INVESTORS

Graphite Project

Graphite at Golden Gate

In July 2004 the Company, then named Gold Aura Ltd, undertook preliminary assessment of a large graphite deposit located at the Golden Gate mine. The graphite deposit was systematically drilled as part of a regional gold exploration program in the late 1980’s by Central Coast Exploration (CCE). Three vertical reverse circulation holes were later drilled by the Company between 2005 and 2007 that confirmed a thick graphite zone was present at Golden Gate (see Figures 10, 11, 12 and 13).

Table 2 Example of CCE graphite drilling results at Golden Gate

Graphite Deposit Classification at Golden Gate

Graphite mineralisation at Golden Gate is probably of hydrothermal or magmatic origin and is located along the contact between granitic rocks that intruded rhyolitic volcanics. The drill intercepts indicate the deposit has a north-westerly strike and shallow easterly dip. Hydrothermal or magmatic graphite deposits are an important source of graphite with examples being mined in Sri Lanka and Sweden that produce both flake and amorphous graphite.

Since the Golden Gate graphite deposit is reasonably well defined by past drilling the exploration program to be conducted by CGN will involve collection of fresh drill core samples for metallurgical testwork. Should a commercial graphite deposit be proven at Golden Gate, the area is well served by infrastructure with the port of Karumba on the Gulf of Carpentaria that services the Century Pb-Zn mine being within 150 kilometres from the town of Croydon.

Figure 10 Location Map of showing the Golden Gate graphite deposit as well as principal gold exploration targets of the Croydon Graphite and Gold Projects

Figure 11 Location Map of the Golden Gate graphite deposit showing relationship historical drill hole locations and contours of graphite thickness.

Figures 12 & 13 Cross sections through the Golden Gate graphite deposit based on drilling by CCE 1989.