GXL Australia initiated work in the Lachlan Fold Belt in 2002, applying the Geoinformatics Process over a vast amount of regional public domain geoscience data that was made available as a result of the Discovery 2000 and other initiatives by the NSW Government and Geoscience Australia. Initial targeting generated Targets at a scale of 1:1,000,000 for porphyry, orogenic gold and VHMS systems. Clancy as part of Geoinformatics, has explored for Ordovician porphyry gold-copper deposits in the Lachlan Fold Belt in NSW, Australia since 2003. Following the initial targeting, tenement acquisition commenced in May 2003 and was followed by fieldwork and the establishment of a field office in Orange, NSW in July 2004. Over the next year work focused on acquiring, processing, interpreting and integrating higher resolution data, sufficient for targeting at scales of 1:100,000 to 1:250,000.

This work included open-file data assessment and compilation, re-processing and interpretation of regional magnetic, gravity and radiometric datasets, integration of recently published detailed geology, lithogeochemistry and geochronology and detailed deposit case studies. Landholder negotiations, rock chip sampling, mapping and prospect definition continued throughout this period. This work significantly improved Clancy's knowledge and understanding of the fundamental geological controls for porphyry copper-gold systems in the Lachlan Fold Belt.

Probabilistic targeting for Ordovician porphyry copper-gold systems utilizing the higher resolution datasets commenced in May 2005 and was completed in October of that year. The current tenement portfolio consists of 12 exploration licences and 4 exploration licence applications covering 1,643 km2 of Ordovician magmatic arc. Significantly, the targeting indicates that the geological environment within each tenement is prospective for porphyry copper-gold deposits.

Clancy's tenement portfolio in NSW is divided amongst 12 project areas. All projects are 100% owned by Clancy but only nine will be funded by proceeds of the Offer. The three remaining projects are governed by joint ventures between Clancy and Gold Fields.