This tenement of 150km² is located on the Cobar Supergroup Formation and Girilambone Group along strike and on same age and rock type geology as the world-class deposits at the CSA Mine (Cobar Management Pty Limited), Great Cobar Mine, the New Occidental, Endeavour (Elura), Mt Drysdale and the Peak Gold mines.

The EL contains the Mt Merrere and Golconda mines and covers groups of gold-quartz veins in Cobar Group and Girilambone Group sediments and metasediments near granite. Some rich grades were reported in early mining. Large widths of mineralisation have been reported at both the Lone Hand and Golconda mines and other workings on this EL.

The Company's target here is for gold-silver/base metal deposits in the basal Cobar Supergroup lithologies of Cobar type and Mt. Drysdale type (150-600 g/t Au/200-2000 g/t Ag) in the Merrere Conglomerates, which are possible equivalents to the Drysdale Conglomerates. Recent exploration models such as at Endeavor Mine highlight the margins of the Cobar Basin as a favourable structural setting for mineralisation. The deeper parts of the Basin have had little exploration and may host mineralisation that does not have surface expression.

Prospects indicating gold mineralisation exist on the Mt Merrere Goldfield mineralisation at Golconda Mines located in a 50-200m wide zone of alteration and hosted by a quartz vein stockwork; five shafts exist over 400m of strike, with grades reported of 4 g/t Au, 9.5 g/t Ag. Burtons Mine assayed 274.0 g/t Au, 840 g/t Ag with production being 0.2t ore. Lone Hand Mine yielded 1.5 to 6 g/t Au across a belt 130m wide at the 30m level.

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Exploration Programme

The programme will include regolith mapping, LAG sampling, rock chip and soil sampling and identification of target areas for drilling. A number of previously identified anomalous zones and workings will be sampled. Structural analysis and geological mapping will be continued. Regional LAG geochemistry will continue over areas containing the shallowest in-situ cover and underlying potentially prospective stratigraphy and structure.

There is a relationship between magnetic minerals and mineralisation here so airborne magnetics will be used to select targets for detailed exploration. Coincident geochemical and geophysical anomalies constitute drilling targets. A detailed geophysical review to identify targets will be used and tested by geochemical and structural analysis. I.P. surveys may be used on suitable targets using new deep penetrating electrical survey for responses below 200m depths. Drilling will be required for follow up of identified targets.

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The proposed expenditure budget for Tindarey is set out below.