Golden Terrace SouthDeposit; MiningFeasibility StudyThe resource...

Golden Terrace South

Deposit; Mining
Feasibility Study

The resource at the Golden Terrace
South deposit is estimated to
contain 68,000 ounces of gold (Indicated
Resource of 735,000 tonnes
@ 2.50g/t and an Inferred Resource
of 189,500 tonnes @ 1.68g/t for a total
of 925,000 tonnes @ 2.3g/t gold).
A summary of work completed
during the year is provided opposite;

Environmental;
Level 2 flora and fauna field studies were
completed by Autumn 2010.

Metallurgical;
Results were also received from sampling
of the metallurgical diamond hole (GTD007)
completed at the Golden Terrace South
deposit. Significant intercepts from single
metre assays including ***69 metres averaging
6.80g/t from 61m to 130m down hole and
nearer to the surface, 17 metres averaging
5.86g/t gold from 32m to 49m down hole
were received.***
Subsequent test work performed on a
30kg composite sample of the diamond core
coordinated by METS in Perth found no major
metallurgical issues.
Key findings were:
? Overall Recovery 94.4%
? Potentially up to 37% of gold may be
recovered via gravity circuit
? BWI (Bond work index) of 11.8, typical of
oxide gold material, no processing issues
? No viscosity or abrasion issues.

Geotechnical;
A total of seven (7) HQ3 diamond holes
were completed for a total of 617 metres to
aid open pit design. Consultants completed
geotechnical reviews and provided pit slope
design parameters for open pit optimisation.

Survey;
Topographical surveys were completed to be
used for infrastructure planning. The mining
lease boundary was also surveyed as per
Department of Minerals and Petroleum.

Hydrological;
Hydrology consultants completed on site
test work in 2010 which detailed dewatering
requirements and excess water disposal for
the proposed Golden Terrace South pit.

Resource:
Five holes for 638 metres of drilling were
completed at Golden Terrace South resource
to verify the resource model to aid detailed
mine planning. Intercepts from assaying of 5
metre composite samples returned down-hole
intervals of gold mineralisation including
65m @ 2.49g/t, including 5m @ 19.69g/t
and 48m @ 2.98g/t including 5m @ 12.18g/t
gold.
Single metre assays have correlated well for
the high grade zones as shown on the following
comparative table (see page 5).

Other;
Tender documentation and detailed
scheduling are to be completed upon
pit design.