The Company is pleased to advise that the investigations to date involving ground magnetic and soil geochemical surveys, systematic rock chip sampling and mapping have isolated high grade gold mineralisation in the Stockyard Gully area within a 1000m x 100m prospective corridor.

Historical Information
Mineralisation is evident in part from development work at the Para Wirra and Stockyard Gully mines which were worked in the 1930’s. At Para Wirra a shaft was sunk to 38m with three lateral drives totalling 85m developed at the 15m, 22m and 38m levels. Underground sampling carried out in this period along the 3 levels identified an ore shoot 25m in strike length between 10m to 40m from surface and open at depth. Mineralisation was continuous assaying 7g/t to 35g/t Au over 1m to 1.5m widths. Several other shafts sunk immediately south in the Stockyard Gully Mine area intersected similar gold values over a length of 200m producing average grades of 12g/t gold over widths of 1.5m. Ore for treatment from both the Para Wirra and Stockyard Gully Mines was mainly derived from the drives, shafts and small declines that were developed and only very limited stoping was carried out, leaving most of the ore that was delineated still in place. Trial treatment of ore produced from those workings gave 283oz of gold from 780t of ore.

Present Exploration
The gold mineralisation is associated with copper and trace bismuth hosted in 1m to 2m wide zones of intensely sheared, quartz veined altered biotite gneiss. The main alteration is chlorite and magnetite. Structurally the mineralisation is controlled by a combination of shears trending 160° and cross cutting fractures that result in local breccias.

Composite surface rock chip sampling returned 1g/t to 25g/t Au over the more exposed 200m southern section of the prospective zone. To the north, where soil and laterite cover predominate, soil sampling revealed anomalous values ranging 5ppb Au to 14ppb Au. The orientation ground magnetic work clearly shows a magnetic response associated with the gold mineralisation and has outlined a target approximately 1,000m in length and 100m wide that requires follow up investigation.

Part of the Para Wirra/Stockyard Gully target zone is currently excluded from the joint venture tenement and an application has been lodged with the Mines Department to have the exemption lifted to enable the target to be explored as a whole. The joint venture partners are highly encouraged with the results of the initial investigations and further exploration is proposed once the exemption has been lifted. Details of the proposed work program will be announced once the exemption has been lifted and the work program is finalised with the Company’s joint venture partner, Eden Creek Pty Ltd. Work was also completed on EL2862, however, this area did not prove to be prospective and the tenement will be relinquished.

Pursuant to the joint venture with Eden Creek Pty Ltd the Company has an option to earn a further 35 % interest in EL2863 for expenditure of a further A$345,000 (C$310,500). The Company has until September 1, 2003 to exercise this option. However, the Company is currently in negotiations with Eden Creek to replace this arrangement with a staged earning arrangement, whereby the Company would still have a right to earn a 45 % interest but in several stages.