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APRIL 2006 • No 65 SEG NEWSLETTER 25investment of $5 billion and would produceabout 80,000 barrels per day ofclean diesel and other products for U.S.markets.SOUTHEAST ALASKAHecla Mining (29.73%) and KennecottMining (70.27%) announced 4 th quarterand year-end production resultsfrom its Greens Creek mine nearJuneau. For the year the mine produced9,665,428 oz silver, 72,758 oz gold,21,913 t lead and 64.611 t zinc. Cashoperating costs were negative $0.66/ozwhile total operating costs were$2.18/oz. Average head grade mined forthe year was 18.17 gpt silver. Year-endproven and probable reserves stood at2,223,872 tons grading 0.12 gpt gold,14.5 gpt silver, 3.9% lead, and 10.2%zinc. Inferred resources stood at 654.214tons grading 0.14 gpt gold, 14.5 gpt silver,4.1% lead, and 11.2% zinc.Due to the number and length of newsreleases relating to mineral activity inAlaska during the quarter and thespace limitations allowable for Alaskanactivities in the SEG Newsletter, not allactivities can be included here. Anunabridged version of this section of theSEG Newsletter can be found on theSEG’s website (http://www.segweb.org/RecentArticles.html) or at AvalonDevelopment’s website (www.avalonalaska.com).AUSTRALASIARegional Correspondent:Brent McInnes (SEG 1999)CSIRO Exploration and Mining (CEM)With contributions fromJim BeestonQueensland NRMWTony Christie (SEG 1992) – New ZealandNZ Institute of Geological & Nuclear SciencesSue Daly – PIRSAGeoff Green (SEG 2000)Mineral Resources TasmaniaTim McConachy (SEG 1987 F)CSIRO Exploration & MiningRussell Meares (SEG 1996) –New South WalesMalachite ResourcesTASMANIAZinifex Ltd. has discovered a new orebodyat the Rosebery mine 400 m northof K Lens. There are four economicintersections so far with values such as11.7 m (apparent thickness) @ 26% Znand 1.4 g/t Au.Lefroy Resources Ltd. hasannounced a JORC Inferred Resourcefor the Pinafore reef at Lefroy of304,000 tonnes (t) at 22.9 g/t Au, basedon a reef thickness of 2 m.Allegiance Mining NL hasannounced upgraded resource figuresfor the Avebury deposit that amount toan 89% increase in the amount of containednickel in the deposit. The newglobal resource is 11.59 Mt @ 1.02%nickel, for a contained 118,000 tof themetal. The initial reserve in the smallerfeasibility study area is 4.4 Mt @ 1.16%Ni above a 0.85% cutoff.Zelos Resources NL has announcedan inferred resource of 4 Mt @ 40% ironat the Nelson Bay River prospect nearTemma.Bass Metals Ltd. has defined a combinedindicated and inferred resource of370,000 t @ 1.7% Cu, 4.2% Zn, 1.4% Pb,64 g/t Ag, and 0.3 g/t Au in the QueRiver “S” lens, 3.5 km SW of Hellyerand has recently reported a number ofintersections of Cu-rich mineralizationoutside the resource envelope. Bass isalso drilling at the Mount Charterprospect, 3 km further to the SW andhas reported near surface intersectionsof Au-Ag-Zn-Pb mineralization (e.g.,15.4 metres grading 2.1 g/t Au, 38 g/tAg, 4.8% Zn and 1.9% Pb from 56 m).Bass, together with joint-venture partnersGeoinformatics and Zinifex Ltd.have identified 13 exploration targetson the Hellyer mine lease.TasGold Ltd. has intersected Aumineralization in the 666 Lode thatparallels and lies 100 m NE of theHiggs deposit near Moina in northernTasmania with intersections of 31.9 m@ 1.2 g/t Au and 2.0 m @ 14.8 g/t Au inseparate holes.The Beaconsfield gold mine jointventure partners have announced thefirst drill hole at Middle Arm Gorge,near Beaconsfield, has intersected 1.9 mof quartz-ankerite-sulfide alteration.Assaying is underway.QUEENSLANDStraits Resources have discovered alarge mineralized system beneath theold Yandan epithermal gold mine. Aninitial intersection of 176 m @ 2.4 g/tAu, including a high-grade zone of 27.5m @ 8.1 g/t Au, was followed up withanother encouraging intersection of 194m @ 2.1 g/t Au including 30.5 m @ 8.6g/t Au.Newcrest and SedimentaryHoldings Ltd. continue to explore thenewly discovered Kilkenny structurewest of the Cracow mining operation.Initial and subsequent high-grade intersectionshave been reinforced by additionaldrilling results, including 12 m @8.9 g/t and 4.4 m @17 g/t Au.Republic Gold Ltd. reported drillingat its Hodgkinson Basin projects innorth Queensland. Recent Tregooraproject drilling at the prospect targetsinclude 9 m @ 3.4 g/t Au and 15 m @1.59 g/t Au at the Honey prospect; 11 mat 3.92 g/t Au and 4 m at 3.89 g/t Au;16 m at 2.40 g/t Au at Retina Far North.Deep resource modelling diamonddrilling was undertaken by ResoluteMining Ltd. at the Mount Wright projectto assist in the technical aspects ofthe project feasibility study. Resultsincluded 37 m @ 4.34 g/t Au from 559m, 26 m @ 3.97 g/t Au from 559 m and62 m @ 5.43 g/t Au from 602 m. Theresource of 9.8 Mt at 3.35 g/t Au willnow be developed.Echelon Resources Ltd. has drilledthe first hole at the Cockatoo/Parsonsprospect 700 m south of the old MountLeyshon open pit. Results included 5 m@ 37 g/t Au, 56 g/t Ag, 0.1% Cu, 0.4%Pb, and 3.1% Zn from 975 m downhole.Kagara Zinc Ltd. announced aninterim upgraded resource of 3.3 Mt at3.9% Cu, 18 g/t Ag and 0.43 g/t Au attheir Balcooma project in NorthQueensland. Further high grade drillresults from four drill holes outside theresource include 57 m @ 3.1% Cu,including 9 m @ 8.6% Cu; 43m @ 4.0%Cu, including 10 m @ 7.2% Cu; 17 m @4.5% Cu, including 6 m @ 8.0% Cu; 17m @ 10.2% Cu, including 11 m @ 14.4%Cu.Glengarry Resources Ltd.announced Co-Mo mineralization intersectionsat its Maitland prospect withinthe Greenvale project. Results in onehole included 12 m @ 4.27% Cu from160 m including 7 m @ 5.59% Cu from165 m and 5 m @ 0.31% Mo from 153m. Continuous, high-grade Cu mineralizationhas now been intersected in fiveholes.Copper Strike Ltd. announced copperintersections from drilling at itsEinasleigh project northwest ofTownsville. Intersections reportedinclude 15 m @ 11.76% Cu from 244 m,11 m @ 3.10% Cu from 269 m and 2 m@ 9.83% Cu from 235 m. Later resultsreleased included 3 m@ 6.93% Cu from 232to pagem, 13 m @ 6.71% Cu 26 ...EXPLORATION REVIEWS