SHALLOW BEDROCK DRILLING INTERSECTS HIGH GRADE GOLD UP TO 39g/t (1.25 oz/t), SILVER UP TO 350g/t (11.25 oz/t) AND TELLURIUM UP TO 730g/t
WILGAR IOCG TARGET COINCIDENT WITH GRAVITY HIGH
Aggregate result: 257m @ 3.58g/t Au (0.5g/t cutoff)
Aggregate result: 301m @ 67.80g/t Ag (2.18 oz/t) (31 g/t (1 oz) cutoff )
(full results included at end of report)
Unit 34, Brickworks Annex,19 Brolga Avenue, SOUTHPORT 4215
Phone: +617 5503 1955 Facsimile: +617 5503 0288
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MARKET RELEASE 25 May 2010

“In my 40 or so years of experience, many of which were involved with gold mining operations, I have not seen these types of initial high grade, shallow “top-soil” type results for gold or silver. These sorts of bedrock drilling programs normally deal in results based on a PPB (parts per billion) measure, yet we are generating results more suited to a PPM (parts per million) program. I have never before experienced mineralisation in Gold and Silver in “top-soils” so consistently in these proportions or at these high grades, which suggests this particular area may be the deteriorated, oxidised and/or weathered remains of something deeper, that outcrops as the “twin hills” at Wilgar. Significantly for me, the fact we get similar high grades in the soils as we do in the underlying bedrock, tells me the mineralisation has not travelled far, so is not simply the product of a long term supergene enrichment process.

A second Bedrock Drill Program has already been carried out and we await the assay results. At this stage we do not have enough information to confidently determine the likely extent of mineralisation at Wilgar, but given the proximity to a large gravity signature, and nature and style of exotic minerals found
to date, we believe Wilgar is likely to be part of a large IOCG system and as such, have not ruled out the possibility that Wilgar sits on the outer rim of a much larger Porphyry and/or mineralised breccia pipe.

There is no doubt these results have lifted the prominence of Wilgar which is not surprising as it has always been my opinion that something significant was waiting…hopefully not too much longer.

Due to the time frame constraints of only having two days to prepare the announcement, a more detailed report will be forthcoming. The next report will detail all of the previous drilling at Wilgar which will describe the widespread mineralisation in the area. This latest bedrock drill program is a another piece of the “puzzle” and was designed to follow up the holes that intersected high grade mineralisation at depth and to determine the extent of mineralisation to help determine trends and its possible association with previous drilling.