platinum project!

Quarterly Report
For the Quarter Ended 31st March 2006
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HIGHLIGHTS
• Share placement to raise $3,000,000 for working capital completed.
• Company is very advanced in negotiating a Heads of Agreement on a Platinum Project covering a large area within the Bushveld Complex in South Africa.
• Exercised the Option Agreement to acquire 100% of Liberty Mining International which holds two gold projects in the Kingdom of Cambodia. GAU’s rock chip sampling to date has returned up to 88g/t and 68g/t gold from the two project areas, with anomalous copper – lead- zinc values in epithermal style quartz veins.
• As at 7 April 2006 a new Executive Director, Mr Richard Stanger, was appointed to the Board.
• Exploration office base set up in Phnom Penh, Cambodia.
• Completion of rock chip and soil geochemical sampling on the Banlung Gold Project in Cambodia.
• Commencement of soil geochemical sampling on the Oyadao Gold Project in Cambodia.
• Due diligence studies underway on a number of new projects in the South-East Asia Region and South Africa.
CORPORATE
Capital Raising
During the quarter, the Company finalised the share placement of 20,000,000 GAU shares to raise $3,000,000 for working capital.
The Company will be utilising the funds raised to further advance its exploration projects.
New Director Appointment
The Company is pleased to announce that Mr Richard Stanger has been appointed as an Executive Director of the Company.
Mr Stanger has over twenty five years business experience in a wide range of industries, with a significant emphasis on exploration and mining. Mr Stanger has been involved in most aspects of the mining industry from property acquisition, exploration, mining production, processing and corporate management. More recently Mr Stanger worked as the Senior Analyst – Asia Pacific for Proudfoot Consulting. Prior to joining Proudfoot, Mr Stanger was Director Asia-Pacific for the Jamieson Group of Companies.
The Board welcomes Mr Stanger and believes that the skills and experience he brings to the Company will add significant value.
Acquisition of Cambodian Gold Projects finalised
It was announced during the quarter that the Company exercised the Option Agreement with Liberty Mining International Pty Ltd (LMI) to acquire 100% of the company including its two Cambodian gold assets in the Ratanakiri Province of Cambodia (See Fig.1), for a consideration of six million GAU shares.
During the due diligence period, as part of the field reconnaissance survey, a number of rock chip samples were collected by GAU geologists from the mineral concessions. Results from this program have been extremely encouraging with the best assays to date of 88g/t and 68g/t gold from the two respective areas. Other assay results included epithermal style quartz veins containing 46g/t gold with 0.2% copper, 0.14% lead and 1.31% zinc.
The assay results and rock types noted during the sampling exercise would indicate that the projects are highly prospective for epithermal gold deposits possibly also carrying significant base metal credits.
There has been little modern exploration carried out in the country and the opportunity for significant discoveries is supported by these early reconnaissance results.
During the quarter GAU established an office in Phnom Penh to base its South-East Asian operations. The Company has registered as a business in The Kingdom of Cambodia and is now well placed to become a dynamic and active explorer in this region.
EXPLORATION UPDATE
Banlung Gold Project, Cambodia (GAU 100%)
During the quarter GAU mobilised two field reconnaissance teams to the Provincial capital of Banlung. A total of 576 geochemical soil samples and 30 rock chip samples were collected from the Banlung project area. During the collection of these samples, recent hard rock and alluvial gold mining activity was noted in a number of areas of the soil grid area. These areas showed evidence of gold and copper mineralization associated with quartz veining and sulphide alteration in surface spoil and outcrop.
Samples have been brought back to Perth for analysis. The samples are undergoing analysis for a large multi-element suite and results should become available in early May 2006.
Further geological mapping and rock chip sampling will be carried out to supplement the soil sampling program to help define targets.
Oyadao Gold Project, Cambodia
During the quarter, field crews were also mobilised to the Oyadao Project area to commence a first pass soil geochemical sampling program. This program will comprise 650 soil and 30 rock chip samples. This project area contains some of the more significant artisinal mining operations and mineralisation identified to date.
Further mapping and rock chip sampling will also be carried out at Oyadao to supplement the soil sampling programs and help define targets for follow-up.
Aerial photography and Landsat images are being acquired. Proposals for detailed airborne geophysical surveys are also being quoted and may be completed during the current quarter or in the December quarter following the rain season.
New Project Generation
The Company is currently assessing numerous project opportunities in the South-East Asian region and South Africa on a number of different commodities. Due diligence on a number of the projects should be completed during the June 2006 quarter.
Joe Cornelius BSc, MAustIMM, MAIG, SIA
Managing Director
The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves of the projects owned by Great Australian Resources Ltd is based on information compiled by Mr Joe Cornelius and Mr Don Horn, who are members of the Australasian Institute of Mining and Metallurgy and have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as Competent Persons as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr. Cornelius and Mr. Horn consent to the inclusion in the report of the matters based on his information in the form and context in which it appears.
28 April 2006
For further information please contact:
Great Australian Resources Limited Telephone: +61 8 9479 5745
13/28 Belmont Avenue Facsimile: +61 8 9479 6362
BELMONT WA 6104 Website: www.greataustralian.com.au
Email: [email protected]
Figure 1: Location of Banlung and Oyadao Projects in Cambodia