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GOLDEN CROSS RESOURCES LTD Capital/Financing Update 2003
64971_rns_2003-12-01_606c3f6e-3020-48ea-a86b-366f3b1a4a56.pdf
Capital/Financing Update
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GOLDEN CROSS RESOURCES LTD
ABN 65 063 075 178
22 Edgeworth David Ave Hornsby NSW 2077 Phone (02) 9482 8833 Fax (02) 9482 8488
ASX ANNOUNCEMENT
2 December 2003
CANBELEGO FARM-IN AND JOINT VENTURE AGREEMENT SIGNED
GCR is pleased to announce that the differences between GCR and Polymetals Mining Services Pty Ltd have been resolved, and the full form Canbelego Farm-in and Joint Venture Agreement has been signed in accordance with the letter agreement between the parties dated 28 March 2003.
As announced to ASX on 2 April 2003, the agreement allows Polymetals to explore GCR's 100%-owned Canbelego Area near Cobar until 28 March 2004. It provides for any gold and silver-bearing ore, mined from mining leases applied for by 28 March 2004 and granted within the Area, to be shared 50:50 between the parties and to be processed through Polymetals' Mt Boppy processing plant.
The agreement requires Polymetals to spend \$200,000 on exploring the Canbelego Area. Approximately \$160,000 has been spent to date on drilling and further drilling is planned for December 2003.
Polymetals has completed mining of an open pit over the old workings of the Mt Boppy Gold Mine at Canbelego, producing approximately 25,000 ounces of gold per annum over the past two years. Processing of stockpiled ore through Polymetals' 150,000 tpa processing plant will continue until mid 2004.
GCR's Canbelego licence (EL 5842) surrounds Polymetals' six mining leases at Mt Boppy (see Figure).
Terms of Agreement
Under the agreement Polymetals has the right to apply for mining leases over openpittable resources of gold or silver mineralisation established within the Area. On. commencement of mining GCR and Polymetals will establish a 50:50 joint venture over any new mining lease, with ore mined to be processed through Polymetals' Mt Boppy plant. GCR will be free-carried by Polymetals through to commencement of mining. Thereafter Polymetals will fund GCR's share of costs associated with mining until gold is produced. GCR will repay those costs from 100% of GCR's share of free cashflow from the project. In addition, GCR will reimburse Polymetals for cash costs incurred in mining and processing GCR's 50% share of the ore.
The 5% net profits interest held by a third party over the Canbelego area will be shared 50:50 by GCR and Polymetals.
The Mt Boppy Gold Mine
The Mt Boppy Gold Mine reached peak gold production in 1904, when it was recorded as NSW's richest gold mine. Its historic production was about 380,000 ounces of gold, from 1 million tonnes of ore at an average grade of about 12 g/t gold.
The Mt Boppy gold lode occurs within a syncline that is plunging 20 to 30 degrees into GCR ground (see Figure). In early 2003 Polymetals identified significant gold mineralisation at depth above the keel of the syncline. Hole PM 65 averaged 20m at 7.73 g/t gold in the eastern limb of the syncline.
Recent Drilling Results on GCR ground
Polymetals completed two programmes of RC drilling, consisting of 21 holes, in GCR's Canbelego Area during 2003, with results released to the market on 22 May 2003 and 23 September 2003. Best results from the two programmes were recorded at Mt Boppy South, where most of the drilling took place, as set out in the table below.
| Hole No. | East (m) |
North (m) |
From (m) |
Intercept (m) |
Gold (g/t) |
|---|---|---|---|---|---|
| SB-06 | 9 6507175 435462 |
10 | 2.75 | ||
| Including | 12 | 4 | 4.95 | ||
| SB-09 | 435432 | 6507177 | 24 | 3 | 10.80 |
| SB-12 | 435435 | 6507190 | 38 | 3 | 8.65 |
| and | 51 | 2 | 5.42 | ||
| SB-15 | 435450 | 6507170 | 30 | 5 | 4.98 |
| SB-17 | 435425 | 6507210 | Surface | 8 | 5.26 |
| and | 26 | 4 | 4.26 |
| Mt Boppy South – Best results from First Two Drilling Programmes | ||||||||
|---|---|---|---|---|---|---|---|---|
| -- | -- | -- | -- | -- | -- | -- | -- | ------------------------------------------------------------------ |
All holes were drilled at an azimuth of 230 degrees and a declination of -60 degrees.
Further Drilling Scheduled for December
During December 2003 Polymetals intends to conduct a third RC drilling programme on GCR ground around Mt Boppy and Mt Boppy South, with the aim of finding new openpittable resources of gold or silver within the Canbelego Area.
4 ÷ 4 $\star$ ÷ $\star$
GCR is a gold and base metals explorer, searching in NSW for large deposits in highly prospective mineral belts, providing significant potential upside for the speculative investor.
The Company holds significant mineral tenement positions within the highly prospective Lachlan Fold Belt, which contains Cadia-Ridgeway, the highest gold site revenue earner in Australia. GCR also owns a major land position in the Curnamona Province of western NSW, which contains the world class Broken Hill orebody, the largest deposit of its type in the world.
Enquiries/requests to receive announcements by email: David Timms, Managing Director Ph (02) 9482 8833, email address: david [email protected]
This report was prepared by David Timms, full time employee of Golden Cross Resources Ltd, who is a Member of the AIG and has more than five years experience in the field of activity in which he is reporting.
