Update on Old Pirate

Hi There,

As you would have seen from our latest releases, all is going well in the field. It is great to have the Old Pirate High Grade Prospect and the Buccaneer Porphyry Prospect so close together. It allows us to leap between the projects whilst awaiting assay results from subsequent phases. We are also hoping to get to follow up on Hyperion this year where we have a tantalizing 60m @ 2.57g/t Au that needs following up.

I must admit, Old Pirate is shaping up very nicely. The recent drill results of 5m @ 274g/t Au goes down as one the of the highest grade (gram*metre) intercepts in the world this year. Our continued diligence from our very hard-working team of geos continues to uncover new veins and lots of visible gold. We have extended the OP Central / South system to covering more than 20 veins over an area 600m x 250m. And all that is within a 3km long anomaly.

And at Buccaneer – 300m+ of mineralization in drilling at around 0.5g/t and some nice >100m zones running +1g/t add to the merits of this very large footprint target. This is a different kind of target to what we are typically used to in the Australian junior scene. This is a bulk tonnage target where we are aiming for grades of between 0.5 and 1.0 g/t. We are currently footprinting this prospect at between 200,000 and 300,000 square metres and we don’t even know where the edges are yet.  We of course don’t yet have a resource on this, but it has a similar footprint and grade (so far) to some great mines and if you want to spy some potential comparables have a look at a couple of projects from north in Alaska with Kinross’s Fort Knox Mine http://www.kinross.com/operations/operation-fort-knox-alaska-usa.aspx and International Tower Hill’s project  http://www.ithmines.com/s/Livengood.asp

Darren

Publication Date: 25/08/2010