DRILL RESULTS FROM MALBEC AND CAT’S WHISKERS PROSPECTSIn...

DRILL RESULTS FROM MALBEC AND CAT’S WHISKERS PROSPECTS

In September 2003, the Company completed a reconnaissance drilling program aimed at testing the
application of ground based gravity surveys as a means of identifying non-magnetic haematite
ironstone bodies similar to the Chariot deposit ironstone host.
On 16 September 2003, the Company announced the discovery of new, shallow ore grade intercepts
at its Malbec prospect located 1 km west of the Chariot mine.
This announcement reported that the intersection of 151n @ 7.83 g/t Au from 9 metres in RC drill
hole MARC 024 was based on assays of 3-Inetre composite samples. Gold assays for the individual
l-metre drill samples from this composite intersection have now been received, confirming and
upgrading the tenor of the composite intersection. Significant intersections from MARC 024 are as
follows;
4111 @ 13.7 g/t Au from 10 metres.
(including l m @ 51.4 g/t Au from 12 metres);
5111 @ 18.5 g/t Au from 18 metres.
(including l m @ 35.6 g/t Au from 19 metres)
Interpretation of this mineralisation suggest that the high grade zone remains to be drill tested east
and west of drill hole MARC 024. The Company now intends to quickly advance this work.
As part of the Company’s exploration strategy to evaluate and drill its portfolio of regional
exploration targets a 9 hole infill drill program has been completed at the Cat’s Whiskers prospect.
All gold assay results have now been received. The most significant intersection was from RC drill
hole CWRC 021 and follows;
7111 @ 16.2 g/t Au from 83 metres.
(including 3111 @ 34.6 g/t Au from 84 metres)
Based on this result and drilling by previous owners, the Company has formed the view that Cat’s
Whiskers has the potential to provide high-grade supplemental feed to the Warrego ore processing
plant.
- 2 -
Malbec Prospect
The Malbec pl-ospect is located 1 km west of Chruiot (Figure 1). Shallow 01-e grade minel-alisation has been
intel-sected duiing a 12 hole RC hilling p'-ogl-am.
Drill holes wel-e collared to test a non-magnetic, gravity feature intelpl-eted as a shallow il-onstone body that
was pl-eviously unidentified.
Available assay 1-esults wel-e announced on 16 September 2003. All assay results have now been 1-eceived,
including individual l-metre &ill samples. Significant &ill intersections are tabulated below;
Hole
No
MARC 009
MARC 01 0
MARC 01 1
MARC 01 7
MARC 023
MARC 024
MARC 025
Easting
(AMG) (AMG)
Northing
404138.62 7826650.24
404175.62 7826610.72
404176.88 7826665.85
404429.85 7826559.50
404156.45 7826612.08
404175.28 7826590.59
404196.19 7826612.25
Dip Azi Significant intercepts Interval Grade
from to (m) glt Au
-60 I 178 I 72 I 1 I 1.05 I
-60 I 178 I 23 I 24 I 1 I 1.19 I
I I 38 I 41 I 3 I 1.88 I
47 I 58 I 11 I 3.84 I
Incl. 52 53 1 9.77
Incl. 54 55 1 14.36
-60 I 178 I 105 I 110 I 5 I 3.48 I
49 50 1 10.95
-60 1 78 22 23 1 3.31
-60 I 178 I 14 I 4 I 13.72 I
-60 I 178 I 47 I 52 I 5 I 0.79 I
Figul-e 1 shows most of the &ill hole locations. Figul-e 2 shows a section thl-ough Malbec on line 404175
East as indicated on Figure 1. The il-onstone host was intel-ested in &ill holes MARC 023 and MARC 025,
which were hilled 20 metres east and west respectively of section 404175 (PI-eviously repolted as east and
from 22 metres in &-ill hole MARC 023.
west 1-espectively, of &ill hole MARC 024). The best intel-section in these holes was 1 metre at 3.3 g/t Au
The mineralisation remains open to the east and west of &ill hole MARC 024 and a significant stlike
extension remains to be &-ill tested with the objective of identifying a shallow open pit 1-esou-ce fo1- 1-apid
development.
The Company will now undeltake futher hilling at the Malbec pl-ospect, including step out holes east and
west of &ill hole MARC 024, to fully define the extent of Ininel-alisation. Subject to the gl-anting of
necessary access and envil-onmental appl-ovals and &ill iig availability, this hilling will commence as soon
as pl-acticable.
- 3 -
Cat’s Whiskers Prospect
The Cat’s Whiskers p1-ospect is located 6 km south east of Tennant Cl-eek. Cat’s Whiskers is a geological
target whel-e drilling by pl-evious owners identified the potential fo1- a high-gl-ade gold zone. The Company
views Cat’s Whiskers as a potential source of high-grade supplementary mill feed for the Waxego 01-e
p1-ocessing plant.
The Company has now completed a 1,012 metre 1-evel-se circulation infill drilling pl-ogram. Significant &ill
intel-sections are tabulated below;
This 1-ecent hilling has confirmed and upgl-aded the gold zone contained within the Cat’s Whiskers
ironstone. The high-grade gold minel-alisation is confined to the footwall position (Figul-e 3) and remains
open down plunge to the east.
Based on these and piior ownel- hilling 1-esults (Figul-e 3), Cat’s Whiskers has the potential to pl-ovide high-
grade supplemental feed to Wamego 01-e p1-ocessing plant. The Company intends to advance the evaluation of
this p1-ospect.
The technical components of this release have been compiled by Mr Steve Russell BSc (Hons), MAusIMM (Senior
Exploration Geologist) who is a full time employee of the Company and has over 9 years of experience in the field of
activity in which he is reporting.