Gold in Western Australia

Ausminerals holds numerous Mining Leases, Prospecting Licences and applications in the Leonora and Laverton region of West Australia which are world class gold, cobalt and nickel mining districts. The Ausminerals Group has completed five drilling programmes in this region resulting in excellent Gold values and elevated nickel values.

Most of the exploration budget is targeted at this area because the company has already identified gold bearing deposits here and will now properly delineate them to JORC code reserves with a view to rapidly bringing them into production. Ausminerals has access to a gold extraction plant which requires some refurbishment, but is currently undertaking metallurgical studies on the gold ore to determine how to improve gold recovery, which on this plant would be approximately 70%. Initial results from the latest testwork indicate recoveries of 98% which greatly improves potential income and profits. Full results are expected in August 2008 resulting in final plant design.

The area is bounded by the Gold Hill mining lease which has previously reported a resource of 600,000 tons @ approximately 2.1 g/t au and where previous exploration has also outlined Nine (9) distinct ore bodies with reported gold grades from previous drilling from the different ore bodies of:-

• 2 metres @ 15.5 g/t,
• 1 metre @ 68 g/t,
• 1 metre @ 59 g/t,
• 8 metres @ 3.3 g/t,
• 2 metres @ 19.7 g/t,
• 15 metres @ 4.8 g/t and
• 12 metres @ 9.7 g/t.
  

The above ore bodies are in relatively close proximity to each other (within 2 kilometres).

An aggressive exploration and drilling program is planned to maximise the potential of an economic ore-body discovery.