some observations from the announcement

25 January 2008


Nice little announcement. Here are my observations:

• Possible Northern extensions of Salt Creek.
o Interesting statement. All the drilling was being done to the South East and now we have a possible extension to the North.

• Three discoveries within a 1km radius of Salt Creek. Salt Creek Northern extensions, Salt Creek South, Mohegan and Lucky Bay North.

• Initial assays coming from Mohegan with two rigs drilling away. Similarities to Salt Creek. Two rigs, lots of results to come.

• $16m dollars for drilling this calendar year.

• Now targeting 2.0 to 2.2m oz’s. It was only a few weeks ago we were targeting 2.0m oz’s and after making three local discoveries around Salt Creek they have already bumped that up by 200k oz’s. Now that’s confidence.

• Salt Creek South, 800m gold in aircore anomaly. That’s twice the size of the initial Salt Creek discovery.

o Interesting about the quartz gravels at basement. Seems to be the same as what is being reported at Reddale. If Reddale results show anything like Salt Creek, we could be sitting on a rather large geological feature that spans from 1km south of Salt Creek ( Salt Creek South ) to Reddale 3 - 4 kilometres to the North of Salt Creek. That makes 4-5 kilometres of highly prospective soil. Let’s wait to see what they find and if they head out West or East.
o Maybe it’s part of the same system. None of these sections have been tested at depth let alone RC drill tested.
o Could we potentially be looking at a very large pit???
o They are calling it “significant gold mineralisation within transported cover”.

• Mohegan Prospect. Again 400 to 600 metres, bigger than the original Salt Creek anomaly.

o Geological similarities to Salt Creek, rock type and structural setting.
o Good thing about these results is that they are in bedrock and very shallow. From 8 metres.
o Two rigs sent to drill the crap out of it. Hoping for a quick win here.

• Lucky Bay North. Looking for the bedrock source of the high grade zone of gold mineralisation. Sounds exciting, but which is hotter, the Salt Creek hits or Lucky Bay?

• Salt Creek Northern Extensions. Could be a gap of 250 metres and then Salt Creek could continue to the north east. Watch this space.

• Reddale. One of the diamond drill holes has hit altered and sulphide mineralised zone. Good news, even for the layman. Sulphides are good. The drill core is being assessed. Sounds to me like they are seriously interested in the geological signature of Reddale and therefore have the diamond drill rig there for this. Results will be a couple of weeks away. The real drilling ( with pre-collars to eliminate the quartz and water issue ) starts soon.

• Salt Creek Extensions. Currently 720 metres and now another 80 metres. 800 metres long thank you very much. Infill drilling already, they like what they see. Extensional drilling continues and that is a good sign as they still haven’t defined the size of Salt Creek.

I think the drill rigs will be humming. Results are due and will continue to be due for the foreseeable future. I am guessing 6-9 months similar to the last 6-9 months. Share price percentage wise too.

Gold is heading back into record territory again. Now at AUD$1,030. The valuations will keep heading north.

Regards

Kojasper