New Liberty

The New Liberty deposit is located on an east-south-east trending, highly sheared and mylonitised schist-belt within which the zone of pyritisation, veining and alteration attains a confirmed strike length of at least two kilometres, over widths of up to 100 meters. An extensive area of intensive alluvial gold mining, known as Gold Camp, has been worked for many years at the eastern end of the deposit. The discovery of primary deposits up-stream subsequently led to the development of two major hard rock artisanal mining camps approximately 400m apart, at Larjor and Kinjor (ŒKing George'). The host structure can be traced on satellite imagery and airborne geophysical maps for several kilometres beyond the current workings

The results overall from the 2,000m 19 hole diamond drilling programme carried out in 1998/99 suggest that the gold mineralisation in the King George and Larjor sectors averages about 8m in true thickness at a grade of 6.4 g/t gold, over a combined strike length of approximately 650m. Furthermore, ongoing mapping and sampling in the vicinity of hole KGD-10 (50m @ 4.4 g/t gold), drilled 500m east of the King George sector in the East Zone, appear to be indicating that the zone of alteration may be widening in that direction. Both the King George and Larjor zones are some 400 metres long and the East Zone has to date been defined over some 225 metres and is open to the east and west. All three zones are open at depth. Geochemistry and artisanal activity suggest a possible fourth zone to the west of Larjor.

Follow-up drilling is under way, aimed at tracing extensions both east and west along strike and at depth.

The mineralisation is concentrated within sheared ultramafic komatiitic talc schists typical of Archaean greenstone belts elsewhere in the world. The shear zones are almost vertical and the sheared ultramafic rocks appear to be continuous throughout the known strike length of the mineralisation. Granite gneiss and amphibolite make up the hanging wall and foot wall respectively. Metallurgical tests of the mineralised sections carried out by Lakefield Research Limited indicate that the gold is free in form.

The outstanding feature of the New Liberty gold prospect is the scale of the artisanal workings - rarely seen in Archaean gold deposits. These workings are on a larger scale than those previously witnessed at what is now known as the 3 million ounce resource of the Resolute ex - Samax Gold "Golden Pride" mine in Tanzania. The dimensions and nature of the host lithology, strength of shearing, intensity of the hydrothermal alteration system and associated gold mineralisation, suggest that this prospect has all the hallmarks of a major gold deposit.

INTERSECTIONS OF GREATER THAN 1g/t Au FROM TRENCHES AND DRILL HOLES AT NEW LIBERTY

Independent consultants A C A Howe International Limited estimate a currently defined geological resource at the prospect of some 3.2 million tonnes at a grade of 5.14 g/t Au. The resource, which has been calculated to a maximum depth of 150 metres, comprises an indicated resource of some 1.1 million tonnes grading 5.23 g/t Au and an inferred resource of some 2.2 million tonnes at 5.10 g/t, using the Australasian Institute of Mining and Metallurgy Joint Ore Reserves Committee's code for reporting of mineral reserves and resources (AusIMM JORC code). The total contained gold of the resource is estimated to be some 535,000 ounces.

Property	Zone	Category	Metric Tonnes	Grade g/t Au	Contained Gold oz
New Liberty
Larjor		Indicated	484,640	5.89	91,720
		Inferred	652,340	4.53	95,116
King George		Indicated	593,487	4.7034	89,756
		Inferred	759,112	6.5	158,724
East Zone		Inferred	747,338	4.15	99,834
Total Global Resource Estimate			3,236,917	5.14	535,150

King George - Larjor Prospect Soil Geochemistry

King George - Larjor Prospect Geology with Trenches & Drill Holes