Mining Lease
SML 57 was registered to Mount Kasi on 5 January, 1995. The Mount Kasi gold mine
is located in Vanua Levu, Fiji's second largest island and operated from 1932 to
1946 producing 261,000t of ore at an average grade of 7.5g/t Au. The deposit
represents a structurally controlled style of high sulphidation copper gold
mineralisation with peripheral low sulphidation mesothermal vein type gold
mineralisation. The resource consists of 1,048,000 tonnes of residual soils
(eluvium) containing 1.9 g/t Au at 0.5 g/t Au cut off and 1,240,000 tonnes of
hard rock at 3.0 g/t Au and 1.0 g/t Au cut. 94 drill holes, 298 auger holes and
85 pits were modelled to outline the resource. 29% of the pits bottomed in
mineralisation and it is likely the full thickness of eluvium has been
understated. The pit is scheduled to produce 500,000 tonnes of ore per annum to
yield 35,000 ounces of gold with an initial 2 years of eluvial ore followed by a
further 2 years of hard rock ore. Total capital costs are estimated to be less
than 10.0 million dollars with construction planned to commence in 1995. The
likelihood of locating further ore is high.