Resource Estimate

Interactive Apollo Hill 3D Resource Model
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A resource estimate for Apollo Hill was initially made in December 2010 by Hellman and Schofield Pty Ltd (H&S), which was subsequently updated in September 2011 to give a JORC inferred resource of around 17.2Mt at 0.9 g/t for 505,000 ounces of gold using a 0.5 g/t cut-off, with the maximum depth of the resource at 150m below surface. The new estimate incorporated the results of an RC and Diamond drilling programme undertaken by Peel in April 2011.  Comprising of 21 RC drillholes for a total 3,276m, the drilling was designed primarily to enable the extension of the existing Apollo Hill resource model a further 200m (grid) south and to a minimum depth of about 150m below surface. Two HQ diamond drillholes were also completed for an additional 310m, providing material for metallurgical testwork. The update represented a 48% increase in contained ounces, and highlighted the potential for the Apollo Hill Project for future economic extraction. Further work has been planned which aims at obtaining a better understanding of the controls and vectors for mineralisation.

The updated resource estimate at a range of gold cut-off grades is shown below:

September 2011 Apollo Hill Inferred Resource Estimates to 180m Depth (190MRL)
Au g/t Mt Au g/t Koz Mt Au g/t Koz Mt Au g/t Koz
0.2 2.4 0.7 54 43 0.5 691 45.4 0.5 745
0.4 1.5 1.0 48 22 0.8 566 23.5 0.8 614
0.5 1.2 1.1 42 16 0.9 463 17.2 0.9 505
0.6 1.0 1.2 39 12 1.0 386 13.0 1.0 424
0.8 0.7 1.4 32 7 1.2 270 7.7 1.2 302
1.0 0.5 1.6 26 4 1.4 180 4.5 1.4 206
1.2 0.4 1.8 23 2 1.6 103 2.4 1.6 126
Note: The significant figures in above reflect the precision of estimates and include rounding errors.

The Apollo Hill Project consists of two deposits; the main Apollo Hill deposit in the north of the project area, and the smaller Ra deposit in the south. At the main deposit, two zones of mineralisation have been identified; the West (Main) Zone and the East Zone. Gold mineralisation is associated with quartz veins and carbonate-pyrite alteration along a steep dip to the north-east. Mineralisation is also present at surface, which is yet to be exploited. Drill testing by 30m spaced, 45 degree trending traverses has outlined an average width of approximately 100m in the Western mineralised domain and 170m in the Eastern domain.

At the Ra deposit, located to the south-east of the main Apollo Hill deposit, mineralisation hosted by dolerite rock dips 30-60 degrees to the east. Twenty metre spaced, 45 degree trending traverses of drill holes have defined the current strike length of about 300m.

Combined, the mineralised zones extend over a strike length of approximately 1.4 kilometres, and have been intersected by drilling to a maximum depth of approximately 350m below surface. Mineralisation at the Apollo Hill and Ra deposits remains open at depth and along strike to the south of both deposits.