Myall JV

(NSW, Gold Fields 51%, Clancy 49%, Gold Fields earning 80%)

Myall (EL6913) is located 25km southwest of Narromine at the northern end of the Junee-Narromine Volcanic Belt of the Macquarie Arc. Myall covers most of the Narromine Igneous Complex which is prospective for Ordovician porphyry copper-gold deposits. Work completed in 2010 included diamond drilling at a number of prospects and regional aircore drilling. A total of 11,889m of drilling was completed at the Myall JV project in the year to 31 December 2010.

Nine diamond holes for a total of 3,239m (inclusive of aircore precollars) were completed at the Myall JV in 2010. A substantial diamond drilling program was undertaken at the Kingswood prospect where drilling tested the western margin of a granodiorite porphyry dyke where significant porphyry-style quartz veining, native copper and hydrothermal alteration associated with anomalous copper and molybdenum geochemistry was defined by aircore drilling. However, only low-grade copper mineralisation was intersected and the drilling has effectively tested the western expression of the Kingswood porphyry system.

Infill and regional aircore drilling continued in 2010 and remains in progress at the time of writing. The aim is to complete 500 x 500m drill coverage across the entire tenement area. A total of 76 aircore holes for 8,649m were completed in the year to 31 December 2010. A number of aircore holes have intersected attributes consistent with porphyry-style systems and one hole intersected alteration related to potential orogenic gold style mineralisation. The regional aircore program will continue into 2011 and further details will be provided when results are finalised.