Rover 1 is a major gold and copper rich ironstone system similar to past Tennant Creek mines with the current total resource comprising:

5.3Mt @ 6.3 g/t AuEq for a total of 1Moz gold equivalent ounces
including a high grade core of
2.4Mt @ 9.3 g/t AuEq for a total of 728,799 gold equivalent ounces

Importantly, the Rover 1 deposit resembles many of the past and exceptional gold mines of the Tennant Creek Goldfield located to the immediate north. The Tennant Creek Goldfield ranks as one of Australia’s top gold mining regions and the mines are well known for their exceptional high grade nature (7-56 g/t Au) and association with extensive copper, cobalt and bismuth. The Rover Field is considered to represent the south western geological extension of the Tennant Creek Goldfield.

The Rover 1 project was originally identified targeting an elongate magnetic bullseye feature with a long axis of approximately 900m. The magnetic ironstone intersected hosts strong high grade gold, copper, cobalt and bismuth mineralisation and remains open.

The majority of the resource is hosted in and adjacent the main Jupiter ironstone which has now been defined over 700m down plunge and remains open at depth. The current resource defines the mineralisation between approximately 300 to 600 vertical metres and strong gold and copper mineralisation now defined to 1100 metres depth, providing substantial potential to increase the existing resource and extend the proposed mining life.

A detailed scoping study (October 2010) was completed on only the existing resource and demonstrates the project is economically viable with production of a minimum 60,000 gold equivalent ounces per annum at a operating cash costs of $580 per ounce gold equivalent with an estimated capital cost of $101M. The initial conceptual mining scenario is focussed on an underground mine, accessing ore via a single decline with a standalone processing plant capable of 400,000 tonnes throughput per year. The company is confident the resource and annual production profile of the deposit will grow.

Detailed feasibility studies are well advanced with detailed metallurgical evaluation and environmental baseline studies currently underway. The company expects to commence develop of the decline access to the Rover 1 deposit within the next 12 months.
 

Rover 1: Longsection showing current resources and proposed decline development

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Updated 20.09.10