Lake Mackay Project

The Lake Mackay Project covers a substantial region of previously unexplored Lander Group metasediments prospective for gold mineralisation. During 2006 the Company has targeted several prospective areas identified from previous surface sampling and scout drilling programs. Exploration activities have included systematic follow-up surface sampling and a program of some 12,500 metres of RAB and aircore drilling.  This program led to the discovery of a new gold prospect - Tekapo. 

The Tekapo Prospect comprises an outcropping gossanous ironstone which was discovered in 2005 from follow-up of nearby low level surface anomalies. Surface sampling of the ironstone in May 2006 returned encouraging rock chip and lag sample assays up to 3.1 g/t Au.

First pass aircore drilling beneath the gossan in August 2006 returned a highly significant intercept of 16 metres at 3.4 g/t Au from 29 metres associated with a strongly ferruginous clay with gossanous ironstone bands.

Significant Drill Assay Results - Tekapo Project

• Hole LMA 124 - 3m at 1.79g/t Au
• Hole LMA 124 - 2m at 2.01g/t Au
• Hole LMA 125 - 1m at 0.46g/t Au
• Hole LMA 131 - 4m at 0.34g/t Au
• Hole LMA 132 - 2m at 0.14g/t Au
• Hole LMA 133 - 16m at 3.42g/t Au

These first pass drilling results from the Tekapo Prospect represent a highly significant gold discovery given the remote location in this part of Central Australia which has previously not been subject to modern-day mineral exploration.

The 2006 Lake Mackay program also identified encouraging gold mineralisation at other target areas including the Ohau Prospect which returned an aircore drill intercept at bottom of hole of 2 metres at 0.45 g/t Au from 32 metres. The Company plans to undertake further exploration of the Lake Mackay Project in the 2007 field season, including follow-up drilling of the Tekapo discovery.