196.8 – 197.2 204.8 – 206.1 8.0 0.7 15.9 0.3 0.4 1.3 2.26 8.77 52.36 150.0 900.0 243.4 Notes: The intersections do not represent true width intersections. Half core splits were submitted based on geological interpretation for 50 gram Fire Assay Analysis. Where visible gold was observed the half core sections were submitted for Screen Fire Assay. All diamond drill holes are NTW size. Drill holes have not had collars surveyed.