Tasmania Mine

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Gold – Reserves and Resources Statement

Ross Humphries operating a remote loader on the 850E level

 Tasmania Mine

The Tasmania Mine produced over 70,000 ounces of gold in the 2008/2009 year, and generated a strong cashflow.

BCD Resources NL has a dedicated exploration strategy – to discover repeats of the high grade Tasmania Reef which will ultimately extend the life of the mine.

From September 1999, when the historic Tasmania gold mine reopened, to the 31st March 2010, 811,821 ounces of gold was produced from 2.09 million tonnes of milled ore at an average mined grade of 13.4 grams per tonne.

As of the end of 2009, the total resource (including reserves) was 1.456 million tonnes at 12.2 grams of gold per tonne (571,000 ounces of contained gold). Reserves of 923,000 tonnes at 9.6 grams of gold per tonne (285,000 ounces of contained gold) indicate a current mine life of three years.

Tasmania Mine Long Section

Underground diamond drilling of the Tasmania Reef to 300 vertical metres below the current resource aims to double the current mine life, and to date this drilling has demonstrated that the mineralisation continues with depth and westward. The deepest intercept recorded so far is J10 with 2.5 metres (downhole width) at 32.4 grams per tonne of gold. Recent drilling has identified a new Western Zone of high grade (18.9 g/t gold) resources, which has added another 66,000 ounces of gold to the previously quoted resources, and which is located not far below current mine workings. This zone contains the best drill result from the Tasmania Reef since 1983 -J26 with 11.4 metres (downhole width) at 46.7 grams per tonne of gold.

Western Stockwork Zone

A scoping study on mining a zone of previously unexploited stockwork gold mineralisation along the western edge of the Tasmania Reef has commenced. The best intersection to date is 22m at 7.7 grams per tonne of gold, which is open-ended in mineralisation. This indicated resource of 16,500 ounces of contained gold is open both above and below the current resource boundaries, and consequently has the potential to significantly increase reserves.

The safety and wellbeing of the people working at the mine is of the utmost importance to BCD Resources NL. The company uses remote mining techniques in the footwall drives of the western zone, continuously monitors ground stress levels during mining and has a ground support system which protects against all expected ground failure mechanisms. An independent peer review cited the mine’s geotechnical procedures as “best practice in Australia for rockburst risk management”.