valuation

GCR Valuation -- June 2007.


1.Copper Hill.

GCR continues to take its 100% owned Copper Hill project forward, with mining and financial studies in progress. Latest ASX announcement 31 May 2007.
The MD is giving a talk on Copper Hill titled Copper Hill -- The Way Forward at the 2007 NSW Mineral Exploration and Investment conference in August.

Copper Hill contains 439,000 tonnes of copper and 1.28 million ounces of gold.
At $US7000 per tonne copper and $US650 gold per ounce, in ground value of;
$US3.073 billion for copper and $US832 million for gold, making a total of $US3.905 billion. Assuming a conservative 5% profit on this amount we get $US195 million.

$US195 Million.


2.Kempfield.

In GCR's 1999 Annual report Kempfield was reported to contain 39.1 million ounces of silver and 3.7 million tonnes of barite. Subsequent reports quoted a resource of 11.4 million ounces, 8.5 million ounces were in the measured and indicated categories.

Using 11.4 million ounces and a silver price of $US12 the in ground value of the silver is 136 million. Assuming a conservative 5% profit we get $US6.8 million.

Using 39.1 million ounces and a silver price of $US12 the in ground value of the silver is 469 million. Assuming a conservative 5% profit we get $US23.4 million.

$US6.8 million.


3.Mt Adrah.
A resource in the Hobbs Deposit contains a non-JORC 13 million tonnes at 1.3 g/t for 543,000 ounces gold. 2002 Annual report. Poor metallurgical recoveries have hampered the exploitation of this resource. At a gold price of $US650 the in ground value of this resource is $US352 million. I've assigned this resource a nominal value of $US3 obviously if the metallurgy can be sorted out it will
be worth much more.
Mt Adrah is now reported under the South Gilmore project, see website, however the difficult ,metallurgy is no longer mentioned. The 2003 annual report suggested
that bio-oxidation techniques could extract the gold however larger tonnages would be needed -- exploration had been carried out in the district to find further resources.


4.Cargo.
Resource of 3.7 million tonnes at 1.24 g/t gold for 147,000 ounces gold (non-JORC?). 1999 annual report. At a gold price of $US650 in ground value of $US95 million. Given a value of $US3 million. Also drill intersections of 212m at 0.35% copper and 0.16 g/t gold, 108m at 0.52% copper and 0.22 g/t gold, 187m at 0.43% copper and 0.23 g/t gold.


5.Wagga Tank.
Resource of 1.25 Mt at 0.66 g/t gold and 68.8 g/t silver and 0.81% copper and 1.76% lead and 3.3% zinc.


6.Yellow Mountain.
Resource of 4.4 Mt at 0.33% copper and 0.93% lead and 1.27% zinc and 25 g/t silver and 0.22 g/t gold (non-JORC). 2001 annual report. Best drill intersection of 111m at 0.4% copper 1.0% lead, 1.6% zinc and 25 g/t silver.


7.Breadalbane.
Drill intersections of 148m at 1.0 g/t gold and 142m at 0.9 g/t gold.

8.The list of other properties goes on including uranium, base metals, gold...
I've given these a nominal value of $3 million.


9.Total
So the valuation on the resources GCR owns comes to $US 210.8 million or in Australian dollars at the rate of $0.85 gives 248 million.

With 504,551,447 shares on issue this gives a conservative current valuation of 49c per share. If you used a 10% profit margin on the resources -- you can do the math.

10.Conclusion -- fair rough current valuation of 49c per share.