Cardinals Joint Venture Project (zinc) - Giralia 49%, Zinc Co Australia Limited earning 51%

The Cardinals prospect is located immediately west of the Daltons joint venture and covers strike extensions to the host rocks of of CBH Resources Ltd’s Panorama-Sulphur Springs volcanic hosted massive sulphide style (“VHMS”) base metals project (Sulphur Springs resource of 15.5 million tonnes @ 3.5% zinc, 1.3% copper), which is located 35 kilometres to the north east. Zinc Co Australia Limited has agreed to farm in on the Cardinals prospect with Giralia retaining certain nickel rights. Private interests retain rights to a magnesite occurrence.

Shallow percussion drilling in the 1970’s beneath a gossan assaying 22% zinc returned an intersection of 10 metres @ 5.9% zinc, 0.94% copper, 36 grams per tonne silver (including 2 metres @ 13.2% zinc).  A strong ground EM conductor is associated with the drilling intersections described above, and extends several hundred metres south of the gossan.
An aboriginal cultural heritage clearance was completed and drill sites prepared for a program of 15 RC percussion drill holes, which commenced subsequent to year end.