Explorer 108

Explorer 108 (Zn-Pb-Ag±Au-Cu) Prospects

At Explorer 108, results from the 2006 and 2007 drilling programmes provide strong evidence of a very large hydrothermal system with significant high-grade Zinc (“Zn”), Lead (“Pb”), Silver (“Ag”) ± Copper (“Cu”) and Gold (“Au”)  mineralisation.

The results of recent drilling have defined an extensive area of polymetallic base and precious metal  mineralisation to an area of at least 350 metres north-south by 200 metres east-west  and remains open to the north and south but is partially closed off to the east and west by an un-mineralised felsic porphyry unit. The mineralisation is also still open at depth. The mineralisation is hosted in a 200 to 300 metre thick hydrothermal alteration zone consisting of brecciated carbonates (dolomite) and sheared acid volcanics. Zinc is generally the dominant metal through out the system, where the zinc to lead ratio averages 2 to 1.

The mineralisation consists of broad (100m+) intervals grading 2 to 5% combined Zn and Pb, but importantly contains a number of high-grade lenses containing grades of 7 to 15% combined Zn and Pb.  The most significant of these high-grade lenses occurs at the contact of an upper dolomite sequence and the underlying acid volcanics (Figure 2). This basal dolomite contact reveals a shallow easterly dip and has been traced laterally over the northern two thirds of the known alteration system. The high-grade lenses typically are 30 to 60 metres thick with average grades of 7% - 10% combined Zn and Pb.  Further, they generally contain a high-grade core of 5 to 20m thickness grading 12 to 15% combined Zn and Pb.

A second style of high-grade Zn + Pb mineralisation occurs below the high-grade lense at the base of the dolomite and within a sequence of sheared acid volcanic.. These volcanic hosted zones typically occur within steeply dipping shear zones which range in thickness from several metres up to 30 metres with average grades from 7% to 15% combined Zn and Pb.

In addition, copper mineralisation has been intersected in drilling above and below the zinc and lead mineralisation in a number of holes suggesting the Explorer 108 mineralisation may be part of a larger and zoned polymetallic ore system.

Significant results of diamond drilling are listed in Table 1.

During the second half of 2007 the Company will be drilling at Explorer 108 with primary aim of defining the overall extent and size of the mineralised system prior to commencing resource drilling.

 Table 2: Previous reported significant Zn-Pb-Ag  mineralisation at Explorer 108 for the Quarter

Explorer 108 - Drillhole Location Plan Showing extent of Zn + Pb mineralisation idendtified from drilling. 

Explorer 108 - Section 7795780N. Showing significant Zn + Pb results and the remobilised copper horizon in the cover sequence.

Gravity image showing Explorer 108 drilling and The Lump prospect

(Updated January 2008)