Development

Historic Gold Production:The optimum grade in the 1880′s up to 1914 for the area is recorded as 34g/t gold recovered, not easy to achieve when the stamp battery system recovery of gold was as low as 50%.

High Production Gold Mines:A total of 31,500 ounces from 27,287t was recorded as produced from the major mines.

Several additional Gold Targets:A probable 5,000 to 6,000 ounces of gold came from the alluvial deposits formed in the drainages of the mines. At least two of the alluvial deposits were classified as having dredging potential.

Mt Browne Mine:Early gold mining occurred at Mt Browne, which was worked on three separate occasions initially as a gold mine but later also produced copper. It closed in 1975. Production records from this time show ore grades of 12.2% Cu, and 4.3g/t Au in 1907, and 8.4% Cu and 2.7g/t Au in 1972-73. Its last production was 1280t of ore at 8.44% copper and 5.0%g/t gold.

Illabo Mine:There is a known quartz-magnetite body with gold grades reported as 8 to 12g/t. From the underground workings this body is 9m x 91m horizontal by 61m deep, or approximately 140,000t. At an average gold grade of 10g/t, this known quartz-magnetite body is estimated to contain approximately 150,000t. The horizontal and vertical extent of this quartz-magnetite body has not been tested by ground surveys or drilling, but based on the known horizontal dimensions 9 x 91 m, it is estimated that there are 200,000t @10g/t Au of contained gold for each vertical 100m. Coincident with the Illabo Mine there is a magnetic anomaly.

Strong Anomaly Data:There is a coincident IP high chargeable zone an gravity anomaly. This has elevated copper soil geochemical values. The gravity data defined two targets in the area that were not tested. Both these have supporting IP or geochemical anomalies. Both these gravity highs will be tested.

Additional Research to Realise Tenement Potential:The Beacon Group of mines warrant a ground magnetic and soil survey to map continuations of the formations hosting the gold mineralisation. From these surveys drilling targets will be defined.

High grade gold structures

Quartz vein stockworks with coincident geochemistry and geophysical anomalies

Copper-Gold at Mt Browne

Up to 20 deposits of 50,000 to 100,000t @10g/t to 15g/t Gold within unexplored historic gold field (100-150 workings averaging 34g/t Gold).

Planned sampling, including drilling, to start in 2012.

Lodge Mining Lease applications and seek necessary environmental approvals by end 2011.