Prospectus - Kingsrose Mining

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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: Page 26
1. Proving up gold resources to the south and west of the Sand George lodes (M29/52 and M29/233) 2. First pass drilling at Sand Duke (M29/198). 3. Defining further gold targets through mapping (M29/197). 4. Surveying of old workings and installing survey control at Lady Margaret (M29/197 and Lake View (M29/85). 5. Further evaluating the nickel/copper sulphide potential to the east. (M29/85, 186, & 235). 6. Undertaking of detailed aeromagnetic and gravity surveys over the tenure. 7. Continued collation of historical data. 8. Environmental survey of the western tenure (M29/35, M29/197, M29/198, M29/232 and M29/233). Comet Vale exploration data base During 2006/2007, significant work has taken place to locate, evaluate and validate previous exploration data. This data is in the process of being compiled into a single data base now managed by Reed Resources. All data files have been updated with the results from the 2006 work campaigns. Sand Prince Prospect Assays of the quartz lode intersections returned some high-grade gold intervals with assays in excess of 10g/t Au, including: • 1m @ 15.24g/t Au from 93m in JVC001, within 3m @ 6.32g/t (92-95m) • 1m @ 17.30g/t Au from 20m in JVD001 • 0.98m @ 14.02g/t Au in JVD003 (155.29-156.28) The mineralisation remains open at depth (400m) and along strike to the south where previous shallow drilling intercepted 1m @ 4.2g/t Au a further 400 metres south and 1m @ 7.3g/t Au and 1m @ 6.3g/t Au in the same hole 800 metres further south of the <strong>Kingsrose</strong> JV boundary. A further 1.5 km of the Comet Vale shear that hosts the Sand Queen/Sand George gold mineralisation remains untested. A diamond drill hole targeted to infill between previously drilled intersections of the Sand George lodes intersected the SG1 and SG2 lodes below the current mine (JVD006). Further drilling to test the depth potential of both the Sand Queen and Sand George lodes will be undertaken from planned underground development. A new resource estimate was reported by Reed Resources for the Sand George and Sand Queen lodes as follows. After review I have adopted these resource figures. Tonnes Grade Ounces Previous Indicated 146,000 12.1 57,300 Previous Inferred 149,600 11.9 57,360 Previous Total Resource 295,600 12.0 114,660 Increase in Indicated 44,498 12.0 17,104 Increase in Inferred 20,107 7.4 4,754 Total Increase 64,605 10.5 21,858 New Indicated 190,498 12.1 74,404 New Inferred 169,707 11.4 62,114 New Total Resource 360,205 11.8 136,518 NB: To comply with JORC guidelines this resource has been rounded to :- 360,200 tonnes grading 12g/t Au for 136,500 ounces Page 27
Page 1 and 2: Kingsrose Mining Limited ABN 49 112
Page 3 and 4: Table of Contents Section 1 Key Poi
Page 5 and 6: Section 2 Chairman’s Letter Dear
Page 7 and 8: Application of Proceeds at Full Sub
Page 9 and 10: 4.4 Application for Shares Applicat
Page 11 and 12: Section 5 Company and Project Overv
Page 13 and 14: Section 6 Directors and Corporate G
Page 15 and 16: As the Company’s activities devel
Page 17 and 18: Additionally, tenements are subject
Page 19 and 20: Potential Acquisitions As part of i
Page 21 and 22: In addition, GIPL made independent
Page 23 and 24: Figure 2. Regional Geology 1. Intro
Page 25 and 26: Figure 3. Project Geology and Tenem
Page 27: 6. Past Exploration up to 1998 The
Page 31 and 32: Table 3. Significant Results The su
Page 33 and 34: Holla, L.A., 2001. Geological setti
Page 35 and 36: Conduits Conglomerate Country rock
Page 37 and 38: Lava Limestone Lineament Lithologic
Page 39 and 40: Stockwork Stratabound Stratigraphy
Page 41 and 42: Under the terms of an asset sale ag
Page 43 and 44: APPENDIX 1 ASSETS BEING ACQUIRED AN
Page 45 and 46: To be read in conjunction with the
Page 47 and 48: APPENDIX 2 STATEMENT OF CASH FLOWS
Page 49 and 50: (b) (c) (d) (e) (f) (g) Income tax
Page 51 and 52: Unaudited Proforma 31 August 2007 U
Page 53 and 54: $ $ 10. CONVERTIBLE NOTES - UNSECUR
Page 55 and 56: 2.1 Western Australia Tenements in
Page 57 and 58: included a revised threshold test f
Page 59 and 60: • Compensation may have to be agr
Page 61 and 62: Notes: 1. The tenement is subject t
Page 63 and 64: expenditure will be borne by the pa
Page 65 and 66: Section 12 Additional Information 1
Page 67 and 68: Rights on Winding Up Subject to the
Page 69 and 70: Early Redemption by Noteholder The
Page 71 and 72: Section 13 Director’s Responsibil
Page 73 and 74: Application This Application Form r
Page 75 and 76: Application This Application Form r
Page 77 and 78: Airleg miner boring a level drive f

Prospectus - Kingsrose Mining

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