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Stavely Project - Fairview Gold Prospect

In 1992, North Limited used BLEG geochemistry to survey streams in the southern part of the Stavely area. A broadly anomalous (+1ppb gold, maximum 16ppb gold) gold corridor was defined along the western margin of the Mount Stavely Volcanic Complex (MSVC).

In 2003, Newcrest undertook a systematic 100m x 200m multi-element, GPS controlled soil survey across the western boundary of the MSVC over a rectangular area roughly 5 km by 2.5 km. This generated a straight line gold-in-soil anomaly (+1ppb gold, maxima 10,13,16,54 and 76ppb gold) some 5 km long that is open to the south-south-east and to the north-north-west.

During the December 2005 quarter, Beaconsfield Gold conducted detailed soil sampling over what it interpreted as the possible trend of gold mineralisation at Fair View. Some 1,865 samples were collected at 20m spacings on 61 lines spaced at 80m covering a 4800m x 600m area over the NNW-SSE trend. Samples were analysed for gold using fire assay.

Final results showed that 17% of samples exceeded 30 ppb gold. Of those +30 ppb gold results, 33% exceeded 100 ppb gold. Several assay results exceeded 1,000 ppb gold (1 g/t gold).

The results define a strong, very coherent anomaly over the full 4.8 km length tested with varying widths up to 280m. It remains open to the NNW and SSE. The most southerly line across the anomaly averages around 180 ppb gold over 7 consecutive samples (140m width).

The strength, sharp definition, excellent continuity of high gold values and large dimensions of the 4.8 km plus long Stavely gold-in-soil anomaly mark it as an exceptional large scale exploration target.

First-pass reconnaissance drilling commenced during February 2006. A total of 3,800m of shallow, vertical aircore holes were drilled through the oxide zone on selected sections of the anomaly. The holes averaged 23m in depth with the maximum depth achieved into bedrock being 36m. The program confirmed several areas of high level anomalism throughout the prospect. In particular, a number of ore grade results were recorded at the northern and southern extents of the soil anomaly. The anomaly remains open in both these directions. More significant results included:

During March 2006, a diamond rig commenced a six hole program of angled holes designed to determine the stratigraphy under the soil anomaly. This was immediately followed by an RC ("reverse circulation") program of around 3,600m for 51 holes. The program involved both angled and vertical holes to a depth of about 130m to test beneath the anomaly. Several holes were drilled up to 350m south of the anomaly confirming that the trend of gold mineralisation does continue beyond the area of original soil sampling.

More significant results included:

All holes drilled at -60 degrees to 60 degrees magnetic except FRH 9 drilled vertically

The figure below shows the peak individual assay in each drill hole from the aircore, RC and diamond programs.

The drilling has now confirmed that gold mineralisation is present in the primary rocks below the oxide zone over a significant area. The mineralisation appears to be associated with both the host sandstone and also volcanic intrusives within the sandstone. This confirms the previously unrecognised prospectivity of the tenement package for gold within sandstone.

A geophysical program was undertaken to refine the geological/structural model and help in the design of follow-up drilling programs. In December 2006 low-level, detailed aeromagnetics were flown over an area of some 170 square kilometres. Data quality was excellent and several fault structures potentially linked to primary mineralisation at both Fairview and Thursdays Gossan have been identified. Identified linear trends and discontinuities will be used to target drilling for structurally hosted gold mineralisation at Fairview during 2008.