We're screwed14 November 2007Companies Announcement OfficeASX...

We're screwed

14 November 2007
Companies Announcement Office
ASX Limited
20 Bridge St.
Sydney NSW 2000
Technical Success at the Peak Hill Gold Project
The final results of a geochemical and drilling program at the Peak Hill Gold Project (Greater Pacific Gold (GPN) and Aurium Resources Limited (AGU) JV) has presented the Company with a mixed result. The program was a technical success in identifying the prospective contact zone, but only small low tenor gold mineralisation was identified.
The contact of the Naracoota Formation with the overlying Horseshoe Formation was seen to offer a good series of targets. To this end the strategy was to drill a series of stratigraphic holes to fresh rock and follow this up to see if low level geochemistry could identify these.
The success of these programs encouraged the Company to follow up with drill patterns across all anomalies. A total of 80 holes for 4852m of shallow RC targeted low level geochemical and stratigraphic targets identified in the previous programs last year.
Several areas of multiple low level anomalous geochemical results have only given a small flat base of oxidation (BOX) anomaly in three neighbouring holes on the contact near Curly’s Bore. Best results were 2m of 0.15g/t in GRC 80 and 2m of 0.41 g/t in GRC 83. These holes were adjacent GRC 13 which had 3m of 0.11 g/t.
The anomalous areas adjacent the Trev’s Creek area near Fortnum showed good quartz veining with evidence of sulphides on the contact but these yielded no gold anomalism.
The prospective contact has been tested on a semi regional scale and has shown that there is mineralisation in the Curly’s Bore area in the North and the buried contact is traceable over the leases. The three lines of contact evidenced are the long Horseshoe Range zone and the shorter Saturn and Horseshoe Lights lines.
These areas will now be targeted by modern “worming” the available magnetics to see the intersection of these identified stratigraphic zones together with the possible structures. The magnetic signature of the Naracoota contact will stand out for identification of structure-stratigraphic intersections.
This will be done in preparation for a reappraisal of the data to date and the next phase of exploration. This will allow the Company to fully utilise the data discovered in the previous two drilling programs as well as all the historical data available.
D McInerney
Chairman