Highlights

Jaguar Project

During the Quarter significant progress has been made on the Jaguar Project Bankable Feasibility Study (BFS) as indicated by the following:

• The 2004 (BFS) drill program has been highly successful, returning significant wide highgrade copper-zinc-silver intercepts of up to +13% copper equivalent grades.
• The drilling has also intercepted several zones of massive sulphide at 2 to 3 times the modelled (Pre-Feasibility) thickness. The Directors anticipate that this will lead to an increase in tonnage and grade over the initial resource estimate.
• The discovery of multiple Footwall Lenses below the Main Lens some of which may have been missed by earlier drill programs stopping short of the new target zone. The discovery of a footwall copper-rich stockwork/stringer zone which also has the potential to increase the total contained metal of the deposit
• On a worldwide basis the Jaguar deposit together with the previously mined Teutonic Bore deposit fall within the top 5% of volcanogenic massive sulphide deposits based on combined metal grades. The results of exploration by the Company’s joint venture partner Inmet on the surrounding tenements provide significant potential for the discovery of further deposits.
• The recently acquired Cadjebut plant was disassembled and approximately 90% of the equipment was relocated to the Jaguar site in preparation for project development.
• All of the major components of the BFS have been completed or are nearing completion. The BFS is on track to be completed in December 2004. Negotiations with various financial institutions interested in financing the development of the Jaguar Project will be finalised following completion of the BFS.
• The Company anticipates that funding arrangements and concentrate off-take agreements should be completed in time for the decline development to commence during the second quarter of 2005. Following the commencement of mining, the construction and mine development schedule will require approximately 14 months to first metal production.