PROJECTS

CRAIGIE ALLUVIAL GOLD PROJECT

EL 5654 DELEGATE NSW

Licence Granted: 14 December 1999

Location: 12 kilometres southeast of Delegate Area: 29.5 square kilometres (13 units)
Target: Alluvial gold in terrace deposits and active stream placers.
Commodities Sought: Gold

Exploration Philosophy:
At Craigie, Capital is searching for reserves to support a 2,000 oz/year alluvial mining operation.

Project Status - July 2007:
Data compilation completed; photogeological and geomorphological study completed; reconnaissance mapping & auger sampling completed; bulk sampling completed; grid-based sampling to outline resource at Craigie BogñTerrace 2 deposit at Shiralee completed; REF prepared and approval for trenching and bulk sampling at Shiralee & North Little Bog Creek prospects being sought; transportable processing plant purchased and refurbished; exploration continuing.

Achievements to Date:
Economically recoverable gold grades have been recorded from bulk samples of perched placers and deposits under marsh cover; estimated resources at May 2006 based on bulk sampling results at 230 mg/bcm gold cut off: Active Placers: Inferred 750,000 cubic metres at 250 mg/bcm gold containing 6,000 ozs gold. Perched Placers: Inferred 123,500 cubic metres at estimated 420 mg/bcm gold containing 1,600 ozs gold

Objectives of Proposed Exploration Programme:
Capital is aiming to establish reserves for a trial mining operation.