DGR GLOBAL LIMITED — Interim / Quarterly Report 2004

Apr 29, 2004

D'AGUILAR GOLD LTD

REPORT FOR THE QUARTER ENDED 31 MARCH 2004

CONTENTS

Highlights

Activities During the Past Quarter

Work Programs for the Current Quarter

Corporate Activities

Corporate Information & Directory

For Further Information Contact: Mr Nicholas Mather, Managing Director or Mr Duncan Cornish, Company Secretary Telephone: +61 7 3303 0680 Fascimile: +61 7 3303 0681

HIGHLIGHTS

Exploration

• Detailed review and drill target selection for the Manumbar Epithermal Gold System. 0.5 - 2.5 m ounce gold target. Similarities identified with the Cracow and Vera Nancy Gold projects
• Drill program of 5,000 metres planned for commencement in early June, focussing on Manumbar
• Completed tenement acquisition over the D'Aquilar Block
• Completed acquisition and compilation of regional data for the D'Aguilar Gold Project
• Identification of six key prospects to be mapped and sampled for drill target definition
• Identification of three epithermal target areas in the Esk Trough Volcanics
• Continued target prioritisation using the database
• Completed drill programs at Mt Clara, Tablelands and Shamrock
• A further 768km2 of gold exploration tenements applied for

Corporate

Cash on hand at 31 March 2004 of \$2.6 million

ACTIVITIES DURING THE PAST QUARTER

Exploration Strategy (Figures 1, 2)

Since the float of D'Aguilar and its listing on the ASX, the Board has reprioritised the targets originally detailed. The ongoing work on the geological database has enabled the reprioritisation of deposit targets. This has been driven by the desire to ensure the delivery of positive drilling results. The Manumbar Epithermal Gold Project has emerged as the target most likely to deliver that result and accordingly in January, the focus of the exploration effort was redirected to the Manumbar Project. The similarity mineralogically between Manumbar and the well-known Cracow deposit (Newcrest 70% 1.0 million oz, 0.8 million mined) and Vera Nancy deposit (Newmont, 3.5 million oz) underscores the potential at Manumbar for the discovery of $0.5 - 2.5$ million ounces in a vein system to 700 metres depth, over 5 km strike length.

Manumbar Epithermal Gold System (Figures 3, 4, 5)

During the quarter. D'Aquilar conducted detailed mapping and sampling programs around the periphery of the existing Manumbar pits. These programs precede a 5,000 metre drilling program, due to commence in June 2004. The industry experience of epithermal vein style deposits in Queensland necessitates a thorough structural understanding prior to commencing drill programs, and D'Aquilar is addressing this.

Manumbar is characterised by the predominance of calcite in a vein system which has been mined to a depth of only 60 meters for the recovery of 49,000 ounces gold at a head grade of 5.2 g/t, prior to the current ownership of D'Aquilar, Known strike length of workings is 1.2km. In situ grades in exploration drilling reached over 40 g/t gold. The veins are essentially devoid of silica mineralisation and are interpreted to lie above the boiling zone which in a gold bearing epithermal system can be expected to host very high or "bonanza " gold grades. D'Aquilar estimate the boiling zone to be at a depth of approximately 300 – 400m. The key features identified in the vein system include the presence of adularia (a potassium feldspar) and polyphase breccias indicating several phases of mineralisation and a high gold to silver ratio. These features are also evident at the Cracow and Vera Nancy deposits.

At Manumbar the emplacement of previously identified high grade shoots is not well understood, however a combination of volcanic bedding, fracture orientations and fault movement along the line of Mi Mi Creek has probably controlled the location and size of high grade shoots. Specific drill targets have been located in positions detailed in Figure 3:

(M1) West Pit Deeps (Figure 4)

Grade x thickness containing indicates a steep easterly plunge for existing shoots in the West Pit at Manumbar. Targets in the postulated high grade boiling zone at $\approx$ 400 metres depth are indicated.

(M2) East Pit Deeps (Figure 4)

Grade x thickness containing indicates a steep easterly plunge for existing shoots in the East Pit at Manumbar. Targets in the postulated high grade boiling zone at $\approx$ 400m depth are indicated.

(M3) East of the North Pit at 50-100 metres depth (Figure 5)

This target is supported by the presence of previous drill intersections of 4 meters true thickness at 3.6 g/t Au at a depth of 50 meters.

(M4) Projected junction of the west Pit and north lode

This is supported by recent rock samples which vielded 160 o/t gold in banded and brecciated calcite vein material.

(M5) Junction of Mi Mi Creek and the jogged west Pit - East Pit line

This structural target has never been tested by drilling has potential for sufficient space in which to accommodate an ore body.

(M6) The West Ridge

This is supported by surface gold values in soil and stream up on the west side of Mi Mi Creek north of the North Lode.

(M7) East of the East Pit extended

This is supported by surface gold values in soil over the previous CRA soil grid.

(M8) Mi Mi Creek

The target covers a 3.5 km long zone south west towards the historic Court Le Roi diggings which are siliceous and may be a deep equivalent of the high level Manumbar system. Gold has been recorded in rock chip sampling between 0.3 and 9.0 g/t at Court le Roi. The extension of the zone of surface gold values southwest from Manumbar on Mi Mi Creek is indicated in the stream sediment data as indicated in figure 3.

(M9) Soil Anomalies north of the North Lode

Gold values in soils and stream north of the North Lode range from 5.3 to 10.4 ppb gold and are supported by stream sediment anomalies ranging from 10.4 to 27.0 ppb. These have not previously been investigated.

D'Aquilar is targeting a vein system with a potential in excess of 5 km strike, based on the extent of known structural and geochemical anomalies. Previous drilling data on the vein system indicates that the vein system has the potential to be mineralised at in excess of 8 g/t gold average over true widths in excess of 2 metres over 50% of its known strike length. Gold grades may be significantly higher than this, at depth in the boiling zone and the upside potential of the entire system has the potential to be approximately 2.5 million ounces of gold down to a depth of 700 metres.

Database (Figures 1,2)

During the quarter, the acquisition of the major geochemical, geophysical and GIS data sets over the D'Aquilar Gold project was completed. The area covers some 3,000 $km²$ and the database represents the only compilation of all of the existing exploration remote sensing and satellite data to be assembled over the D'Aquilar Block. The database is facilitating a regional approach to exploration of the D'Aguilar Block. leading to the definition of a number of new prospect areas and resulting in a better definition of priority for drill targets.

The database comprises:

• Six aeromagnetic surveys
• Four geochemical databases, encompassing 63,000 stream sediment sample points 14,000 soil samples and 10,000 rock chip samples. The stream sediment data has been levelled
• Three landsat data and aerial photography sets $\bullet$
• Mineral occurrence data
• Published and unpublished geological maps $\bullet$
• Field geological maps $\bullet$
• Land tenure $\bullet$
• Topographic data $\bullet$

The geochemical data previously collected by BHP over the Esk Trough has recently been levelled and entered into the databases. Several areas showing a deficiency in geochemical coverage are evident and D'Aguilar plans to infill this data in the current quarter.

A program of detailed mapping and sampling over May and June will be implemented to upgrade five key targets to drill ready status. D'Aguilar is engaging three additional geologists to conduct these programs in the field.

Prospect Ranking Priorities (Figures 1,2)

As a result of the database construction, and a revised understanding of the potential offered by several of the targets, D'Aguilar has been able to re-prioritise the various known prospects within the exploration portfolio as follows:

Drill Ready

Prospect Grouping 1999 - 1999 - 1999 - 1999 - 1999 - 1999 - 1999 - 1999 - 1999 - 1999 - 1999 - 1999 - 1999 - 1999 - 1999 - 199	Sivic REPORT REPORT AND REPORT 1988 - Samuel Andre	Mh. Tanget Size	Key Features	Previous Brocuetion	Drill program i (Alala ala ala ala ala ala 2009 - 2009 - 2009 - 2009 - 2009 - 2009 - 2009 - 2009 - 2009 - 2009 - 2009 - 2009 - 2009 - 2009 - 2009 - 200
1. Manumbar Manumbar - Court le Roi system	Epithermal	500 k oz	Similarities to Vera Nancy and Cracow	49 k oz	Up to $5,000$ mtrs commencing June
2. Clara Fault – Black Snake Plateau Tablelands - Pembroke - Shamrock	Mineralised shear in Greenstones	25 k oz	Adjacent to plant	$15k$ oz	Deep hole to test Tablelands Deep in July
3. Elginvale	Porphyry	1 m oz	40 m @ 0.8 g/t Au end hole @150 m (CRA 1991)	1 k oz	Deep hole to test potassic zone in July

Target Definition

Prospect Grouping 2008 - 2008 - 2008 - 2008 - 2008 - 2008 - 2008 - 2008 - 2008 - 2008 - 2008 - 2008	Stv1e Elemental a s	Wilm. Tarcet Size	Key Features	Program
4. Collins Creek	Flat Replacement shear	300 k oz	Up to 126 g/t Ag & 3.5 g/t Au rock chips	Detailed map, sample, access and drill pad construction May
5. Long Tunnel - One Mile	Porphyry	$1 \text{ m oz}$	Regional Mapping 100 k oz alluvials, Disseminated Au and Cu in gravodiorites.	Detailed mapping and sampling in May
6. Cinnabar Field Wongella - Goldtop - Scubby Creek	Epithermal quartz calcite and silica. vein systems	500 k oz	Marginal to intrusives hosts mercury ores sporadic gold anomalism up to 31 g/t at Gold Top	Regional mapping and rock chip and stream sediment sampling May, June
7. Kabunga - Jimmy's Scrub	Porphyry	1 m oz	Gold - copper anomalism over soils high grades in old workings to 90 g/t gold	Detailed mapping sampling over target zone in May, June.
8. Sinai Basin Ortts - Sawpit Creek	Epithermal and porphyry Contact Zone	1 m $oz$	8 km 2 of stream sed anomalism Calcite Veins and epithermal Quartz float to 10 g/t Au	Mapping sampling Program over May, June
9. Clara Epithermals	Epithermal quartz field	500 k oz	Low order Au anomalism and pits	Mapping sampling Program over May, June

Elginvale - King Creek - Peenam

At Elginvale, D'Aquilar will drill three holes totalling 1,000 metres, to intersect mineralisation in a CRA drill hole drilled in 1991. This hole returned from 110 metres to the bottom of the hole at 150 metres intersected 40 metres of mineralised and altered granodiorite grading 0.8 g/t gold. Some 400 metres further south another hole by CRA terminated at 150 metres, with the bottom of hole sample returning 2 metres $@$ 1.4 g/t Au. These holes are located coincident with a magnetic high feature.

Similarly, at Peenam, some 16km NNW of Elginvale a broad mineralised system has been located with previous drilling intersecting a mineralised zone of 106 meters at 0.16 g/t. A nearby magnetic high has not yet been tested. Again, at King Creek, 23km NNW of Elginvale, a highly magnetic feature has similarly not been tested. D'Aguilar is currently defining potential drill targets over magnetic zones.

D'Aguilar believes the magnetic highs represent magnetite rich intrusives which host the richest mineralisation. These intrusive features are frequently not outcropping but are evident at several locations along the eastern side of the Esk Trough

Collins Creek

Previous interpretation of the Collins Creek prospect suggested that it was a volcanogenic massive sulphide occurrence, however recent investigation of its structural setting and geochemical signature suggest that it is in fact a replacement style deposit emplaced in Devonian aged basement sediments and Volcanics. The mineralisation occurs at the intersection of northeasterly trending fractures and a north south striking thrust fault dipping at a shallow angle to the west. The mineralisation is evident in both Black Snake and Collins Creeks to the southwest of the Shamrock mine over a zone covering some 300 X 200 metres on current mapping. The thrust zone is thought to be related to the Clara Fault thrust on the west side of the Black Snake Plateau. The down dip and strike extents of the zone are to be defined in the current quarter.

Long Tunnel - One Mile

Data compilation has been completed for the Long Tunnel – One Mile area. The prospect area requires detailed mapping, rock chip sampling and magnetic interpretation prior to the definition of drill targets. This work program is being conducted this quarter.

Cinnabar Field

Vein systems associated with the mercury mines in the area are thought to be related to deep fracture systems evident on the aeromagnetic cover over the area. D'Aquilar intends to conduct detailed regional stream sediment programs over an area of approximately 500 km2 in the Cinnabar area west of Kilkivan in order to define gold mineralised vein systems during the current quarter.

Kabunga - Jimmys Scrub

Recent reconnaissance by D'Aquilar at Kabunga, some 20 km south of the Shamrock Mine on the Black Snake Plateau has defined a 3km wide zone of sporadic porphyry style gold mineralisation trending northwest over a length of approximately 8 km. D'Aquilar intends to conduct detailed stream sediment sampling over the area on a 2 km2 basis to define targets for follow up mapping prior to drill target definition.

Sínai Basín

Recent mapping and historic stream sediment data over the Sawpit Creek area has defined a zone 4km x 500 metres showing stream sediment anomalies over 10 ppb gold. Float sampling in Sawpit Creek recently indicated a zone of anomalous gold and copper mineralisation may be present in a carapace zone marginal to a granodioritic intrusion. Nearby, a calcite and quartz vein at the Ortts prospect was mined historically for both precious and base metals. The area occurs in the recently defined Sinai Volcanic Basin, which is filled with the same andesitic volcanics as the Manumbar Basin to the south. D'Aquilar intends to map and sample the area in detail over the next two months in order to define drill targets.

Clara Epithermals

On the epithermal quartz zone on the northern end of the Clara Fault zone a mapping program will be conducted to define drill targets in order to follow up a weak 400 metre long gold in soils anomaly outlined by a previous exploration.

Additional Tenements (Figures 1.2)

During the Quarter. D'Aquilar identified several zones of extensive stream sediment gold anomalism to the south and south east of the existing project area. Three Exploration Permit Applications covering a further 768 $km^2$ were lodged to cover these areas. The western most of these applications covers a zone of Permian aged intrusives and Volcanic rocks exhibiting coincident aeromagnetic features. A program of regional reconnaissance to outline specific prospects and targets is planned following grant.

Drilling

The planned drilling program to commence in early June will target the prognosed ore positions at Manumbar at a depth of 300 to 400 metres average, where D'Aquilar assesses the boiling zone to be best developed on the Manumbar vein system. The drillholes will consist of approximate 200 metre precollar percussion holes with diamond drilling tails to a maximum depth of 500 metres. Approximately 12-15 holes are envisaged at Manumbar, with results beginning to be available in mid to late June.

Subject to encouraging results early in the program, D'Aguilar will be sourcing a second drill rig for concurrent drilling program in the next quarter (July to September 2004) of a further 5,000 metres on targets matured this quarter and at Manumbar.

Drilling Results During the Quarter

During the quarter D'Aquilar completed 950 metres in drilling programs at Mt Clara. Shamrock and Tablelands Deeps.

At Mt Clara, two holes were drilled for a total of 242 metres to target the mineralised structure downdip of the existing workings. Neither hole intersected the mineralised lode. D'Aquilar has de-prioritised the Mt Clara project in favour of more prospective targets currently evident.

Clara Fault - Black Snake Plateau

At Tablelands Deeps, a drillhole intersected 1 metre at 12 g/t, some 60 metres below the Tablelands Open Cut supporting the prospectivity of the Clara Fault system. D'Aquilar will further test the intersection to identify thicker shoot development. The zone is 1 km from the Shamrock plant.

At the Shamrock mine, three holes were drilled on the existing open cut for a total of 156 metres of diamond core and 552 metres of reverse circulation drilling. A zone of mineralisation was intersected over 18.0 metres wide between 138.9 metres and 156.9 metres downhole in the southern most hole in the Shamrock workings. The average over this length was 18.0 metres @ 0.3 g/t au, with the best result being 4.7 metres @1.0 g/t Au from 153.1 metres. An additional drillhole placed under the southern extension of the pit from the eastern side encountered drilling difficulties prior to intersecting the mineralised lode and was terminated. The Shamrock mineralisation is a typical carbonate gold – base metal vein assemblage peripheral to a more extensive central core; and is interpreted to extend under serpentinite cover to the south. This will be further investigated following a review of the surface geology in the area.

Key Targets:

Drill Ready

• 4 Manumbar (Court le Roi) 4
• Clara Fault

• ž
  3 Elginvale

• Target Definition

• Collins Creek
• Long Tunnel 1 Mile & Cinnabar

5

6

• 7 Kabunga - Jimmy's Scrub
• Sinai Basin 9
• Clara Epithermal

Key Targets:

Drill Ready

• 1 Manumbar (Court le Roi) &
• $\frac{2}{3}$ Clara Fault
• Elginvale

Target Definition

Ø.

• Collins Creek Long Tunnel - 1 Mile ^® Cinnabar
• Kabunga Jimmy's Scrub Sinai Basin
• Clara Epithermal

5

繑

				Figure 5.
			DRILLING TARGETS	3060mF
			MANUMBAR NORTH LODE
			ORIGINAL DILUTED RÉSOURCE (INDICATED)	งใช้ใจบลิ
	Base of I		18 500 tonnes @ 3.9 g/t Au for $-2300$ oz gold Original Su Mace
				1000mRI
		. (6m @ 1.35 g/l.Au)
		Untested
				940mR
			(4m@3.6 g/t)
				Untested High Grade
		$>20g \times m$ Au		Intercept 910mRL
		> 5g x m Au
		Drillhole Assay (Horizontal Width)
				CRA Local Grid

D'Aguilar Gold Ltd March 2004 Quarterly Report

WORK PROGRAMS FOR THE CURRENT QUARTER

During the current quarter D'Aguilar has the following programs planned:

Activity this quarter	Prospect Group
Mapping sampling and drill target selection	Manumbar
1,250 metres RC & diamond Drilling	Manumbar
Mapping sampling (1,600 samples)	Collins Creek, Long Tunnel - One Mile, Cinnabar Field, Kabunga - Jimmy's Scrub, Sinai Basin

The balance of the 5,000 metres of drilling planned at Manumbar will be completed in the next quarter (ending 30 September 2004).

CORPORATE ACTIVITIES

Tenement Applications

During the quarter. D'Aquilar has applied for a further 768 km² of gold exploration tenements in an area to the south and south east of Manumbar. The area was selected on the basis of extensive gold anomalism coincident with Permian volcanics and intrusives. (See Figs 1, 2).

Gympie Gold receivership

D'Aquilar is continuing to explore the D'Aquilar Project Area in south east Queensland unaffected by the appointment of a Receivers and Managers to Gympie Gold.

Gympie Gold's shareholding in D'Aguilar

Gympie Gold holds 14.5 million shares in D'Aguilar, of which 12.75 million remain subject to ASX restriction agreements, 1.75 million shares were released from voluntary escrow during the quarter.

In relation to the proposed sale by the Receivers and Managers of Gympie Gold of the 12.75 million D'Aquilar shares. D'Aquilar advises:

• 1. D'Aquilar is a party to the escrow restriction agreements.
• 1. Any variation to the escrow restriction agreements would require the approval of D'Aquilar, in addition to regulatory approvals.

Gympie Eldorado Gold Mine

As part of an ongoing review of regional acquisition opportunities, D'Aguilar undertook an internal assessment of the Gympie Eldorado Gold Mine, which is being offered for sale by tender by the Receivers and Managers of Gympie Gold.

Cash on hand

Cash on hand at 31 March 2004 totalled \$2.6 million.

The information on ore reserves and mineral resources contained in this report is based on information compiled by Mr Nicholas Mather who is member of the Australian Institute of Mining and Metallurgy. Mr Mather has relevant experience in relation to the mineralisation being reported on to qualify as a Competent Person as defined by the Australasian Code for Reporting of Mineral Resources and Reserves.

CORPORATE INFORMATION & DIRECTORY

DIRECTORS

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

COMPANY SECRETARY

Duncan Cornish

EXPLORATION MANAGER

Ron Cunneen

REGISTERED OFFICE AND HEAD OFFICE

D'Aquilar Gold Ltd $1$ evel 5 60 Edward Street Brisbane QLD 4000 Phone: +61 7 3303 0680 + 61 7 3303 0681 Fax:

SHAREHOLDER ENQUIRIES

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 Queen Street Brisbane QLD 4000 Phone: +61 7 3228 4000

ISSUED CAPITAL

At 31 March 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
• 4.5 million 20c options expiring 31/10/05 $\bullet$

STOCK EXCHANGE LISTING

On 19 August 2003 D'Aquilar 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)

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AUSTRALIAN BUSINESS NUMBER

ABN 67 052 354 837