RAND MINING LIMITED — Interim / Quarterly Report 2003

Oct 29, 2003

30 October 2003

The Listing Manager Australian Stock Exchange Level 10 20 Bond Street SYDNEY

Quarterly Report for Period ending 30 September 2003 Geology and mining

Highlights

• $\bullet$ EKJV recovered 30,078 ounces during the Quarter.
• $\bullet$ EKJV total production exceeds 165,142 ounces of gold.
• Production from the Raleigh and Rubicon pits continued.
• EKJV Total Cash Cost \$A253 per ounce.
• Seven Mile Hill drilling encounters encouraging results.
• Oretek study demonstrated selective removal of nickel, copper and cobalt from acid solutions in nickel laterite ore.

REVIEW OF OPERATIONS

The East Kundana Joint Venture in which your company has a 12.25% interest has combined resources of 1.572 million ounces inclusive of an estimated 0.733 million ounces in reserves remaining as at the 30 September 2003.

During the September 2003 Quarter the EKJV recovered 30,078 ounces of gold at a total cash cost of \$253 per ounce. A total of 31,969 troy ounces of gold and 5,485 troy ounces of silver bullion were delivered to the EKJV.

The development of the EKJV resources continues to be the main focus of the company.

EAST KUNDANA JOINT VENTURE

Mining operations continued throughout the quarter at the Raleigh and Rubicon open cut pits.

Month		Tonnes	Estimated Ounces	Grade $(g/t)$
Jul 03	Raleigh	5,978	580	3.02
	Rubicon	16,304	9,339	17.82
Aug $03$	Raleigh	2,980	179	1.86
	Rubicon	23,917	7,898	10.27
Sep 03	Raleigh	11,604	4,065	10.90
	Rubicon	22,667	8,610	11.81
Total for September 03 Quarter		83,450	30,671	11.4
Total for June 03 Quarter		127,425	36,964	9.0
Total project to date		658,295	177,601	8.4

EKJV gold production for Sentember 03 Ouarter

Raleigh

• Raleigh stage 3 pit designed to a depth of 118 metres below surface was mined to a depth of 88 $\bullet$ metres by the end of the quarter.
• Production for the quarter totalled 20,563 dry tonnes at 7.3g/t containing 4,823 ounces compared to 43,290 dry tonnes at $12.2g/t$ Au containing 17,015 ounces for the previous quarter.

The performance of mining production estimates compared to reserves is:

Raleigh Pit 100% EKJV
	Production			Reserve			% Variation
	Tonnes	Grade	Gold	Tonnes	Grade	Gold	tonnes	gA	ounces
	tonnes	gД	ounces	tonnes	gА	ounces	%	%	%
September 03 Quarter	20,563	7.30	4,823	14,361	11.99	5,534	$+43$	-39	-13
April 03 Quarter	43,290	12.22	17.015	19,612	17.67	11.140	$+121$	$-31$	* 53
Year to 30 Sep 03	20,563	7.3	4.823	14.361	11.99	5.534	$+43$	-39	$-13$
Project To 30 Sep 03	321,606	8.99	92.981	141.677	14.12	64,334	$+127$	-36	$+45$

Rubicon

• Rubicon Stage 3 open pit designed to a depth of 132 metres below surface was mined to a depth of $\bullet$ 100 metres by the end of the quarter.
• Production for the quarter totalled 33,998 dry tonnes at $10g/t$ compared to 54,947 dry tonnes at 6.9g/t Au for the previous quarter.

The performance of mining production estimates compared to reserves is:

Rubicon Pit 100% EKJV
		Production			Reserve			Variation
	Tonnes	Grade	Gold oz	Tonnes	Grade	Gold oz	tonnes	g/t	ounces
	tonnes	g/t	ounces	tonnes	g/t	ounces	%	$\%$	%
September 03 Ouarter	22,667	11.81	8,610	5.509	1.91	2,109	$+311$	-1	$*308$
Previous Quarter	84.135	7.37	19.949	26,818	13.39	11,548	$+214$	-45	$+73$
Year to 30 Sep 03	22.667	11.81	8.610	5.509	1.91	2.109	$+311$	- l	$+308$
Project To 30 Sep 03	336.689	7.82	84,620	191,210	8.41	51,719	$+76$	-7	$+64$

MINERAL PROCESSING

• The EKJV project has recovered 165,142 ounces of gold since commencement of processing on $\bullet$ $15^{th}$ May 2002.
• 144,673 dry tonnes of ore at $6.64g$ /t was processed for the EKJV at the Kundana Mill during the $\bullet$ quarter compared to 115,795 dry tonnes at 8.66g/t the previous quarter. A total of 732,078 dry tonnes at 7.31 g/t has been processed project to date at an overall 95.94% recovery and 96.72% mill availability.
• Gold recovered for the quarter was 30,078 ounces at a 97.37% recovery compared to 30,929 ounces at a 95.96% recovery for the previous quarter.
• The processing campaign is expected to continue into March Quarter 2004. $\bullet$
• Gravity recoverable gold has increased to $66\%$ up from $54\%$ in the June Quarter 2003 reflecting increasing coarse gold content in fresh ore.

_____
Period	Ore	Gold	Bullion	Calc Head	Total
	processed	Recovered	outturn	grade (g/t)	recovery
	(dry tonnes)	(oz)	(oz)		(%)
Jul 03	59,092	10,9112	15,783	6.19	96.7
Aug $03$	49,461	8,835	8,138	5.97	97.6
Sep 03	42,961	10,331	8,048	8.04	97.9
Quarter	144,673	29,935	31,969	6.64	97.37
YTD	144,673	30,078	31,969	6.64	97.37
PTD	732,078	165,142	160,637	7.31	95.94

EKJV gold bullion produced

Ore on stockpile ahead of processing at the end of the quarter is estimated to be 40,000 tonnes at a grade of 6g/t for 8.064 ounces of contained gold.

Project Development

The Raleigh underground and Hornet open cut stage 1 developments are awaiting for the conclusion to the processing arrangements that continue to be under discussion.

The status of projects under study for development are:

Project	Status	First Ore
Raleigh Stage 3 Pit	Mining	June $03$
Raleigh Underground	Feasibility	July 04
Hornet Stage 1 Pit	Feasibility	March 04
Hornet Stage 2 Pit	Evaluation	December 04
Rubicon Stage 1 Underground	Pre-feasibility	September 04
Hornet Underground	Pre-feasibility	December 05
Pegasus Pit	Scoping	December 06
Pegasus Underground	Pre-feasibility	October 06

EXPLORATION

Discovery and resource delineation drilling at the Hornet-Rubicon-Pegasus mineralised zones was the main focus of joint venture activities during the quarter. Sterilisation drilling for infrastructure sites was also performed to assist scoping studies to be advanced. Drilling as part of geotechnical investigations for the Hornet and Rubicon underground studies were completed.

Period		Aircore	Reverse circulation			Diamond
	No. holes	Metres	No. Holes	Metres	No. Holes	Metres
Jul 03				1,660		754
Aug $03$		320	35	3,374		2,403
Sep 03		606		816		458
Sep Qtr	20	926	59	5,850	23	3,614
Yr to date	20	926	59	5,850	23	3,614

Seven Mile Hill Joint Venture (50%)

A programme of reconnaissance aircore drilling of 27 holes totalling 1262 metres was completed on tenementsM15/851 targeting a structural mineralised corridor.

		.
Hole name	Northing	Easting	From	To	Intersection	Gold
					metres	g/t
BAC081	6582500	349,290	33	35		1.32
BAC083	6,582,500	349,150	39	40		3.71
BAC086	6,582,310	349,300	51	55		1.78
BAC087	6,582,305	349,253	36	37		1.03
			41	42		1.03
			46	48		2.11
			56	57		1.45
BAC102	6,582,100	349,300	46	47		3.08

Significant intersections greater than $1g/t$ gold

RESOURCES and RESERVES

EKJV Resource inclusive of reserves remaining as at 30 September 2003

OREBODY	MEASURED		INDICATED		INFERRED			TOTAL RESOURCE
	RESOURCE (tonnes)	(g/t)	RESOURCE (tonnes)	(g/t)	RESOURCE (tonnes)	(g/t)	(tonnes)	(g/t)	(ounces)
IPOPE JOHN	1,000	1.3	11,000	1.1	0	0.0	12,000	1.1	431
RALEIGH SURFACE	0	0.0	28,000	54.6	2,000	2.5	30,000	51.1	49,313
RALEIGH UNDERGROUND	0	0.0	487,000	26.8	445,000	17.4	932,000	22.3	668,562
MAIN VEIN RALEIGH UNDERGROUND HANGINGWALL VEIN	0	0.0	$\overline{0}$	0.0	6,000	35.4	6,000	35.4	6,829
HORNET SURFACE	0	0.0	581,000	2.5	1,000	1.8	582,000	2.5	46,757
HORNET UNDERGROUND	0	0.0	1,017,000	7.0	706,000	5.0	1,723,000	6.2	342.373
RUBICON SURFACE	0	0.0	43,000	10.7	$\mathbf 0$	0	43,000	10.7	14,793
RUBICON UNDERGROUND	0	0.0	390,000	8.9	507,000	6.3	897,000	7.4	214,288
PEGASUS SURFACE	0	0.0	191,000	3.6	381,000	3.2	572,000	3.3	61,305
PEGASUS UNDERGROUND	$\overline{0}$	0.0	219,000	6.6	500,000	6.6	719,000	6.6	152,726
DRAKE	0	0.0	$\mathbf 0$	0.0	100,000	2.0	100,000	2.0	6,430
STOCKPILE – ROM PAD	36,000	6.3	0	0.0	0	0.0	36,000	6.3	7,292
STOCKPILE - ADJACENT PITS	4,000	6.0	$\overline{0}$	0.0	0	0.0	4,000	6.0	772
STOCKPILE – SUBGRADE	17,000	0.6	0	0.0	0	0.0	17,000	0.6	328
TOTAL	58,000	4.5	2,967,000	9.9	2,648,000	7.3	5,673,000	8.6	1,572,197

(Prepared by M.Bampton and R. Cooper Placer Dome Asia Pacific Ltd)

EKJV RESERVES REMAINING AT 30 SEPTEMBER 2003

OREBODY	PROVED RESERVE		PROBABLE RESERVE			TOTAL RESERVE		TOTAL RESERVE AT 30 JUN 03
	(tonnes)	(g/t)	(tonnes)	(g/t)	(tonnes)	(g/t)	(ounces)	(tonnes)	(g/t)	(ounces)
POPE JOHN	$\theta$	0.0	0	0.0	$\overline{0}$	0.0	0	0	0.0	$\circ$
RALEIGH SURFACE	$\overline{0}$	0.0	26,000	54.4	26,000	54.4	45,474	32,000	50.7	52,161
RALEIGH UNDERGROUND MAIN	$\overline{0}$	0.0	965,000	12.1	965,000	12.1	45,474	965,000	12.1	375,408
VEIN RALEIGH UNDERGROUND HANGINGWALL VEIN	$\overline{0}$	0.0	$\Omega$	0.0	$\Omega$	0.0	0	$\Omega$	0.0	0
HORNET SURFACE HORNET UNDERGROUND	$\overline{0}$ 0	0.0 0.0	223,000 940,000	3.9 6.3	223,000 940,000	3.9 6.3	27,962 190,397	223,000 940,000	3.9 6.3	27,962 190,397
RUBICON SURFACE RUBICON UNDERGROUND*	0 0	0.0 0.0	26,000 168,000	15.3 8.5	26,000 168,000	15.3 8.5	12,790 45,911	58,000 168,000	14.5 8.5	27,039 45,911
PEGASUS SURFACE PEGASUS UNDERGROUND	0 $\overline{0}$	0.0 0.0	$\Omega$ 119,000	0 7.0	$\Omega$ 119,000	0.0 7.0	0 26,782	$\Omega$ 119,000	0.0 7.0	$\Omega$ 26,782
ISTOCKPILES - ROM PAD STOCKPILES - ADJACENT PITS	36,000 4,000	6.3 6.0	0 0	0 0	36,000 4,000	6.3 6.0	7,292 772	12,000 38,000	7.2 7.3	2,778 8,919
TOTAL	40,000		$6.3$ 2,467,000	9.1	2,507,000	9.1	732,786	2,555,000	9.2	757,356

Prepared by M.Bampton (Placer Dome Asia Pacific Ltd)

Note* Preliminary reserve estimates for projects currently undergoing a scoping or pre-feasibility study.

Notes:

New resource estimate for Pope John

$\bullet$ Raleigh Open Pit reserve based on finalisation of stage 3 pit.

Raleigh Underground adjusted for finalisation of stage 3 pit. $\bullet$

reaccidance with Listing Rule 5.10 of the Australian Stock Exchange Limited, the geological information in this report which relates to mineral resources and ore reserves, is based upon information complied by Matthew Bamp $\bullet$ Reporting of Mineral Resources and Ore Reserves.

Oretek

Oretek have advised the Company that they have now successfully completed phase one of their study into the removal of nickel, copper and cobalt from acid leachate solutions performed on a lateritic ore. A process flowsheet has been developed to enable each metal ion to be selectively recovered from solutions containing significantly higher concentrations of iron and aluminium. This work was conducted by Lakefield Oretest Pty. The company is now assessing these results to determine the next phase of this study.

Yours faithfully

F O'Kane Director

Appendix 5B

Mining exploration entity quarterly report

Name of entity

RAND MINING NL

ACN or ARBN

004 669 658

Quarter ended (current quarter)

30 September 2003

Consolidated statement of cash flows

	Cash flows related to operating activities		Current quarter \$A=000	Year to date (3 months) \$A=000
1.1	Receipts from product sales and related debtors		2,287	2,287
1.2	Payments for (c) production	(a) exploration and evaluation (b) development (d) administration (note 2)	(59) (47) (1,046) (285)	(59) (47) (1,046) (285)
1.3	Dividends received
1.4	Interest and other items of a similar nature received		6	6
1.5	Interest and other costs of finance paid
1.6	Taxes paid
1.7	Reimbursement of Exploration Costs
	Net Operating Cash flows		856	856
	Cash flows related to investing activities
1.8	payment for purchase of:	(a) prospects (b) equity investments (c) other fixed assets	(174)	(174)
1.9	Proceeds from sale of:	(a) prospects (b) equity investments (c) other fixed assets
	1.10 Loans to other entities (note 3)		(140)	(140)
	1.11 Loans repaid by other entities
		1.12 Other (provide details if material) Loans from other entities
	Net investing cash flows		(314)	(314)

	1.13 Total operating and investing cash flows (brought forward)	542	542
	Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc.
	1.15 Proceeds from sale of forfeited shares
	1.16 Proceeds from borrowings	213	213
1.17	Repayment of borrowings
1.18	Dividends paid
	1.19 Commissions on capital raising
	Net financing cash flows	213	213
	Net increase (decrease) in cash held	755	755
1.20	Cash at beginning of quarter/year to date	2,582	2,582
	1.21 Exchange rate adjustment to 19
	1.22 Cash at end of quarter	3,337	3,337

Non-cash financing and investing activities

2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

$N/A$

2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

$N/A$

Financing facilities available

Add notes as necessary for an understanding of the position.

		Amount available $A = 000$	Amount used $A=000$
3.1	Loan facilities	$\mathbf{a}$
	3.2 Credit standby arrangements		$\overline{a}$

Estimated cash outflows for next quarter

		$$A=000$
4.1	Exploration and evaluation	166
4.2	Development	827
	Total	993

Reconciliation of cash

	Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.	Current quarter $A = 000$	Previous quarter $$A=000$
5.1	Cash on hand at bank	1.094	1.059
5.2	Deposits at call	97	97
5.3	Bank overdraft
5.4	Other $-$ gold bullion on hand	2,146	1.426
	Total: cash at end of quarter (item 1.22)	3.337	2.582

Changes in interest in mining tenements

		Tenement reference	Nature of interest (note(4))	Interest at beginning of quarter	Interest at end of quarter
-6.1	Interests in mining tenements relinquished, reduced or lapsed
6.2	Interest in mining tenements acquired or increased

Issued and quoted securities at end of current quarter
Description includes rate of interest and any redemption or conversion rights together with process and dates

		Number issued	Number quoted	Par value (cents)	paid-up value (cents)
7.1	Preference securities (description)
7.2	Issued during quarter			×.
7.3	Ordinary Securities	38,260,813	38,260,813	20 cents	20 cents
7.4	Issued during quarter			×	u.
7.5	Convertible debt securities (description)
7.6	Issued during quarter
7.7	Options (description)	2,300,000		Exercise Price 20 cents	Expiry Date 30 April 2005
7.8	Issued during quarter				u.
7.9	Exercised during quarter
7.10	Expired during quarter			a.	u.
7.11	Debentures (totals only)
7.12	Unsecured notes (Totals only)

Compliance statement

• $\mathbf{1}$ This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Law or other standards acceptable to ASX (see note 6).
• $\overline{2}$ This statement does give a true and fair view of the matters disclosed.

Sign here: ......................................

Print name: ....................................

Notes

• $\mathbf{1}$ The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.
• $\overline{2}$ The aggregate amount of payments to suppliers and employees (item 1.2) made to directors of the entity and its related entities, associates of directors and associates of the entities (specified parties) must be disclosed by way of note with additional explanations necessary for an understanding of the transactions.

\$55,000 was paid to STT Pty Ltd for salaries and management fees for the September quarter.

3 The aggregate amount of loans (item 1.10) made to specified parties must be disclosed by way of note.

The aggregate amount of loans made to specific parties are as follows:

Oretek Limited	52,077
Tribune Resources NL	87,480
	139,557

• 4 The nature of interest (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.
• 5 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.
• 6 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.