Ann: June Quarterly Activities Report , page-13

Obviously there was disappointment with Oak Dam rubbed out and the market didn't like the fact they have to wait for September for results. But, im not concerned.

Winjabbie looks to have intersected some form of Skarn. They can contain all sorts or nothing but can run for KM's.

The fact is that it holds all the ingredience for mineralisation. So Cu, Au, Ag, Pb etc...

So im happy with Winjabbie, spices things up.

I would expect lower grades in a skarn but can run over KM's forming a very very nice deposit. So grades like a few metres of 0.50% Cu, 2.10g/t Ag etc...

Big Cadia (Newcrest Mining) is a perfect example of a Skarn deposit.

Skarns can also form near large ore bodies, even Olympic Dam and Prominate Hill have Skarn features. The fact that magnetite is featured confirms there must be iron oxide minerals.

There is also a Chalcopyrite vein present in the photos, which appear in massive volcanogenic sulfide ore deposits and sedimentary exhalative deposits. The veins form by deposition of copper during hydrothermal circulation.

So again, very encouraging and points to Lead and Zinc also.

So not bad at all.

They will drill again at Winjabbie thats for sure, I confirmed this with Hugh today. Hugh is also keen to get some drilling done at Canegrass. Which although is scattered is Hematite in nature.

Whats next? Once results are in and Xstrata know the garnet-pyroxene ratio they will be able to better determind age and what zone of Skarn they are in, there are about 3-4 zones in a skarn all different in grades of minerals. Its basiclly like drilling along a old lava flow underground.

So no need to panic, keep your eye on GUN, Good results there will be further encouraging.