16 November 2010 The Company Announcements Office Australian Securities Exchange Limited Drilling programmes frustrated by heavy rainfall across Queensland, South Australia & Victoria BACKGROUND: Heavy rainfall events were experienced across much of eastern Australia over the weekend of 13-15 November 2010. Disruption occurred to Minotaur?s drilling campaigns both underway and about to start, with programmes having been adversely affected in Queensland, South Australia and, to a minor degree, in Victoria. CLONCURRY IOCG PROJECT, QUEENSLAND: A four-hole programme to intersect different IOCG1 geophysical targets in the Cloncurry district started late in October2. The first hole, at the Gypsy Plains prospect, was successfully completed on 12 November. Rapid deterioration in weather conditions that day presaged the approach of the annual wet season, and an operational decision was taken to immediately suspend the drill program. Heavy rains since have caused the Cloncurry River to flow preventing access to drillsites and vindicating the operation?s decision. Had the decision to decamp been delayed overnight it is now probable the rig would have been marooned on the project side of the Cloncurry River, for many weeks and possibly not until after the ?wet?. In those circumstances the Joint Venture?s3 cost exposure could have been significant, but has been averted. Remaining work in the plan will be resumed after the North Queensland ?wet? has ended, in the new year. Meanwhile, core from the Gypsy Plains drillhole (MNDDH016) will be dispatched to Minotaur?s office for close inspection and assessment. MUTOOROO MAGNETITE PROJECT, SOUTH AUSTRALIA: A multi-purpose drill rig was scheduled to start 15 November on an eight hole programme on five regional ironstone targets exhibiting strong magnetism, indicating excellent potential for magnetite iron mineralisation4.MINOTAUR EXPLORATION LTD Minotaur Exploration Limited, MEP ASX Release 16 November 2010 Page 2 of 2 A regional rain event over the weekend resulted in over 100mm of rain at the project site, rendering station tracks impassable to heavy vehicles, thereby preventing entry to the sites. Station owners advise that at least two weeks of continual fine weather is required before tracks can be used without sustaining damage. The prognosis for continuing clear weather in the shortterm is low, so a decision has been made to defer the work programme until after the new year, by which time stable summer conditions will prevail. MT TARRENGOWER, GOLD PROSPECT, VICTORIA: Diamond drilling started at Mt Tarrengower, near Maldon, on 12 November. Rain across central Victoria on 13 November was intense and widespread, causing localised flooding. The topography at Mt Tarrengower is steep so run-off is immediate, the ground competent and work time lost amounted to only 1.5 days. Drilling resumed on 15 November and the initial hole is now at 216m downhole, approaching the target zone at 300m. Core recovery is excellent and downhole surveys show minimal trajectory deviation from the design alignment.
MEP Price at posting:
24.0¢ Sentiment: None Disclosure: Held
