Central West Gold $$$ project

The Rothsay project is owned by CWG Central West Gold

It will be interesting to see what happens now!!!!!!!!!!!!!!
THIS IS A PRIORITY ITEM
30 May 2002
Part 1/1
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THUNDELARRA EXPLORATION LIMITED
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HOMEX - Perth
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Signs Agreements on Rothsay & Water Tank Gold Projects
The Directors of Thundelarra Exploration Ltd are pleased to announce
the signing of two important agreements concerning the Rothsay and
Water Tank gold projects. The Rothsay Agreement allows for the
immediate commencement of the scoping study into the mining of the
highgrade underground ore and subsequent processing at the Gullewa
gold plant located approximately 90 kilometres north west of Rothsay.
The Water Tank Agreement gives Thundelarra the opportunity to acquire
a 100% interest in a gold project with well defined drill targets in
the Norseman goldfield adjacent to Croesus Mining NL's Daisy and
Daisy South prospects. This goldfield has produced over 5.5 million
ounces since its discovery in 1894 and continues to produce new
significant highgrade gold discoveries.
The long awaited renewed interest in the gold market has given
Thundelarra the opportunity to re-assess the gold potential of its
100% owned projects and to look at new prospects particularly near
existing gold mining operations. The Rothsay joint venture and the
existing Warriedar and Davyhurst gold ventures are also very
important as they are capable of generating a cash flow for the
company in the short to medium term with limited funding required
from Thundelarra.
ROTHSAY PROJECT
Under the terms of the Rothsay Agreement, Menzies Gold Ltd (Menzies)
and Thundelarra will jointly fund exploration and metallurgical test
work to allow the completion of a scoping study to mine, truck and
process the highgrade underground ore (estimated cost $150,000) at
the Menzies owned and operated Gullewa gold plant. At the successful
completion of this study and when Thundelarra has earnt its 70%
equity in the project from Central West Gold NL, Menzies will then
have the right to earn 50% of Thundelarra's equity in the project by
completing a Final Feasibility Study by May 2003 and to commence
production by November 2003. Thundelarra's remaining 35% equity will
be free carried during the feasibility study and carried to
commencement of production. The carried expenditure will be refunded
from 70% of Thundelarra's cash inflow from the project.
The Rothsay project has an Indicated/Inferred Resource of 69,000
ounces of gold at an estimated grade of 11 g/t using a 7 g/t cut off
and a 1.2m minimum mining width. There is good potential to increase
this resource by further drilling both down dip and along strike (see
Rothsay Long Section).
Information in this report, insofar as it relates to resource
estimation and exploration activities, is based on information
compiled by Mr Brian Richardson who is a Corporate Members of the
Australasian Institute of Mining and Metallurgy and who have more
than ten years experience in the field of the activity being reported
on. This report accurately reflects the information compiled by these
members.