A three hole Phase 1 program is initially planned to test each...

A three hole Phase 1 program is initially planned to test each of the currently defined high-priority targets at Oak Dam South, Canegrass South and Winjabbie East Prospects

?Xstrata Copper plans to commence drilling at Oak Dam South February 2011 subject to availability of a suitable rig and written confirmation of relevant site clearances

?Both Argo and Xstrata Copper have planned for success and are awaiting written confirmation of a number of Phase 2 drill sites verbally approved during recent cultural heritage clearance surveys

?Xstrata Copper plans to finalize 3-D modeling of entire EL4164, including the proven fertile IOCG system at Emmie North Prospect

?3-D modeling at Emmie North Prospect will be integrated with MT survey results when to hand and potential further drilling assessed


Two stage agreement:
Stage One grants Xstrata Copper the opportunity to earn a 51%
interest in Intercept Hill EL4164 by expending A$4 million within 3.5 years;

Stage Two
allows Xstrata Copper to earn an additional 24% (to take its interest to 75%) by expending
an additional A$12 million within a further 4 years; expenditures may be brought forward