2002releases

Scroll down for other 2002 Releases

1st August 2002
Fourteen carats of Ruby per Tonne in Trench 11 continuation

Fourteen carats per tonne of uncut ruby has been obtained from the continuation of Trench 11 (Section I) on the Gloucester Ruby Project. The largest stone obtained was 2.14 carats, gem quality, and of deep pink colour.

The sample processed comprised 149 tonnes of gravel. Gravel thickness ranged from 1.2 to 1.6 metres, averaging 15 metres, with overburden averaging 1.5 metres. The trench was 20 metres long, and its width was 2.5 metres. The sample yielded 2,145 carats of uncut ruby. The sample is a continuation of the recently dug Trench 11 on a raised terrace on the southern bank of the river flats. These older high level gravels were deposited before the recent alluvial gravels, and rubies contained within the seventy metres of gravels trenched (Sections F,G, H and I) are additional to the inferred resource of 14 million carats (2.3 million tonnes at 6.3 carats per tonne).

As the Company has reached the limits of its approved 10,000 tonne bulk sampling program, further extensions to the trench to determine the limit of this terrace require lodgement of a new Statement of Environmental Effects, which will take some weeks for approval.

In the interim, approval was granted for a series of exploration pits to indicate the extent of the Upper Terrace gravels beyond the end of the trench. Nine pits were dug in a grid with spacings of about 100 metres, centred on the end of Trench 11. Eight of these intersected gravels, all at least a metre in thickness. About ten tonnes of gravel was extracted from each pit for processing in the plant.

Some gravels have been processed, and concentrates are currently being sorted.

The following statements apply in respect of information in this report that relates to Mineral Resources and Exploration Results:
1. The information is based on and accurately reflects information compiled by Peter John Kennewell, who is a corporate member of the Australasian Institute of Mining and Metallurgy.
2. Peter John Kennewell is employed by Kennent Pty Ltd, a consultant to the Company. Peter John Kennewell has relevant experience in relation to the mineralisation being reported on to qualify as a competent person as defined in the Australasian Code for Reporting of Identified Mineral Resources and Ore Reserves.
3. Peter John Kennewell consents to the inclusion in the report of the matters based on their information in the form and context in which it appears.

For further information please contact Peter Kennewell or Walter Penninger on (02) 9482 4655.

Yours faithfully,

Peter Kennewell,
Managing Director

11th July 2002
16 Carats of Ruby per Tonne in Trench 11 continuation

Sixteen carats per tonne of uncut ruby has been obtained from the continuation of Trench 11 (Section H) on the Gloucester Ruby Project. The largest stone obtained was 2.03 carats, gem quality, and of deep pink colour.

The sample processed comprised 113 tonnes of gravel. Gravel thickness ranged from 1 to 2.2 metres, averaging 1.5 metres, with overburden averaging 1.4 metres. The trench was 22 metres long, and its width was 2 metres. The sample yielded 1,826 carats of uncut ruby.

The sample is a continuation of the recently dug Trench 11 on a raised terrace on the southern bank of the river flats. These older high level gravels were deposited before the recent alluvial gravels, and rubies contained within the fifty metres of gravels already trenched (Sections F,G and H) are additional to the inferred resource of 14 million carats (2.3 million tonnes; at 6.3 carats per tonne).

Results from Section I are expected shortly.

The following statements apply in respect of information in this report that relates to Mineral Resources and Exploration Results:
1. The information is based on and accurately reflects information compiled by Peter John Kennewell, who is a corporate member of the Australasian Institute of Mining and Metallurgy.
2. Peter John Kennewell is employed by Kennent Pty Ltd, a consultant to the Company. Peter John Kennewell has relevant experience in relation to the mineralisation being reported on to qualify as a competent person as defined in the Australasian Code for Reporting of Identified Mineral Resources and Ore Reserves.
3. Peter John Kennewell consents to the inclusion in the report of the matters based on their information in the form and context in which it appears.

For further information please contact Peter Kennewell or Walter Penninger on (02) 9482 4655.

Yours faithfully,

Peter Kennewell,
Managing Director

31st May 2002
19.2 carats of ruby per tonne in Trench 11

Nineteen carats per tonne of uncut ruby (four grains per tonne), has been obtained from Trench 11 (Section G). The largest stone obtained was 2.11 carat, flawless and of good colour. 1,554 carats of uncut ruby were recovered from 81 tonnes of gravels treated. Of these, 26 carats were of size above 4.5 mm.

The sample processed comprised 81 tonnes of gravel. The gravel thickened into the terrace towards the end of the trench, and ranged from 0.5 metres at the start to 2.4 metres at the end of the sample. Overburden averaged 1.5 metres. The trench was about three metres wide. All tracers (imitation rubies) added to the stockpile of gravels were recovered from the sample, demonstrating that the plant was working efficiently.

This sample repeated five metres of the end of the recently dug Trench 11 (Section F), and continued for an additional eight metres, aiming to confirm the initial result and assess its continuity. This sample was testing an accidentally discovered raised terrace overlying basement rocks on the southern bank of the river flats. This Upper Terrace has resource potential additional to the river flats, which carry most of the inferred resource of 14 million carats (2.3 million tonnes at 6.3 carats per tonne).

Instead of barren rotten granite, the Upper Terrace has been confirmed to contain ruby bearing gravels. These older and high level gravels were deposited possibly millions of years before the recent alluvial gravels. This Upper Terrace, when tested previously, yielded lower grades than the recent alluvial gravels and was different in nature to the recent alluvials, containing boulders of rotten granite and basalt with a clayey matrix. This trench confirms that in some places it contains far higher quantities of ruby, as well as the heavy minerals spinel and ilmenite, with lower corundum values.

Rubies in these raised gravels appear to have originated from a different source from those in the adjacent recent alluvials, as they contain a higher proportion of higher quality Red and Pink 1 and 2 stones. The location of the source of this high quality ruby is still uncertain, but prospecting activities in the 1970s found rubies in swamps about two kilometres to the south of these gravels.

A ground magnetic survey to determine the location of areas of the Upper Terrace with high ilmenite content, and in turn possibly high ruby content, is planned as soon as equipment is available. The trench will be continued for approximately eighty metres, after which an additional six prospecting holes will be dug, sampling about twenty tonnes from each hole to determine the extent and grade of these Upper Terrace gravels.

Yours faithfully,

Peter Kennewell,
Managing Director

14th May 2002
Ruby exploration recommences

Bulk sampling at the Gloucester Ruby Project has recommenced to allow further planning for the 50 000 tonne per year mining of ruby, which will commence when approvals are granted.

Work will concentrate on the Upper Terrace, from which Trench 11 produced a grade of twenty-five carats of ruby per tonne over its last 20 metres. The trench will be extended by a further 80 metres to determine the nature, extent and ruby grade of these higher grade Upper Terrace gravels. A series of exploration pits spaced at about 50 metre intervals will then be used to further map the thicker and richer parts of the gravels, with an aim of demonstrating an inferred resource of ruby suitable for a higher grade mining operation than was initially planned.

Initial results from this trenching program are expected shortly.

For further information please contact Peter Kennewell or Walter Penninger on (02) 9482 4655

Yours faithfully,

Peter Kennewell,
Managing Director

10th May 2002
Staggy Creek, Monte Christo diamond results

The Company's continuing bulk sampling program for diamonds at the Staggy Creek Diamond Mine (Sample 2002/1) has yielded a grade of 13 carats per hundred tonnes from the 70 tonne weathered portion of a 100 tonne sample of gas milled and corroded ferruginous quartz and sand. 32 tonnes of the sample did not break up during processing, and will be crushed and reprocessed in due course.

The sample was extracted from a trench adjacent to the eastern contact of a ten metre wide "dolerite" intrusion which extends through the diamond deposit. Recent Calweld drilling has shown this sampled high grade part of the deposit, previously sampled at 32 carats per hundred tonne, to be six metres thick where drilled. This result confirms the extent of a high grade zone beneath an area of several hundred square metres. Further pitting and trenching of this deposit is planned shortly.

The recovered 54 gem quality diamonds weighed 8.7 carats, with an average size of 0.16 carats.

Sample 2001/6, also from Staggy Creek, comprised 144 tonnes of white sericitic altered granitic tuffisite, and possibly overlies the high grade deposit. It yielded 3.1 carats per hundred tonnes of gem quality diamonds, with 33 stones weighing 4.4 carats. The stones have a characteristic glassy appearance, and are distinctive from those in the high grade zone. They are also slightly smaller, averaging 0.13 carats. The sample came from the same trench as 2002/1, but on the western side adjacent to the intrusion.

Sample 2002/2 was taken from an extensive fault zone about one metre wide on the northern face of the Monte Christo Diamond Mine, at Bingara. A sample of 90 tonnes was carefully mined to avoid contamination, and yielded four gem quality diamonds weighing 0.6 carats, for a grade of 0.67 carats per hundred tonnes.

The following statements apply in respect of information in this report that relates to Mineral Resources and Exploration Results:
1. The information is based on and accurately reflects information compiled by Peter John Kennewell, who is a corporate member of the Australasian Institute of Mining and Metallurgy.
2. Peter John Kennewell is employed by Kennent Pty Ltd, a consultant to the Company. Peter John Kennewell has relevant experience in relation to the mineralisation being reported on to qualify as a competent person as defined in the Australasian Code for Reporting of Identified Mineral Resources and Ore Reserves.
3. Peter John Kennewell consents to the inclusion in the report of the matters based on their information in the form and context in which it appears.

For further information please contact Peter Kennewell or Walter Penninger on (02) 9482 4655.

Yours faithfully,

Peter Kennewell,
Managing Director

30th April 2002
Two Stage Development of Ruby Project to proceed

Following the successful completion of our 10,000 tonne bulk sampling program I am pleased to advise that the Company is to proceed with a two stage development of the Company’s alluvial ruby deposit.

Stage 1 involving small scale production will commence as soon as Council development approvals and relevant approvals are obtained and will use the existing plant and equipment which is already onsite. Stage 1 will have a throughput of around 50,000 tonnes per annum and with expected production of around 400,000 rough carats of ruby and 400,000 rough carats of sapphire will provide sufficient production to allow the Company to establish firm markets both locally and internationally for the large scale Stage 2 development.

During Stage 1 necessary approvals for Stage 2 development will be sought and the larger processing plant and associated facilities will be acquired. Stage 2 will commence once necessary approvals have been obtained which are expected in mid to late 2003. Stage 2 will have a capacity of over 500,000 tonnes per annum on a one shift basis with production of around 3-4 million rough carats of ruby and 3-4 million rough carats of sapphire.

I am confident that further exploration during 2002 will establish additional alluvial deposits of ruby and hopefully help in identifying potential primary sources of Ruby in the region.

Yours faithfully

Walter Penninger,
Chairman

19th April 2002
Ruby inferred resource up to fourteen million carats

Inferred resources of uncut ruby at the Gloucester Ruby Project have been increased to fourteen million carats (2.3 million tonnes at a grade of 6.2 carats per tonne). This results from the recently completed Trench 11, the final trench of the bulk sampling program. The trench added an inferred resource of two million carats of uncut ruby, (300,000 tonnes at 8.1 carats per tonne).

These inferred resources are dominantly along 3.5 kilometres of the alluvial flats, and an additional 3 km of river flats and raised terraces are present below the area tested. As rubies have also been found in this lower part of the river flats, the possibility of further extensions to the ruby deposit appear good.

The Upper Terrace ruby deposit, intersected in the last 20 metres of Trench 11 and yielding grades of twenty five carats per tonne of uncut ruby from gravels up to 1.6 metres thick, has not yet been tested thoroughly enough to be included in this inferred resource.

The following statements apply in respect of information in this report that relates to Mineral Resources and Exploration Results:
1. The information is based on and accurately reflects information compiled by Peter John Kennewell, who is a corporate member of the Australasian Institute of Mining and Metallurgy.
2. Peter John Kennewell is employed by Kennent Pty Ltd, a consultant to the Company. Peter John Kennewell has relevant experience in relation to the mineralisation being reported on to qualify as a competent person as defined in the Australasian Code for Reporting of Identified Mineral Resources and Ore Reserves.
3. Peter John Kennewell consents to the inclusion in the report of the matters based on their information in the form and context in which it appears.

For further information please contact Peter Kennewell or Walter Penninger on (02) 9482 4655.

Yours faithfully,

Peter Kennewell,
Managing Director

19th February 2002
Trench 11 (Section E) yields 1354 carats of uncut ruby

Trench 11 (Section E) has yielded 7.5 carats of ruby per tonne. Recovery was 271 grams (1,354 carats) of uncut ruby from 180 tonnes of gravels. The largest stone recovered was a 3.2 carat pink of low gem quality. 9.1 grams (46 carats) of stones (ie 3.4%) were above 4.5 mm in size. Section E extends for 23 metres of the trench, from 157 to 180 metres. It was 3 metres wide and penetrated 0.8 metres of orange gravels of the Middle Terrace overlain by 0.6 metres of black gravels of the Recent Alluvials. Overburden averaged 1.3 metres

The material comes from the more recent gravels underlying the river flats on which the inferred resource is located, and not the older gravels of the Upper Terrace, which were incised by this sample. These produced a higher grade of 25 carats per tonne, and came from the adjacent (Section F) (180 to 200 metres).

Additional exploratory work is planned to investigate the extent of this high grade deposit, commencing within the next month.

Trench 11 is 200 metres long and located 500 metres downstream from the nearest previously dug trench. Between 0 and 180 metres (Sections A to E) (excluding the Upper Terrace) it produced 1,863 tonnes of recent river gravels. 15,040 carats of ruby were produced at a grade of 8.1 carats per tonne. The Upper Terrace which was being eroded by the recent alluvials, was excavated between 180 and 200 metres, yielding a higher grade of 25 carats per tonne from 171 tonnes of gravels.

The following statements apply in respect of information in this report that relates to Mineral Resources and Exploration Results:
1. The information is based on and accurately reflects information compiled by Peter John Kennewell, who is a corporate member of the Australasian Institute of Mining and Metallurgy.
2. Peter John Kennewell is employed by Kennent Pty Ltd, a consultant to the Company. Peter John Kennewell has relevant experience in relation to the mineralisation being reported on to qualify as a competent person as defined in the Australasian Code for Reporting of Identified Mineral Resources and Ore Reserves.

For further information please contact Peter Kennewell or Walter Penninger on (02) 9482 4655.

Yours faithfully,

Peter Kennewell,
Managing Director

14th February 2002
Trench 11 (Section D) yields 8.5 carats per tonne of uncut ruby

Trench 11 (Section D) has yielded 8.5 carats of ruby per tonne.Recovery was 734 grams (3,670 carats) of uncut ruby from 432 tonnes of gravels. The largest stone recovered was a 3.4 carat pink of gem quality. 16.5 grams (83 carats) of stones (ie 2.3%) were above 4.5 mm in size. Section D extends for 64 metres of the trench, from 93 metres to 157 metres. It was 3 metres wide and penetrated 0.8 metres of orange gravels of the Middle Terrace overlain by 1 metre of blackgravels of the Recent Alluvials. Overburden was 1.2 to 2 metres.

As in Section C, the material comes from the more recent gravels underlying the river flats on which the inferred resource is located,
and not the older gravels of the Upper Terrace, which were recently sampled. These produced a higher grade of 25 carats per tonne, and came from the end of this trench (Section F) (180 to 200 metres). Plant concentrates from the intervening Sections E are currently being processed.

Trench 11 is located 500 metres downstream from the nearest previously dug trench and is outside the area of the previously announced inferred resource.

For further information please contact Peter Kennewell or Walter
Penninger on (02) 9482 4655.P Kennewell
MANAGING DIRECTOR

6th February 2002
Trench 11 (Section C) yields 10.3 carats per tonne of uncut ruby

Trench 11 (Section C) has yielded 10.3 carats of ruby per tonne. Recovery was 702 grams of uncut ruby from 342 tonnes of gravels. The largest stone recovered was a 2.5 carat pink of top quality. 22.9 grams of stones (ie 3.3%) were above 4.5 mm in size. Section C extends from 65 metres to 93 metres of the trench. It was 4 metres wide and penetrated 0.7 metres of orange gravels of the Middle Terrace overlain by 1.2 metres of black gravels of the Recent Alluvials. Overburden was 1.2 to 1.6 metres

The material comes from the more recent gravels underlying the river flats on which the inferred resource is located, not the older gravels of the Upper Terrace which were recently sampled, producing a higher grade of 25 carats per tonne. The older gravels came from the end of this trench (Section F) (180 to 200 metres). Plant concentrates from the intervening Sections D and E are currently being processed.

Trench 11 is located 500 metres downstream from the nearest previously dug trench and is outside the area of the previously announced inferred resource

The following statements apply in respect of information in this report that relates to Mineral Resources and Exploration Results:
1. The information is based on and accurately reflects information compiled by Peter John Kennewell, who is a corporate member of the Australasian Institute of Mining and Metallurgy.
2. Peter John Kennewell is employed by Kennent Pty Ltd, a consultant to the Company. Peter John Kennewell has relevant experience in relation to the mineralisation being reported on to qualify as a competent person as defined in the Australasian Code for Reporting of Identified Mineral Resources and Ore Reserves.

For further information please contact Peter Kennewell or Walter Penninger on (02) 9482 4655.
Yours faithfully,

Peter Kennewell,
Managing Director

24th January 2002
Five grams of Ruby per tonne in Trench 11

The highest grade of ruby recovered to date from the Gloucester Ruby Project, twenty five carats per tonne of uncut ruby (five grams per tonne), has been obtained from Trench 11 (Section F). The largest stone obtained was 3.18 carats, flawless and of good colour.

The deposit was discovered accidentally when the basement on the southern bank of the river at Trench 11 was excavated. Instead of rotten granite it was found to be raised gravels within the Upper Terrace.

These older and high level gravels were deposited possibly millions of years before the recent alluvial gravels which contain the bulk of the recently upgraded inferred resource (12 million carats of ruby, comprising 2 million tonnes at six carats per tonne). This Upper Terrace has previously yielded lower grades than the recent alluvial gravels. It is different in nature to the recent alluvials, containing boulders of rotten granite and basalt, with a clayey matrix, and contains larger quantities of spinel, and much less corundum.

Rubies in these raised gravels appear to have originated from a different source from those in the adjacent recent alluvials, as they contain a higher proportion of high quality Red and Pink No 1 stones. The location of this high quality ruby source is still uncertain, but prospecting activities in the 1970s found rubies in swamps about two kilometres to the south of these gravels. .

The sample processed comprised 171 tonnes of gravel. Gravel thickness ranged from 0.5 to 1.6 metres, and the deposit is thickening south of the trench. Overburden averaged 1.5 metres. The trench was twenty metrtes long, and its width was 1 metre.

For further information please contact Peter Kennewell or Walter Penninger on (02) 9482 4655.

Peter Kennewell
Managing Director