Prospectus - Kingsrose Mining

Section 8
Independent Geologist’s Report
and south of the Sand Prince mine workings, 13 RC holes over the Sand Queen East gold in soil anomaly, one
diamond drill hole to evaluate the southern plunge of the Comet Vale lode, one RC hole and two diamond
drill holes at Coonega.
7. Exploration by Reed Resources Ltd ( 1998 – 2007)
In September 1998, Mr David Reed acquired Destra Corporation’s 100% interest in the Comet Vale project.
Since that time exploration has been directed at defining extensions to, or repetitions of, the Sand Queen-
Gladsome gold mineralisation. This exploration program has met with a great deal of success, with the
identification of new zones of gold mineralisation that have significantly added to Reed Resource’s resource
inventory.
7.1 Exploration 1998 – 2002 (after Collins, PLF)
1999: Two deep diamond drill holes (CV11 and CV12) with RC pre-collars (DRC1, 2) were drilled in July-
August 1999 to test for possible depth extensions of the Comet Vale lode to the north of the Gladsome
mine. A third RC drill hole (DRC3) was drilled to test a gold in soil anomaly at the Sand Queen East
prospect.
2000: Exploration focused on prospective ground to the south of the Sand Queen-Gladsome mine, with
5,983m of drilling in 66 RC percussion drill holes (DRC4-DRC69). This work resulted in the discovery
of two, closely-spaced, sub-parallel, high-grade gold lodes, referred to as the ‘Sand George prospect, and
centred about 300m south of the Sand Queen shaft. Preliminary tonnage and grade estimates indicated
a resource of the order of 115,000 tonnes grading 12g/t Au.
2001: Exploration included an evaluation of the results of the 1999-2000 drilling programs along the
Gladsome-Sand Queen-Sand George-Sand Prince ‘line’ of lodes, 3-D geological modelling of the Sand
George lode, and an estimation of a mineral resource. Resource modelling indicated 85,549 tonnes
grading 14.2g/t Au in the main Sand George lode. Environmental and hydro-geological studies were
completed in preparation for dewatering of the Sand Queen main shaft.
2002: Surface exploration focused on the Sand George deposit and the potential for repetition of highgrade
lodes elsewhere along the Comet Vale lode structure. In addition a comprehensive data base
was established for all current and previous exploration. Work commenced on dewatering and
rehabilitation of the Sand Queen main shaft to gain underground access to source any remnant ore, for
geological mapping, and to assess use of the shaft as a means of underground access to the Sand George
deposit.
7.2 Exploration 2003 – 2007 (after Potter, D)
2003: Dewatering and rehabilitation of the Sand Queen main shaft to below No. 4 Level was completed and
geological mapping/sampling of the 4 Level south drive revealed a change in structural position of the
lode below 4 Level. Infill RC drilling at the southern end of the Sand Queen identified an Indicated
Mineral Resource of 6,500 tonnes at 19.7g/t Au (4,100 ounces of contained gold). Exploration of the
Comet Vale lode structure at the Sand George prospect included diamond drilling to test the deeper
lode positions, re-assessment of the geological model, and recalculation of the Mineral Resource
(155,000 tonnes at 11.6g/t Au, 58,052 ounces gold). Drilling also identified a shallow, flat-lying
structure referred to as the Sand Prince West lode with a resource (undefined) of 77,000 tonnes grading
3.9g/t Au.
2004: Exploration at the Comet Vale project during 2004 continued to target the area’s gold potential with
most of the work being confined to M29/52 and M29/321. Most exploration has focussed on definition
of a mineable resource at the Sand George deposit together with an evaluation of various mining
options for feasibility studies for development of a mine. A new resource of 205,160 tonnes grading
10.6g/t for 70,000 ounces was calculated using a 2g/t cut-off grade.
2005: Development focussed on Sand Prince West where a total of 93 RC holes were drilled and a resource of
34,881t grading 2.94g/t for 3,300 ounces was defined.
2006: Exploration at the Comet Vale project during 2006 involved:
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