steiglitz -> ex rio chief geologist to drill

Steiglitz, Victoria

(Oroya earning 75%)

Steiglitz is located 35km from Geelong and is the

southernmost goldfield of the 80 million ounce

Bendigo-Ballarat gold province. Historical mining

produced a reported 122,700 ounces of gold at an

average grade of 24.5g/t gold, mainly from ‘slate-belt’

quartz reef structures similar to those mined

elsewhere in the province. There is some

documentary evidence that production was

considerably greater, with the United Albion and New

Mariners mines being the largest and most long-lived

producers.

Oroya signed an agreement with Dr Tim McConachy,

formerly Rio Tinto Exploration’s Chief Geologist in

Australia and principal of unlisted New Hanover

Exploration Pty Ltd, to explore the 32 km2 EL 4409.

Under the terms of the agreement, Oroya has

reimbursed New Hanover $10,000 expenses and has the option to earn a 75% interest in the EL 4409 by free-carrying New Hanover

to a Decision to Mine. To exercise the option Oroya must complete a reconnaissance campaign of approximately 1,300 metres of

drilling.

Of particular interest to Oroya is a geological feature known as the Hanover Fault. This fault zone can be traced for some 10km on

a north-easterly trend through the exploration licence area. Reports from historical mining on the Hanover Fault suggest that high

gold grades were associated with brecciation, shearing, quartz veining and sulphides, similar in style to the mineralisation

currently being mined by Perseverence Corporation Limited, 135 kilometres to the north on the Fosterville Fault and also

mineralisation at Nagambie and Heathcote.

Gold and sulphide mineralisation on these faults is thought to have occurred later than the Ordovician ‘slate-belt’ mineralising

events, associated with Mid-Devonian regional deformation compression.

The late nineteenth century miners did not have the technology to fully understand the nature of the Hanover Fault mineralisation

although geologists of the time commented on the unusual nature of the mineralisation, which has a pronounced antimony

association.

Recent soil and rock chip sampling has confirmed the prospectivity of the Hanover Fault. The target has never been tested by

drilling; indeed no modern exploration drilling at all has been conducted at Steiglitz.

Oroya plans to undertake a reconnaissance drilling program in accordance with the acquisition agreement and also proposes to

test the Fault Zone over several kilometres with a dipole-dipole Induced Polarisation (IP) survey.

ANNUAL REPORT 2005 5











Club Terrace, Victoria

In September 2005 Oroya applied for an exploration licence covering volcanogenic base metal and precious metal deposits located

within the Devonian Boulder Flat Syncline and Ordovician gold mineralisation at the historical Club Terrace and Poddy Creek

Goldfields, and the Gippsland Boulder Gold Mine on Bola Creek.

Exploration of the Boulder Flat Syncline in the 1970’s and 1980’s discovered important occurrences of volcanogenic zinc and leadrich

massive sulphide mineralisation associated with the regional-scale Combienbar Fault. Drilling reported numerous mineralised

intersections but no economic discoveries have been made to date.

The historic gold occurrences at Club Terrace and Poddy Creek have a spatial association and structural alignment with the Club

Terrace Fault and the eastern margin of the Bega Batholith which Oroya believes to be significant.

The small but productive Gippsland Boulder Gold Mine workings, with a reported production of 3,540 ounces of gold from 1,770

tons, are located in a separate structural zone to the east of the Boulder Flat Syncline within Oroya’s tenement application area.

The known mineralisation occurrences provide a basis for renewed interpretation and exploration of the Club Terrace and Boulder

Flat areas.

Mt Egerton-Gordon, Victoria

Oroya’s has an exploration licence covering part of the Mt Egerton–Gordon Goldfield near Melbourne, Victoria. The company is

also negotiating access to other tenements in the area.

The Mt Egerton-Gordon Goldfield has a very significant production history of over 500,000 ounces of gold, extending back to the

early 1850’s. Most of this was mined underground from high grade quartz reefs by impressively long lived operations during the

last three decades of the 19th Century.

Sand Dune & Fraser Range

Oroya holds a 10% free carried interest to bankable feasibility in the Sand Dune project located in the North-eastern Goldfields of

Western Australia.

The company holds four exploration licence applications in the Proterozoic Fraser Range Complex in the Eastern Goldfields, which

is prospective for precious and base metals. A small royalty is received from the quarrying of dimension stone at Fraser Range.

Mt Gibson South

Oroya holds two exploration licence applications covering prospective southern extensions of the regional scale structures and

greenstone lithologies hosting gold mineralisation at Mt Gibson. The recently reported discovery of high grade gold near Pithara

by Independence Group NL and of significant copper-gold mineralisation by Dominion Mining Limited near Wongan Hills, along the

interpreted south-western extensions of these structures, emphasises the prospectivity of Oroya’s ground holdings.

Bolgart

An exploration licence application at Bolgart covers deeply weathered ultramafics which previous exploration showed as being

prospective for nickel sulphide mineralisation. Historical gold mining and extensive gold anomalism also characterise the area.