Jaguar Project

Background

The Jaguar Exploration Project encompasses 3 high grade VMS deposits, Teutonic Bore, Jaguar and Bentley, centred on the Jaguar mine approximately 300km north of Kalgoorlie and equidistance between Leonora 65km by road to the south and Leinster to the north. Production began from Jaguar in 2007 and in late 2008 Jabiru Metals discovered the Bentley deposit 4km to the south. The Bentley high grade resource remains open at depth and is currently being developed with production planned for 2011

Regional Geology

The Jaguar Project is located within the Gindalbie Terrain, a subdivision of the Archaean Eastern Goldfields Super-terrain of the Yilgarn Craton. The area is dominated by volcanic and lesser sedimentary and intrusive rocks that have undergone tilting to sub-vertical positions. Regional metamorphism is lower greenschist facies. The Gindalbie Terrane is characterised by bimodal HFSE-enriched (heavy field strength elements) rhyolites, basalts and intermediate-felsic calc-alkaline complexes overlying an older tholeiite-komatiite succession. The Archaean rocks are locally intruded by Proterozoic dolerite dykes, and unconformably overlain by Tertiary and Quaternary-aged alluvial cover. Regionally, weathering is intense with a well-developed regolith. Complete oxidation persists to a depth of 50-80m and fracture-controlled partial oxidation to 120m. Bedrock exposure in the area varies from being reasonably good sub-crop in the north and west, including the Teutonic Bore mine area, to virtually non-existent to the south in the vicinity of the Bentley deposit. Interpretation is largely aided by magnetic and drilling data.

Teutonic Bore Deposit

The Teutonic Bore deposit was discovered in 1974 by Carpentaria Exploration sampling of small gossan outcrops. The gossan was drilled in 1976 by Australian Selection Pty Ltd and deeper follow up drilling six months later discovered the massive sulphide mineralization. Subsequent drilling showed the gossan was up to 30m thick and extended over 300m of strike. The base of complete oxidation ranged from 45-85m depth and the transition zone between saprolite and fresh rock extended to a depth of 85-100m. The deposit was extracted from open pit and underground by a BP-MIM JV from 1980 to 1985. The total ore mined was 1.6mt @ 3.5%Cu, 11.2% Zn and 146g/t Ag from a premining resource of 2.2mt @ 3.5% Cu, 11.1% Zn, 0.9% Pb, 52g/t Ag and 0.2 g/t Au

Jaguar Deposit

The Jaguar Deposit was discovered 4km south of the Teutonic Bore Mine in 2002 by the second diamond drill hole targeting an 1800m long conductor defined by a deep penetrating fixed loop transient electromagnetic survey (FLEM). The first hole intersected sulphidic black shale at the conductor position and the second hole, 600m to the south, intersected massive sulphides over 7.7m from 485m grading 4.3% Cu, 16.1% Zn, 0.8% Pb, 173g/t Ag and 0.24g/t Au. A total of 84 drill holes on nominal 50m centres for 41,659m outlined an initial resource estimate of 1.62mt @ 3.4% Cu, 12.8% Zn, 132g/t Ag and 0.8% Pb (2005). Jaguar is currently being mined at a rate of 400,000 tonnes per annum producing around 9,000 tonnes of copper, 25,000 tonnes of zinc and 600,000 ounces of silver.

Bentley Deposit

The Bentley deposit was discovered in October 2008, 4.5 km south of Jaguar when diamond drill hole 08SWDD04 intersected 10.55m of copper and zinc rich massive sulphides followed by 17m of stringer-vein style sulphide mineralization, as part of a systematic drilling campaign to test below an area of near surface zinc anomalism historical known as the Snowy’s Well Prospect. The massive sulphides were intersected at 370m depth some 200m below an MIM exploration diamond drill-hole (SWD1) completed in 1992 which intersected 78m @ 0.64% Zn from 188m.  The Bentley resource estimate is 2.3mt @ 1.8% Cu, 9.8% Zn, 1.0% Pb, 121g/t Ag and 0.6g/t Au (June 2010). The resource remains open at depth with several high grade diamond drill intersections including:

• 09BTDDD025–10m @ 3.4% Cu, 7.9% Zn 0.3% Pb, 1.0g/t Au,200g/t Ag
• 09BTDD001- 5.7m @ 0.5% Cu, 28% Zn, 1.4% Pb, 1.3g/t Au, 278g/t Ag
• 09BTDD011-9.6m @ 1.9% Cu, 14.6% Zn, 3.6% Pb 2.6g/t Au, 309g/t Ag

Geology & Mineralization

The Teutonic Bore, Jaguar and Bentley deposits occur in the same broad stratigraphic position at or near the base of a tholeiitic and andesitic volcanic succession overlying a felsic volcanic succession. The three deposits consist of massive sulphide lenses with semi-massive and stringer style mineralization both below and lateral to the massive sulphides. The sulphide mineralogy consists of pyrite, pyrrhotite, sphalerite, chalcopyrite galena and minor sulphosalts.

The main Jaguar massive sulphide lens forms a single , continuous , steeply west dipping tabular body of approximately 400m strike extent and 400m down dip extent with an average thickness of 3m. The upper edge of the deposit is approximately 250m below surface. The deposit is hosted by a mixed sedimentary volcanic package towards the base of the mafic sequence. The footwall is a thick intrusive post mineralization gabbro which locally intrudes and split the main massive sulphide lens apart.

The Bentley massive sulphide mineralization at the rhyolite-andesite contact occurs as three principal lenses (Arnage, Brookland and, Mulsanne) separated by a late dolerite sill. The sulphide mineralization is strongly zoned both vertically and laterally with a sphalerite (+/-galena) rich top and margins and chalcopyrite-rich core and base. Carbonate and sericite form a wide alteration halo in both the footwall and hangingwall. Silicification is common within the footwall rhyolite and transgressive chalcopyrite-pyrite stringer style mineralization associated with strong chlorite-carbonate alteration is recognised up to 30m below the massive sulphide.

The Teutonic Bore massive sulphide mineralization was a single steeply west dipping lens measuring approximately 300m x 300m x 5m average thickness (maximum thickness 15m) associated with an interflow sedimentary package within the lower part of the basaltic to andesitic volcanic succession. For the most part the massive sulphide lens was 150m above the basalt / felsic contact though at depth it converged with the contact possibly as a result of syn-depositional faulting and/ or intrusive doming of the footwall rhyolite. The massive sulphide lens has a sharp upper contact and transitions into a transgressive footwall cone or pipe-like zone of stringer and disseminated sulphide mineralization interpreted as the principle hydrothermal feeder for the mineralizing system. Intense chlorite +/- silica alteration occurs in the immediate footwall to the massive sulphides and within the transgressive feeder zone surrounded by a broad pervasive halo of intense sericite –carbonate alteration that extends through the footwall basalts and into the felsic volcanics.

Exploration

The Jaguar project presents a number of exploration challenges not the least being the depth of targets beneath a deep and variable weathering profile and thick alluvial cover, particularly south of the Teutonic Bore deposit. The Teutonic Bore deposit was discovered by recognition of a small gossan as the weathered remnant of a massive sulphide deposit at depth. In contrast Jaguar was discovered below 300m depth by deep diamond drilling of a geophysical anomaly. The most recent Bentley discovery can be attributed to a combination of re-evaluation of historical work, modern geochemistry, a clear understanding of the target parameters and the commitment to undertake programs of deep regional diamond drilling.

Jabiru’s exploration strategy at Jaguar is to map the 3 dimensional geometry of the host horizon to the VMS deposits in an endeavour to discover additional economic deposits through a combination of near surface and deep drilling, geophysics, alteration mapping and multi-element geochemistry both in the regolith and in the fresh bedrock.

The depth extension to Jaguar and Bentley will be systematically and cost-effectively explored and drilled from underground as and when suitable drill positions become available.