Website: www.hillendgold.com.au Email: Drilling results extend broad gold zone at Old Red Hill [email protected] 28 July 2006 ASX Code : HEG, HEGOA The recently completed Stage 2 drilling program at the Red Hill project has intersected a broad zone of near surface gold mineralisation and has extended the Old Red Hill mineral resource area. Results have confirmed the continuity of a wide zone of gold mineralisation previously drilled in hole RC32 which intersected 2.52g/tAu over 30 metres from surface (including 6.54g/tAu over 8 metres). The Red Hill project is located over a zone of gold mineralisation and old high grade workings of three kilometres in strike length and 50 to 100 metres in width, along the eastern flank of the Hill End Anticline to the north of Hill End, New South Wales, Australia. The company has almost the entire fifty kilometres strike length of the Hill End Anticline under tenement. In the Red Hill project area, deep weathering to a depth of 70 metres and gently undulating topography is ideal for open pit development. Reverse circulation drilling has targeted gold mineralisation in the weathered zone above the water table with significant intersections including the following results: RHRC88 with 1.94g/tAu over 20 metres from 27 metres; RHRC89 with 2.83g/tAu over 9 metres from 32 metres; RHRC90 with 2.04g/tAu over 25 metres from surface; and, RHRC91 with 1.36g/tAu over 20 metres from 6 metres. The Old Red Hill vein set, which is now outlined by shallow drilling over a 200 metres strike length and up to 27 metres width, is located five kilometres along strike from Hawkins Hill and Reward deposits. It occurs in a similar geological setting to Hawkins Hill and Reward with gold in bedding and spur quartz veins in en echelon vein sets, which are interpreted to continue down plunge for a kilometre or more. Four shallow-plunging vein sets have been identified to date in the southern Red Hill area over a near surface strike length of 800 metres: Whites, Red Hill Deeps, Old Red Hill and Marshall-McMahon. Additional areas along strike in the northern Red Mine and Administration C/o Hill End Post Office Hill End NSW 2850 Phone 02 63378319 Fax 02 63378133 Exploration Bowen Street Hill End NSW 2850 Phone 02 63378343 Fax 02 63378345 Sydney Suite 1310, 3 Spring Street Sydney NSW 2000 Phone 02 82494416 Registered Office P O Box 92 Earlville QLD 4870 Phone 07 4033 1805 Fax 07 4033 6415 Hill area, which are yet to be drilled, are the Valentines, Emily and Old Company workings. Further drilling on the Old Red Hill vein set is planned down dip and down plunge of the current drilling, and previous drilling by BHP in 1989 will be re-drilled since it is likely that the BHP drilling, sampling and assay methods have resulted in a low bias in the assays received. Previous metallurgical testing of oxide, transitional and primary samples from Red Hill indicated excellent gold recovery using simple gravity and leach processing at a relatively coarse grind. In summary, for all mineralisation categories: • • • gold appears to be free gold and liberated at a maximum particle size of 212 microns; gravity gold recovery averaged 77% and the remainder leached quite rapidly over approximately six hours; the total gold extraction for all samples was 98-99%. A review of mining parameters has indicated that the weathered zone to approximately 60 metres is quite soft for excavating and the wide mineralisation will result in a low stripping ratio. A new resource estimate for Old Red Hill near surface mineralisation will include the planned infill and extension drilling. The previous inferred and indicated mineral resources estimate for the Red Hill area was done in 2004 and totalled 27,000 ounces of oxide and transition material in Whites and Old Red Hill (inferred resource of 8,600 ounces in oxide material). Some assay results are awaited for the Stage 2 drilling program at Red Hill which included 1,879 metres of reverse circulation drilling and 655 metres of diamond drilling in 31 holes. Further details will be reported at a later date. Reverse circulation drilling samples with visible quartz samples and diamond core samples were assayed with the screen fire assay technique. Visible gold was observed in several core samples with grains to 1mm. Attribution The information in this report that relates to Exploration Results or Mineral Resources is based on information compiled by Mike Quayle who is a Member of The Australian Institute of Geoscientists. Mr Quayle is a full-time geological contractor for the company and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (The JORC Code). Mr Quayle consents to the inclusion in the announcement of the matters based on his information in the form and context in which it appears. Philip Bruce Managing Director For further information contact Philip Bruce +61 412 409555 Attached: - Southern Red Hill Project Drillhole Location Plan RH3 RH3 HERH HERH 28 28 RC30 RC30 HERH HERH 24 24 RC31 RC31 RHRC80 RHRC80 HERH HERH 25 25 RC31 108m 726600 mE 726500 mE 726400 mE 100 6347500 mN 100 100 RH3 RC30 HERH HERH24 25 81m RC31 RHRC80 HERH 25 RC60 80m RHRC81 75m RC60 RC60 RC60 RHRC81 RHRC82 75m RHRC81 RHRC81 RHD77 RH6 RHD77 RHD77 726800 mE 80m RHRC80 75m 726700 mE 75m RH6 RH6 RHRC82 RHRC82 RH1 RH1 RH1 176.55m RHRC82 100 RHRC83 75m RH1 RC54 75m RC54 RC54 RC55 RC55 200 RHRC83 RHRC83 RC55 RHD78 RHRC83 75m 200.3m RC54 RC55 100 RHRC84 72m RHRC84 RC53 60m RC53 6347400 mN RC53 RC53 RHRC84 RHRC84 RHD78 RHD78 RHD78 HERH 26 80m 200 RH2 200.25m HERH HERH 26 26 RC56 RC56 RH2 RH2 RHRC85 RHRC85 HERH 26 RC56 69m 100 RHRC85 73m RC56 RH2 RHRC85 RHRC86 50m RHRC86 RC52 69m RHRC86 RHRC86 RC52 RC52 RC59 69m RC52 RC59 RC59 RC59 RHRC89 73m RHRC89 RHRC89 RHRC89 HERH 17 80m HERH HERH 17 17 100 6347300 mN RC32 RHD79 75m 150.5m HERH 27 84m HERH 17 RC32 RH5 171.46m RC32 RC32 HERH HERH 27 27 RHD79 RHD79 RH5 RH5 RHRC88 RHRC88 HERH 27 RHD79 100 RHRC88 73m RH5 RHRC88 RHRC87 50m RHRC87 RHRC87 RC57 63m HERH 18 87m RC57 RC57 RHRCD108 110m 10 0 RHRC87 RC57 HERH 18 HERH HERH 18 18 RHRCD108 RHRCD108 RHRCD108 RHRC90 73m RHRC94 50m RHRC94 RHRC94 6347200 mN RHRC90 RHRC90 RHRC90 RHRC94 HERH 19 80m RC51 60m RC51 RC51 RC51 RC46 85m HERH HERH 19 19 RC46 RC46 RHRC91 RHRC91 HERH 19 RH7 167.66m RC46 100 RHRC91 73m RHRC91 HERH 21 80m RH7 RH7 RH7 HERH HERH 21 21 RC50 RC50 HERH HERH 20 20 HERH 21 RC50 75m HERH 20 81m RC50 HERH 20 RHRC92 73m RHRC92 Legend RHRC92 RHRC92 RC44 75m 6347100 mN RC47 75m RC44 RC44 RC47 RC47 RHRC93 RHRC93 RC44 Old Red Hill Zone RC47 RHRC93 66m RH8 161.9m RHRC93 RHRC95 73m 100 RC49 99m RH8 RHRC95 HERH 14 81m RHRC95 RHRC95 RC49 RC49 HERH HERH 14 14 HERH 14 RHRC96 73m RHRC96 RHRC96 RHRC96 RC49 RC45 RC43 RC43 RC43 6347000 mN RC45 RC45 RC48 75m RHRC97 73m RHRC97 RHRC97 RHRC97 RC48 RC48 RC48 RC42 RC42 RC42 RC41 80m HERH HERH 13 13 RC41 RC41 HERH HERH 12 12 RHRCD106 RHRCD106 RHRC98 RHRC98 HERH 1312 HERH 80m RC41 RHRCD106 105m RHRCD106 HERH 10 78m RHRC98 HERH HERH 10 10 RC33 63m Previous Drill Hole RC33 RC33 HERH HERH 11 11 RHD105RHD105-RC40 RC40 HERH HERH 09 09 RHRCD107 RHRC99 RHRC99RHRCD107 HERH HERH 05 05 HERH HERH 06 06 RC38 RC38 HERH 07 07 RC39HERH RHD109 RHD109 RC39 RHD104RHD104-RC58 RC58 Old Shaft HERH 10 HERH 11 81m 100 6346900 mN Track HERH 12 10 0 RHRC98 73m Road Completed 2006 Stage 2 Drill Hole RC42 65m HERH 13 80m White's Zone Mineralised Corridor Boundary RC45 75m RC43 75m RH8 RH8 RHD105 101.3m RC40 RC33 80m HERH 11 10 0 HERH 09 81mRHRCD107 103m Old Working RHD105 RC40 HERH 09 RHRCD107 RHRC99 73m HERH 05 78m RHRC99 RC38 75m HERH 05 HERH 06 80m RHD109 100m RC38 RC39 RHD104 76m 129.5m HERH 06 100 HERH 07 80m RHD109 RC39 RC58 75m HERH 07 HERH 08 75m RHD104 RC58 RHRC100 73m HERH 08 HERH 01 75m HERH HERH 01 01 RC36 67m RC36 RC36 HERH HERH 02 02 HERH 02 80m RHRC100 RHRC100 HERH 01 RC36 RC37 64m HERH 02 6346800 mN HERH HERH 08 08 RHRC100 HERH 03 66m RC37 RC37 RC37 HERH HERH 03 03 HERH 03 HERH 04 79m RC34 68m RHRC101 73m RHRC101 RHRC103 44m RHRC103 RHRC103 6346700 mN HILL END GOLD LIMITED HERH HERH 04 04 HERH 04 RC34 RC34 RC35 68m RHRC102 43m RHRC103 RC34 RC35 RC35 RHRC101 RHRC101 RC35 RHRC102 RHRC102 RHRC102 RED HILL PROJECT Drillhole Location Plan Author: RJP Drawing: Office: Hill End Scale: 1:3000 Projection: MGA Zone 55 (GDA 94) 0 25 50 metres Date:6/7/2006 100
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