McArthur Basin JV

The Joint Venture covers 14 tenements held by Westgold (100%), via its subsidiary company Castile Resources Pty Ltd. The project area is located in the southern portion of the McArthur Basin which hosts one of the world’s largest zinc-lead deposits, the McArthur River (Zinc-Lead) Mine. This “world class” deposit with stated mineral resources of 157 Mt @ 11.3% Zn, 4.9% Pb and 49 g/t Ag (from Xstrata Annual Report, 2006) is the scale of target MMG and Westgold seek to discover in this highly prospective but relatively poorly explored region.

MMG to earn 60% equity in the tenements upon sole funding exploration expenditure of $3.0M over a four year period, subject to a minimum expenditure of $250,000 in the first 12 months.

MMG may elect to increase equity in the tenements to 80% by sole funding further exploration expenditure to the commencement of a Pre-Feasibility Study, subject to a further minimum expenditure of $2.0M to be completed during this stage.

Westgold to contribute pro-rata or dilute to a net smelter royalty thereafter. MMG to be manager of the Joint Venture.