Platinum Australia Ltd (PLA) – Bringing Smokey Hills into Production at ~95,000ozpa 4E (>40,000ozpa platinum)

• Platinum Australia (PLA) currently has two main projects in South Africa that are in the process of being taken through to platinum production, namely Smokey Hills in the east (~13km NW of Steelpoort) and Kalplats (~90km SW of Mafeking).
• PLA expects both projects to soon receive their “New Order” Prospecting Rights allowing Smokey Hills to convert to a Mining Right after completing the BFS in June 2006, and Kalplats to extend the exploration, upgrade the ore resource and complete a BFS by June 2007.
• Smokey Hills is a conventional UG2 eastern limb (of the Bushveld) reef that is expected to initially be mined by open-cut and then underground, very similar to the UG2 being mined underground on the adjacent Modikwa (ARM/Angloplats) platinum mine about 4km further south. Production has been estimated at ~95,000ozpa 4E PGM (Pt, Pd, Rh, Au) based on diluted grades of 5.0g/t and 82.5% recoveries, although >5.2g/t 4E and >=85% recoveries appear to be achievable.
• Kalplats represents a previously unrecognised style of platinum mineralisation in 3bn year-old greenstone rocks. Initial studies show that production from the >3.5g/t higher grade reefs could result in 3E PGM production rates ~190,000ozpa, although we have used a more conservative model on 3.25g/t and ~175,000ozpa.
• Both Smokey Hills and Kalplats appear to have significant upside potential. Smokey Hills could extend its planned mining west across the boundary into Modikwa ground in an arrangement with ARM/Angloplats, while Kalplats appears to have been misunderstood, with recoveries ~80% using conventional techniques, and possibly material extensions on strike and on parallel structures.

IAMGOLD Corporation (IGD.AX, IAG, IMG.TO) –Combining Gallery Gold into a >500,000ozpa ~ US$275/oz Cash Cost Gold Producer

• This report is based on publicly available information and was commissioned by Gallery Gold Limited (now IAMGOLD Corporation) to increase the market’s knowledge of IAMGOLD Australasia’s operations and regional potential of their key projects of Mupane in Botswana & Buckreef in Tanzania.
• While Gallery Gold brought operating mining expertise and an Australian geological knowledge approach to the merger, IAMGOLD brought financial muscle resulting in a much stronger gold producer with production >500,000ozpa, a market cap >A$2bn, and US$99m in net cash (which includes 148,420oz in gold at US$329/oz).
• Gallery Gold was bought for approximately US$200m, and has two operational areas being the Mupane mine in the Tati region of Botswana that produces about 100,000ozpa at cash costs of US$260/oz, and the Buckreef prospect in the Lake Victoria Goldfields of Tanzania on which a scoping study estimated production of 140,000ozpa at cash costs ~ US$260/oz for capex ~US$55m.
• IAG has holdings in 4 operating gold mines in West Africa, being 40% of Sadiola and 38% of Yatela in JV with Anglogold Ashanti in Mali, and 18.9% of Damang and Tarkwa in JV with Gold Fields in Ghana. These 4 holdings resulted in attributable production of almost 450,000oz in 2005 and have been estimated (by IAG) to produce almost 480,000oz at cash costs of almost US$280/oz in 2006. The addition of GGN currently increases production to well over 500,000ozpa at similar costs.
• All the prospects at Mupane and Buckreef-Busolwa are being re-interpreted using the latest 3 dimensional geological techniques by parts of the same team that successfully applied the technology to Kingsgate’s Chatree mine and region in Thailand. The initial re-interpretations have determined a number of new targets that could lead to higher resources at potentially higher grades.

Avoca Resources Limited (AVO) –Becoming a >100,000ozpa ~US$300/oz Cash Cost Gold Producer, initially with Trident

• Avoca has significantly advanced its understanding of the gold mineralisation at its Trident mine at Higginsville, clearly delineating the 3 main ore types of Athena, Western and Eastern. The current mining plan focuses on building up the Western Zone to a sustainable production rate of >100,000ozpa, and taking ore in the “gap” area while declining both towards the Western Zone and down to Athena.
• It appears that a production rate of >100,000ozpa can be achieved by 2008 through bulk mining the central area of Trident’s 20m - 25m thick Western Zone using Kanowna-Belle style (sub-level open) stoping while bench stoping the ~5m thick Athena for a combined production rate of >700,000tpa @ >6g/t (>125,000ozpa at a 93% recovery).
• AVO is taking the short-cut to production through toll-treating its ore in a number of nearby plants, but such expected production rates soon place a strain on regional plant availability. Consequently, AVO appears likely to construct its own 1.0mtpa to 1.5mtpa plant by 2008, especially if Trident continues to grow, and its regional ore sources are treated (such as Fairplay, the Palaeos, and possibly Erin).
• Trident appears to be a combination of Norseman and St Ives-type mineralisation, with thicker, more continuous and better, steep dipping ultra high grade Athena veins, linked by flats, abutting the Western Zone.
• Just what production rate can be achieved (potentially >170,000ozpa) and at what cash cost appears to be something that can only be delineated through mining from the Western Zone at possibly >5g/t and Athena at potentially as high as 20g/t. While the initial production depends on what can be mined from the “gap” area.

Marengo Mining Ltd (MGO) – Delineating their Copper-Moly-Gold Orebody at Yandera

• In early 2005, Marengo switched from exploration in WA to establishing an orebody at Yandera in PNG. Yandera had been explored by BHP in the mid-1970s at the same time as BHP farmed-in to Ok Tedi (and delineated the gold cap over the orebody) which caused Yandera to drop onto the back burner. A number of companies have since looked at Yandera mainly from a large company viewpoint but failed to take it any further until Marengo acquired the Project.
• Yandera is a classic large company target with a copper geochem anomaly ~8km long by 2km wide averaging 0.5%Cu with 5 identified phases of porphyries containing grades up to ~1%Cu (plus Molybdenum and Gold credits), which may include some higher grade zones. MGO started their drilling campaign at the end of May 2006 on their main Gremi Zone target aimed at establishing continuity for a recognised JORC resource by December 2006.
• As we have seen with other Australian junior companies, the large mining company approach is not necessarily always the way to develop these orebodies, and geological techniques and technology have advanced considerably since the 1970’s. A greater understanding of Yandera is expected after MGO brings in structural geological consultants to delineate the main controls of the copper-molybdenum-gold mineralisation, and identify how best to proceed forward.
• Although Yandera generally appears to have an overall low grade signature for Molybdenum (~150ppm or 0.015%), we encountered a number of samples of visible Molybdenum, including rocks that appeared to be riddled with it (as shown in Figure 6b on page 4 of this report).
• Gold appears to have not been a separate consideration as a individual entity when Yandera was being explored, despite the presence of pin-head sized visible gold, and alluvial workings (that are still being worked). Reputedly there is gold in quartz veining too, which requires further follow up and investigation.

Platinum Australia Ltd (PLA) – Smokey Hills Production Still Expected from 2007

• All 3 Platinum Australia (PLA) projects are now on a path to platinum production, with Smokey Hills (Eastern South Africa) expected to start production early in 2007. The Panton project in WA could be in production in JV with Sally Malay by the end of 2007, and Kalplats (Central South Africa) after the expected completion of its BFS by the end of 2007, could be in production in late 2008 / early 2009.
• Smokey Hills received its “New Order” Prospecting Right on 11 September 2006 through the cessation (or transfer) of the New Order Prospecting Right from its JV partner (Corridor Mining Resources) to the JV company (PhokaThaba Platinum Pty Ltd) in which PLA holds 80%. Application has been made for the New Order Mining Right, which may be received by late 2006 or early 2007.
• Should the Mining Right be received by early 2007, PLA expects to start mining and toll treating Smokey Hills’ UG2 ore through a nearby plant, while constructing its own concentrator for production of ~100,000ozpa 4EPGE (Pt, Pd, Rh & Au).
• A “New Order” Prospecting Right was also received for Kalplats on 11 September 2006 and drilling has consequently started aimed at increasing the size of the resource, as part of completing a PFS by April/May 2007 and a subsequent BFS by the end of 2007. Production is targeted at 170,000ozpa to 270,000ozpa 3EPGE with PLA earning a 49% interest from ARMplats.
• Both Smokey Hills and Kalplats appear to have significant upside potential. Smokey Hills could extend its planned mining west across the boundary into Modikwa ground in an arrangement with ARM/Angloplats, while Kalplats appears to have been misunderstood, with recoveries ~80% using conventional techniques, & potentially material extensions on strike and on parallel structures.

Golden Tiger Mining NL (GTX) –Encouraging Intersections at Weilong

• Golden Tiger Mining has retained its concentration on the Guangxi Province of Southern China, having moved to focus on drilling its new Weilong project in Western Guangxi, and take its other main potential projects around Huangganchong, Huangguan and Zhudong in its ~15,000sq km (~194km x 75km & ~51km x 56km) Dayaoshan JV area of Eastern Guangxi through geochem to soil sampling and drilling.
• The latest drillhole intersection of 9m @ 5.2g/t at Weilong, is GTX’s most encouraging result in China since its inception. Lying within 48m @ 1.5g/t the WDDH 4 intersection is in line with some of GTX’s sampling in the old workings of 26m @ 2.7g/t, and supports the potential stacked lode system interpretation.
• The next most prospective area after Weilong could be at Huangganchong, with its >50ppb gold anomaly over 1km long along a NE/SW structure. There are a number of values above 250ppb (usually classified as drill-ready) with peaks to 500ppb.
• The third group of projects showing very early geochem promise are in the Huangguan vicinity (being Changtian and TongHe), and Fengyuan and Muyikou south of Zhudong. Higher values have been identified from stream geochem at these projects, and they are being followed up with grid soil analysis.
• The prospectivity of Yueli may return assuming that shareholders approve the alliance with Sino Gold (SGX) that results in SGX holding 19.9% of GTX through subscribing for 15.3m shares at A$0.10/share and raising A$1.5m for Golden Tiger.