Mt Watson Deposit - Highly Encouraging Soil Sampli

After a period of relative quiet, this looks promising.

MATRIX METALS LIMITED 2002-09-23 ASX-SIGNAL-G

HOMEX - Perth

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Matrix Metals Limited is pleased to announce the first results from a
soil sampling program being undertaken around the Mt Watson resource
area.

Matrix's exploration team has been undertaking a program of mapping
and soil sampling, focusing on the strike extension areas that have
been identified around the existing Mt Watson deposit, in preparation
for a concerted drilling program which will target a major increase
in the Company's oxide copper resources.

The first results from the soil sampling program has identified a
number of highly prospective targets, with the amplitude and width of
the anomalies considered very significant.

The program has so far comprised sampling lines across areas to the
south and north east of the existing resource areas that have been
interpreted to be prospective for additional copper mineralisation.

An area 50 metres to the south of the existing Mt Watson deposit was
soil sampled and a copper anomaly identified over a strike length of
900 metres. The anomaly varies in width between 30 to 40 metres with
values up to 350 parts per million (ppm) copper. This anomaly is
supported by a previous drill intersection of 10m @ 1.0% copper.
Based on the existing geological knowledge of the area and the drill
intersection, anomalous values in this range are considered highly
significant.

In addition, three other areas directly along strike to the north of
Mt Watson have also been sampled with again, significant results
reported. These areas, now known as Boomerang 1, 2, & 3, reported
anomalies with strike lengths of 250 metres, 250 metres and 300
metres respectively. Values of up to 700ppm copper were reported
with the width of the anomalies ranging from 30 to 90 metres.

The reconnaissance soil lines over the Southern and Boomerang areas,
together with earlier drill coverage in the resource area, confirm
encouraging surface copper indications occur over a total strike
length of approximately 5 kilometres.

Infill and expanded soil sampling will be completed in all these new
areas of interest prior to the commencement of the first phase of the
RC drilling program scheduled to commence in October. This initial
scout drilling program will focus on the area to the south of the
existing Mt Watson deposit and to the north at Boomerang 1, 2 & 3.

Upon completion of the initial scout drilling program, the second
phase of the RC drilling program will commence and will comprise
resource definition drilling across all areas of confirmed
mineralisation, including the previously identified areas directly
east and west of the Mt Watson deposit.

A Chapman
CHIEF EXECUTIVE OFFICER

The information in this report that relates to Mineral Resources and
Ore Reserves is based on information compiled by Messrs Phil Frank
and Bob Dennis. Mr Frank is a Fellow of the Australasian Institute of
Mining and Metallurgy and is employed by PH Frank and Associate and
Mr Bob Dennis is a Member of the Australasian Institute of Mining
and Metallurgy and a full-time employee of the Company. Both Messrs
Frank and Dennis have sufficient experience which is relevant to the
style of mineralisation and the type of deposit under consideration
and to the activity which they is undertaking to qualify as a
Competent Person as defined in the 1999 edition of the "Australasian
Code for Reporting of Mineral Resources and Ore Reserves. Messrs
Frank and Dennis, each consent to the inclusion in the report of the
matters based on information in the form and context in which it
appears.