REPORT FOR THE SEPTEMBER 2004 QUARTER

HIGHLIGHTS

Exploration

Completion of the construction of the multilaver exploration database over the D'Aquilar project area and ongoing interpretation and ranking of gold copper porphyry targets.
Improved identification of gold prospects at Long Tunnel. Manumbar. $\bullet$ Elginyale and at the margin of the Esk Trough has validated the database method.
40 $km²$ of laterite nickel targets defined by applying an inhouse D'Aquilar developed filtering strategy to the database.
Newly acquired drilling and sampling data has outlined the Black Snake nickel laterite resource (150,000 tonnes at 1.2% Ni).
Completion of drilling and definition of a 90 metre wide mineralised zone. Continuing analysis of the Elginvale bulk tonnage gold copper prospect.
Completion of the drilling program at the Manumbar epithermal gold prospect $\bullet$ confirming the broad extent of the Manumbar epithermal system.
Commencement of 10 $km²$ ground magnetics and detailed mapping and sampling program at Manumbar.
Preliminary interpretation indicates numerous additional targets at Manumbar $\bullet$ for follow up drilling

Corporate

Cash on hand at 30 September totalled \$1.3 million. $\bullet$ For further information, contact:

Mr Nicholas Mather, Managing Director or Mr Duncan Cornish, Company Secretary Telephone +61 7 3303 0680 or at [email protected]

Electronic copies and more information are available on the Company website: www.daquilar.com.au

ASX Code: DGR

. . . . . . . . . . . . . . . . . . . .

×		٠
Phone	$+63,73303.0680$	٠ ÷ t
Fax	+61 7 3303 0681	t ł
Email	[email protected]	٠ ٠ ÷ í,
Website	www.daguifar.com.au	٠ ٠ ٠ $\sim$

Head Office Level 5. 60 Edward Street Brisbane QLD 4000

Postal Address GPO Box 5261, Brishane OLD 4001

Shamrock Mine Site Slack Snake Road PO Box 72, Kilkivan Di.D 4600 +617 5484 1366 Phone 483754941436

ACTIVITIES DURING THE PAST QUARTER

Exploration Strategy

D'Aquilar Gold Limited is an Australian exploration company focussed on large exploration and mining tenements in the southern D'Aguilar Block of southeastern Queensland. The project is located about 180 kilometres northwest of Brisbane. Main targets are bulkmineable gold-copper deposits with porphyry intrusive affinities and associated epithermal gold orebodies, some of which are high-grade. The large tenement holding also includes nickel laterite occurrences which D'Aquilar believes has the potential to vield a significant nickel resource.

During the quarter the company focused on the ongoing development of its multilayer exploration database over the D'Aquilar Block. The process of ranking exploration targets evident from filtering the various multidisciplinary layers of the database continued and several key targets prioritised.

The important features to emerge during the quarter were:

1. the definition of the mineralised intrusive belt along the western edge of the company's tenements beside the western edge of the D'Aguilar block and eastern edge of the Esk trough and;
1. The definition of 40km² of nickel laterite targets with the potential to host a significant nickel laterite province.

In addition the company continued work on the Manumbar and Elginvale gold prospects where drilling programs were completed and further prospectivity warranting future drill testing were indicated.

Manumbar Epithermal Gold System

The Manumbar gold prospect has been identified as an epithermal gold target, having similarities with other Queensland epithermal gold projects at Cracow and Vera Nancy which contain several million ounces, and due to high ore grades, are or are likely to be low cost producers of gold.

Several key controls to mineralisation at Manumbar have been identified by geological interpretation of mapping, diamond drill core, geophysics and gold distribution within the recently mined open pits:

1. Emplacement of the vein in brittle andesite lavas rather than agglomerates
1. Broad requirement for the presence of a vein flexure to host significant grade
1. Presence of adularia, a diagnostic potassium feldspar mineral
1. Mineralisation with a high gold to silver ratio.

These features are also evident at the Cracow and Vera Nancy deposits.

Fig. 1 D'Aguilar Project Area

During the quarter D'Aquilar commenced further detailed mapping and sampling programs at Manumbar and a detailed ground magnetic survey covering 10km² over the three existing Manumbar pits. The ground magnetic program is not vet finalised, however the initial results indicate that an extensive fracture system and host brittle and magnetic andesite units are present at Manumbar. A number of these fractures may be prospective host structures for epithermal gold mineralisation.

The magnetic survey appears to have also achieved the prime aim of providing a mapping tool for the identification of more prospective brittle andesite lavas which are more suitable as host rock for the epithermal gold mineralisation. During this intense field work program, a number of additional samples of mineralised vein material were located in the vicinity of fractures indicated on the magnetics. Assay results for these samples are not vet available. D'Aquilar expects to complete mapping and interpretation of this survey during the current quarter. The magnetic survey will also be modelled in three dimensions, providing a valuable targeting method for future drilling programs.

Following this interpretation. D'Aguilar expects to be in a position to continue drilling on the Manumbar project. D'Aquilar continues to target a vein system in excess of 5km strike with potential to host in excess of 1 million ounces of gold. The company continues to believe that gold grades may be significantly higher in the deeper parts of the Manumbar system and that brittle and more magnetic andesite lavas represent the better host material. During the current quarter the Company will also map and sample the Court Le Roi trend to the south west of the Manumbar prospect.

Elginvale

During the quarter, the company completed a drilling program of five holes on the Elginvale porphyry system in the south-west of the D'Aquilar project area. The holes tested the southern portion of a 2.5 x 1km anomalous zone, defined with gold in soils and peaking at six parts per million gold. The drilling was designed to provide follow-up confirmation of intersections within this zone, discovered by CRA in 1991 in drill holes EV2 and EV4. EV4 from 110 metres to the bottom of the hole at 150 metres intersected 40 metres of mineralised and altered diorite grading 0.8g/t gold.

Some 400 metres further south, drillholes EV2 terminated at 150 metres, with the bottom of hole sample returning 2 metres @ 1.4g/t Au. These holes are located coincident with an intense magnetic high feature. The drilling has intersected broad zones of mineralisation up to 90m wide with preliminary results indicating significant low grade gold anomalism. The core from drill holes is still being processed through the laboratory and results will be released when the analyses are complete.

The area is the centre of a zone of complex intrusive features represented by magnetic highs over a north-south extension of 8kms. D'Aguilar has commenced a detailed mapping and soil sampling program south of the existing Elginvale grid over a distance of 4km south to the Ollenbergs prospect. Other gold bearing bulk tonnage targets similar to Elginvale exist in a north, north-west orientated zone running north north west from Elginvale over a distance of 40km, including the King Creek, Jimmy's Scrub, Peenam and Gallangowan prospects which are currently also being investigated in the field by mapping and sampling programs.

During the quarter, mapping and sampling at King Creek outlined a mineralised intrusive outcropping over 1km2 which hosted altered and mineralised rocks with significant gold anomalism which requires further follow-up.

Laterite Nickel

The entire south D'Aguilar block has been deeply weathered during the Tertiary Period and a leached deep red soil cap termed "laterite" formed at surface. This has been eroded in many places but some laterite zones have been preserved. Laterites that form on top of ultramafic and ultrabasic rocks such as occur extensively through the D'Aguilar Project area can contain significant nickel concentrations and become nickel laterite orebodies. These ultramafic rocks are often altered to serpentinites in this part of Australia. D'Aquilar has established that the serpentinisation process has enhanced the nickel grades in the basement rock thus enhancing the likelihood of a high grade laterite forming in its project area.

During the quarter the company used its newly operational database and filtering systems to assessed the nickel laterite potential of its entire 3000km² project area. An extensive zone of suitable host rock types including serpentenites was identified and 40 km² of targets with laterite nickel potential were identified using a proprietary database technique that was validated on the known Black Snake nickel laterite orebody (see below). The company intends to sample these newly recognised areas in the field during the current quarter. All of these targets exhibit nickel anomalism in stream sediment results where such data exists. Key targets have been defined by the Company's exploration team at Kabunga, Widgee Teewoo and at Mt Clara, also on the Black Snake Plateau.

D'Aquilar has acquired a significant database of detailed geochemical information over the Black snake Plateau which shows very high background nickel values in the host Mt Mia Serpentenite. Reconnaissance rock chip sampling by previous workers has indicated extensive areas of nickel mineralisation in excess of 0.25% nickel and up to 1.6% nickel which the company believes indicates outstanding potential substrate for the development of nickel rich laterites.

The database acquired also included the records of 45 drill holes which defined a small resource of approximately 150,000t of nickel laterite at a grade of 1.2% nickel and ranging from 1 to 2.9% nickel. The resource is located some 3km from the exploration base at the company's Shamrock Mine 30km south of Kilkiyan. D'Aguilar nickel laterite filtering strategy applied to the database identified this resource and confirms the validity of the targeting strategies.

These data are being put into a resource modelling system and the nickel-cobalt contents will be estimated in accordance with JORC standards during the current quarter. Initial assessment is that cobalt potential is also high.

D'Aquilar fully intends to assess the 40km² of nickel laterite targets during the current quarter.

Cash on hand

Cash on hand at 30 September totalled \$1.3 million.

On behalf of the Board D P Cornish, Company Secretary D'Aquilar Gold Ltd

CORPORATE INFORMATION & DIRECTORY

DIRECTORS

Christopher Rawlings (Chairman) Nicholas Mather (Managing Director) lan Levy Brian Moller Damien Reynolds Vincent Mascolo

COMPANY SECRETARY

Duncan Cornish

EXPLORATION MANAGER

Julius Marinelli

REGISTERED OFFICE AND HEAD OFFICE

D'Aguilar Gold Ltd Level 5 60 Edward Street Brisbane QLD 4000 Phone: $+61733030680$ $+61733030681$ Fax:

SHAREHOLDER ENOURIES

Pitcher Partners (formerly Douglas Heck & Burrell) manages D'Aguilar Gold Ltd's share registry.

If you would like to monitor your shareholding online, you can do so by visiting Pitcher Partner's website. www.shares.com.au, and following the instructions.

For issuer-sponsored shareholders, if you change address, or if you have any other queries regarding the details of your shareholding, please contact the Company's share registry directly:

Pitcher Partners Level 22, 300 Oueen Street Brisbane OLD 4000 Phone: $+61732284000$

ISSUED CAPITAL

At 30 June 2004, D'Aguilar Gold Ltd had the following securities on issue:

57.3 million ordinary shares
28.7 million 20c options expiring 31/3/06 ä
$\ddot{\phantom{0}}$ 4.5 million 20c options expiring 31/10/05

STOCK EXCHANGE LISTING

On 19 August 2003 D'Aguilar Gold Ltd was admitted to the Australian Stock Exchange Ltd ("ASX") and the Company's shares commenced trading on the ASX on 21 August 2003.

ASX Codes: DGR (Ordinary shares) DGRO (20c Options expiring 3/3/06)

INTERNET ADDRESS

$\rm{Al}$ Company announcements, reports and presentations are posted our website $-$ 0.0 www.daguilar.com.au.

If you would like to receive new releases by email, please send us an email to [email protected] with the subject "email alerts" or register your details on
our website by clicking "Contact Us" and entering vour details.

Website: www.daguilar.com.au

AUSTRALIAN BUSINESS NUMBER

ABN 67 052 354 837

. .		$\sim$ $\sim$ .	. . .
Phone	$+63$ 7 3303 0680	Head Office	Postal Address
Fax	+61 7 3303 0681	Level 5.	GPO Box 5261.
Email	[email protected]	60 Edward Street.	Brisbane QLD 41
Website	www.daguilar.com.au	Brisbane QLD 4600

DO\$

AI assistant

DGR GLOBAL LIMITED Interim / Quarterly Report 2004