EVOLUTION MINING LIMITED - Capital/Financing Update 2002

19 Nov 02 10:19a

Mooney & Partners Pty Ltd 92260130

WESTONIA MINES LIMITED

FACSIMILE (Please advise by return facsimile if any part of this transmission failed or was misdirected.)
				To
Attention		Manager, Companies
Facsimile No:		1300 300 021	AUSTRALIAN STOCK EXCHANGE
From		John Hannaford	WEZ000024
Date	÷	19 November 2002
Subject	÷	RESULTS OF FEASIBILITY STUDY

Dear Sir,

Please find attached announcement from the Directors of Westonia Mines Limited.

Yours sincerely,

ÍOHN A. HANNAFORD Company Secretary

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WESTONIA MINES LIMITED

19 November 2002

The Manager Company Announcements Platform Australian Stock Exchange Limited Level 10, 20 Bond Street SYDNEY NSW 2000

Dear Sir / Madam

Westonia Mines Limited is pleased to announce that Stage One of its independent Feasibility Study supports the re-opening of gold mining operations at its Westonia Mine in Western Australia.

Study Co-ordinator Lycopodium Pty Ltd concluded in the first of two stages of the study to bankable standards that "the project is economically robust at current gold prices of AUD \$575 per ounce".

Stage One of the Study covered:

Confirmation of the previously announced global resource of 923,000 ounces
Estimation of a JORC-compliant mineable resource within an optimal pit shell of 8.5Mt at 1.8 g/t for a contained 500,000 ounces
Metallurgical test work required to select the process route (Carbon-in-Leach versus Heap Leach after using a high pressure grinding roller)
Estimation of mining, processing and administrative costs
Estimation of capital costs
Estimation of overall project economics

As a result of the Stage One study the Board of Westonia Mines has chosen to proceed to Stage Two of the study, incorporating a 1.5 million tonne per annum Carbon-in-Leach circuit designed to produce over 70,000 ounces of gold annually.

The Board decided that the Heap Leach alternative, while offering apparent operating cost advantages, held an unacceptable level of risk.

Lycopodium has provided first pass capital and operating cost estimates of less than \$30M and mid \$300/ounce range, respectively. In the second and final stage of the Feasibility Study there will be optimization of all aspects of the Project.

Stage Two will additionally address civil and mining engineering areas and social and environmental matters. It is scheduled for completion by the end of the first quarter of 2003, subject to availability of a suitable second-hand mill and obtaining statutory approvals. The Company has begun a search for a suitable mill.

The cost of Stage Two is estimated to be approximately \$400,000 and will be funded from the Company's cash reserves of \$4.7m.

Drilling and New Resource Estimation

Westonia Mines has recently drill tested the previous operator's mineralized stockpile (the "Live Waste") via a 150 hole 1950 metre drilling program. As the Live Waste is oxidised, soft and already mined it is likely to provide a significant boost to overall project economics.

The Company is also testing beyond the boundaries of the currently defined pit shell in a 29 hole \$300,000 reverse circulation and diamond drilling program which will be completed in November. It aims to determine continuity of mineralization near and beyond the currently designed base of the pit, and to determine the along-strike economic boundaries of the mineralized system.

Assay results will not all be in hand until about mid December. The best preliminary results to date from drill holes beyond the present pit boundary design, as shown in the accompanying Figures, are:

Hole WRC 986 : 148 - 152m downhole; 4m at 19.0 g/t

Hole WRC 991 : 44 - 54m downhole; 10m at 7.4 g/t

All drill results from these two programs will be used in a new resource estimation as part of the Stage Two Feasibility Study.

A BALANCA CARRIER COMMUNICATION CONTINUES IN CONTINUES IN THE CONTINUES OF THE CONTINUES OF THE CONTINUES.
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Enquiries should be directed to the undersigned and readers are encouraged to register on the Company's website (www.westoniamines.com.au) for automatic receipt of information.

Released for and on behalf of Westonia Mines Limited

Andrew Drummond Managing Director

Competent Person Declaration

The information on mineralization in this report accurately reflects information prepared by competent persons (as defined by the Australasian Code of Reporting of Identified Mineral Resources and Ore Reserves). It is compiled by A.J. Drummond, an employee of the Company who is a Fellow of The Australasian Institute of Mining and Metallurgy with more than five years experience in the field of activity in which he is reporting.