Kathleen Valley/Mt Harris Joint Ventures (Giralia 22-49%)

These two adjoining joint venture areas are situated approximately 110 kilometres south-south-east of Wiluna and 10 kilometres north of the Bellevue Mine. They cover an area of 35 square kilometres centred around the old Kathleen Valley mining centre. The Kathleen Valley joint venture includes the Main Road deposit, mined in 1991 by Giralia in conjunction with Forsayth NL (production 87,000 tonnes at 4.66 grams per tonne gold) and the Northeast Stockwork, where a series of shallow intersections of exceptional gold grade (10 metres @ 44.5 grams per tonne, 11 metres @ 71.9 grams per tonne, 6 metres @ 104.9 grams per tonne gold) suggests the presence of a rich zone of potentially economic mineralisation, although the geometry of the zone is not yet understood.

Joint venture operator, Jubilee Gold Mines NL ("Jubilee") has announced a total resource in the Kathleen Valley area of 1.769 million tonnes at 3.10 grams per tonne gold. While the bulk of this resource occurs on wholly owned Jubilee tenements, it does include a resource of 56,000 tonnes at 2.75 grams per tonne gold on Giralia's tenements at the Main Road deposit and the Northeast Stockwork zone.

At Government Well on the Mt Harris joint venture, RC intersections of 2 metres @ 18.7 grams per tonne and 10 metres @ 1.66 grams per tonne and 10 metres @ 1.66 grams per tonne gold suggest resource potential.

In addition, the Kathleen Valley joint venture tenements contain 1500 metres of the strike extensions of the stratigraphic package hosting Jubilee's Cosmos nickel mine, which is located 5 kilometres to the south.

Diamond drilling of gold targets at the Northeast Stockwork and Main Road deposits in mid 2002 returned a significant result from beneath the Main Road open pit, with an intersection of 24 metres @ 4.8 grams per tonne gold, including 5.9 metres @ 12.1 grams per tonne gold from 197.1 metres.

During 2005 Jubilee completed RC drilling programs for gold and nickel at the Zenobia and Ilias prospects on Kathleen Valley joint venture tenements with intersections in several holes at Zenobia, including 39 metres @ 0.51 g/t gold from 8 metres, and 2 metres @ 2.49 g/t gold from 56 metres).  Two holes at Ilias intersected 2 metre zones of elevated nickel mineralisation (0.77% & 0.76% nickel) within a weathered, serpentenised-thrusted wedge of ultramafic, which is interpreted to be the northern-most extension of the Mercury-Venus ultramafic unit north of Cosmos.