report out - looks good !!!, page-3

A successful drilling campaign at the Prominent Hill copper gold deposit has added 1million ounces of gold to the Resource inventory and significantly upgraded Resource confidence. The pre feasibility drill out of the deposit is now complete. Indicated and Inferred Resources at Prominent Hill now stand at 101Mt at 1.5% Cu and 0.55 g/t Au in the main Copper-Gold Breccia (cut off grade 0.5% Cu) and 21Mt at 1.2g/t gold in the Eastern Gold Zone (cut off grade 0.5g/t Au). The contained metal inventory for the Prominent Hill deposit now stands at 1.5 Mt copper and 2.6 Moz of gold, an addition of 1Moz over the previous Resource estimate. Of the 2.6 Moz, 1.8 Moz is hosted in the Copper-Gold Breccia and 0.8 Moz occurs in the adjacent Eastern Gold Zone. Resource confidence has increased, with 90% of the Copper-Gold Breccia now in the Indicated category. With limited further work a significant proportion of the current Indicated Resource is expected to be elevated to Measured category. The main Copper-Gold Breccia mineralisation remains open at depth below the deposit, at depth to the west and along its entire vertical extent to the south east. Drilling is currently underway to explore these extensions with recent results from the westerly extension including 33.6m at 3.5% Cu and 0.3 g/t Au. Resources have not yet been estimated for the Western Gold Zone due to insufficient drilling to date. Drilling is ongoing and the potential of this zone has been highlighted by recent intersections including, 27 metres at 3.8 g/t Au and 3 metres at 38.0 g/t Au Background The Prominent Hill project is located in the Gawler Craton in South Australia, about 650 kilometres north-west of Adelaide (Figure 1). Significant copper-gold mineralisation with similar characteristics to that at the Olympic Dam deposit was discovered at Prominent Hill by the Mt Woods Joint Venture in late 2001. Oxiana acquired 100% of the Prominent Hill Project in early 2005. A pre-feasibility study commenced in mid 2004 and is due for completion at the end of August 2005. Geology The Prominent Hill iron oxide copper gold (IOCG) deposit is located at the southern margin of the Proterozoic aged Mt Woods Inlier under approximately 100 metres of sedimentary cover. Copper-
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gold and gold only mineralisation hosted in a large hematite breccia complex has been defined over 1 kilometre of strike to a depth of 500 metres to date. Copper mineralisation within the breccia complex grades from a chalcopyrite dominant assemblage at depth, up through bornite-chalcopyrite to chalcocite in the upper parts of the system. Gold occurs co-incident with copper throughout the deposit and also as gold-only mineralisation hosted in veined sediments and siliceous hematite breccias enveloping the copper - gold mineralised breccias. Drilling Program The pre feasibility drill out of the deposit comprising 60,000 metres of infill and extension drilling at a nominal 50 by 50 metre pattern is now complete. The Prominent Hill deposit is now delineated by 94 diamond core holes (48,600m) and 73 RC drill holes (28,700m). Resource Base The Indicated and Inferred Resource estimated for the Prominent Hill deposit is tabled below according to JORC Code (2004) guidelines. Contained Metal Deposit Mineral Resource Category (JORC, 2004) Resources Mt Copper Grade (%) Gold Grade (g/t) Copper ‘000 tonnes Gold ‘000 ozs Copper -Gold (0.5% Cu cut-off) Indicated 90 1.5 0.54 1,319 1,571 Inferred 11 1.6 0.62 168 211 Total Ind +Inf 101 1.5 0.55 1,487 1,782 Eastern Gold (0.5g/t Au cut-off) Indicated 5 - 1.32 - 209 Inferred 16 - 1.17 - 610 Table 1 Prominent Hill Resource at 0.5% Cu and 0.5g/t Au * Total Ind + Inf 21 - 1.20 819 *Notes detailing the methodologies used to calculate the resource estimate and the relevant competent persons involved are attached. **Rounding may cause computational discrepancies. Significant figures do not imply precision Contained Metal Deposit Mineral Resource Category (JORC, 2004) Resources Mt Copper Grade (%) Gold Grade (g/t) Copper ‘000 tonnes Gold ‘000 ozs Copper-Gold (1% Cu cut-off) Indicated 62.2 1.8 0.57 1,101 1,144 Inferred 7.4 2.0 0.67 146 160 Total Ind+Inf 69.7 1.8 0.58 1,247 1,300 Eastern Gold (1g/t Au cut off) Indicated 2.9 - 1.72 - 160 Inferred 7.2 - 1.80 - 417 Total Ind+Inf 10.1 - 1.77 577 Table 2 Prominent Hill Resource at 1.0% Cu and1.0g/t Au * *Notes detailing the methodologies used to calculate the resource estimate and the relevant competent persons involved are attached. ** Rounding may cause computational discrepancies. Significant figures do not imply precision
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Owen L. Hegarty Managing Director Attachments: Figure 1 Prominent Hill location plan Prominent Hill Resource Statement FIGURE 1 PROMINENT HILL LOCATION MAP