iron ore koolan isalnd

Document 6-234860-E dated 20-Mar-2003 Progress Report

Part A (entered 25-Mar-2003 11:14 am)
AZTEC RESOURCES LIMITED 2003-03-20 ASX-SIGNAL-G

HOMEX - Perth

+++++++++++++++++++++++++
Aztec Resources Limited commissioned Micromine Consulting to
digitally capture the un-mined portion of the 1985 BHP geological
resource block model for the Koolan Island Main Pit ore body. The
data was sourced from eleven 12 metre flitch plans, showing the
geological resource as modelled by BHP from the 38 metre level to 82
metre level. The purpose was to determine the un-mined resource as
modelled by BHP Minerals below the existing pit down to the -82 metre
level.

The un-mined resource with 60% iron cut off grade is as follows:

7.5 Million tonnes @ 66.7% Fe, 3.3% SiO(2) and 0.6% Al(2)O(3)

It is not possible to classify this resource according to the JORC
Code as the methodologies, procedures and assumptions made by BHP
when the model was generated are unknown. Micromine is validating the
drilling data captured by Aztec and will use this, together with
information contained in various BHP reports, to generate a JORC Code
compliant resource model for the un-mined portion of the Main Pit ore
body.

The location of infrastructure on the hanging wall restricted BHP's
access to the majority of the un-mined resource. BHP's own drilling
confirms the Main Pit ore body continues down to at least the -170
metre level.

B R Matich
MANAGING DIRECTOR

Website: www.aztecresources.com.au
Email: [email protected]