Mount Carlton Gold-Silver-Copper Project

Resource Potential

Resources in the Silver Hill deposit has increased tonnes by 45% (7.2 mt), silver by 49% (15 moz), and gold by 38% (350,000 oz) when compared to the September 2007 resource estimate. This increase is equivalent to 650,000 ounces of gold.

Consultants Hellman & Schofield Pty Ltd estimate that the Silver Hill Deposit Indicated and Inferred Resources now total 23.1 million tonnes at 1.70 g/t gold, 61 g/t silver, and 0.29% copper, equivalent to 2.65 million ounces gold, using a $20 cut-off.


Mt Carlton Total Project Resources April 2008

  Tonnes Grade
g/t Au
Gold
Ounces
Grade
g/t Ag
Silver
Ounces
Grade
% Cu
Copper tonnes
Silver Hill Deposit 23,100,000 1.70 1,263,000 61 45,000,000 0.29 66,700
Mt Carlton 966,000 1.35 4,2000 38 1,090,000 0.345 3,400
Mt Carlton - Western Lodes 558,000 1.49 26,700 120 2,100,000 n/a 0
Herbert Creek East 351,000 2.17 24,500 4.2 47,000 n/a 0
Total Resources 25,000,000 1.70 1,350,000 60.3 48,200,000 0.28 70,000

Note: Mt Carlton Western Lodes Resource was estimated by sectional polygonal methods. Herbert Creek East and Mt Carlton were estimated by Kriging. Silver Hill Deposits were estimated using Multiple Indicator Kriging by Hellman & Scholfield.

 

Mt Carlton Project Resource Growth

 Tonnes January
2006
July
2006
March
2007
September
2007
April
2008
Golds Equivalent
GOLD 94,000 oz 308,000 oz 857,900 oz 1,024,800 oz 1,350,000 oz 1,350,000 oz
SILVER 3,200,000 oz 13,200,000 oz 20,967,000 oz 33,437,000 oz 48,200,000 oz 846,000 oz
COPPER 4,500 t 25,000 t 38,523 t 55,800 t 70,000 t 454,000 oz
          TOTAL 2,650,000 oz

Note: Calculated Gold Equivalent grade is based on 1 gram gold = 57 grams silver = 0.5% copper.

Hellman and Schofield has advised that a significant proportion of the Silver Hill resource is likely to be upgraded to Measured status in the near future, upon successful completion of normal QAQC (quality control) validation, which is in progress.