Gold Exploration

Reverse Circulation Drilling at the Lefroy Project

Tasmania

Lefroy Project

The exploration tenements of the Lefroy project, 40 kilometres from the Tasmania Mine, cover 108 square kilometres of the north-east Tasmanian gold province, including at least five known goldfields which historically produced more than 500,000 ounces of gold.

The Lefroy goldfield (EL35/2001) consists of a 5 kilometre long mineralised corridor, within which there are 30 known historically mined reefs. These quartz reefs are hosted in Ordovician aged sediments, similar in nature to the central Victorian gold deposits.

The Lefroy Tailings (16M/1991) are estimated to be 140,000 tonnes at 1.4 grams of gold per tonne (6,000 ounces of contained gold) and upon approval this material is expected to be treated at the Beaconsfield plant between August and December 2012.

The nearby Pinafore deposit (RL1/2011), has an inferred resource of 810,000 tonnes at 1.5 grams of gold per tonne (38,000 ounces of contained gold) to a depth of 100 metres, although at current gold prices it is not economically viable as a shallow open pit. A 13 hole programme of infill, angled reverse circulation drilling yielded results consistent with previous intersections and confirmed two parallel lodes of mineralisation. The best intersections were in PFRC002 with 18 metres at 1.3 grams per tonne of gold from 39 metres, PFRC003 with 3 metres at 3.4 grams per tonne of gold from 79 metres and PFRC009 with 5 metres at 2.7 grams per tonne of gold from 9m.

Soil sampling over the Lefroy goldfield delineated four prospects which were drilled at the beginning of 2009. Subeconomic gold mineralisation was intersected at all, with the best results being 28 metres at 0.4 grams of gold per tonne from a depth of 62 metres at the Digney prospect and 4 metres at 2.2 grams per tonne of gold from a depth of 56 metres at the Londonderry prospect.

The 66 square kilometres of tenements south-east of the Lefroy goldfield, around Golconda and Lisle, are currently under option to Tamar Gold Ltd. Soil sampling at Golconda (EL55/2008) in January 2011 identified a coherent gold-arsenic-silver anomaly at the Potoroo prospect.