The Rothsay project is owned by CWG Central West Gold
It will be interesting to see what happens now!!!!!!!!!!!!!! THIS IS A PRIORITY ITEM 30 May 2002 Part 1/1 -------- THUNDELARRA EXPLORATION LIMITED ------------------------------- HOMEX - Perth ------------------------- Signs Agreements on Rothsay & Water Tank Gold Projects The Directors of Thundelarra Exploration Ltd are pleased to announce the signing of two important agreements concerning the Rothsay and Water Tank gold projects. The Rothsay Agreement allows for the immediate commencement of the scoping study into the mining of the highgrade underground ore and subsequent processing at the Gullewa gold plant located approximately 90 kilometres north west of Rothsay. The Water Tank Agreement gives Thundelarra the opportunity to acquire a 100% interest in a gold project with well defined drill targets in the Norseman goldfield adjacent to Croesus Mining NL's Daisy and Daisy South prospects. This goldfield has produced over 5.5 million ounces since its discovery in 1894 and continues to produce new significant highgrade gold discoveries. The long awaited renewed interest in the gold market has given Thundelarra the opportunity to re-assess the gold potential of its 100% owned projects and to look at new prospects particularly near existing gold mining operations. The Rothsay joint venture and the existing Warriedar and Davyhurst gold ventures are also very important as they are capable of generating a cash flow for the company in the short to medium term with limited funding required from Thundelarra. ROTHSAY PROJECT Under the terms of the Rothsay Agreement, Menzies Gold Ltd (Menzies) and Thundelarra will jointly fund exploration and metallurgical test work to allow the completion of a scoping study to mine, truck and process the highgrade underground ore (estimated cost $150,000) at the Menzies owned and operated Gullewa gold plant. At the successful completion of this study and when Thundelarra has earnt its 70% equity in the project from Central West Gold NL, Menzies will then have the right to earn 50% of Thundelarra's equity in the project by completing a Final Feasibility Study by May 2003 and to commence production by November 2003. Thundelarra's remaining 35% equity will be free carried during the feasibility study and carried to commencement of production. The carried expenditure will be refunded from 70% of Thundelarra's cash inflow from the project. The Rothsay project has an Indicated/Inferred Resource of 69,000 ounces of gold at an estimated grade of 11 g/t using a 7 g/t cut off and a 1.2m minimum mining width. There is good potential to increase this resource by further drilling both down dip and along strike (see Rothsay Long Section). Information in this report, insofar as it relates to resource estimation and exploration activities, is based on information compiled by Mr Brian Richardson who is a Corporate Members of the Australasian Institute of Mining and Metallurgy and who have more than ten years experience in the field of the activity being reported on. This report accurately reflects the information compiled by these members.
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