Feni (Joint Venture)

In a Joint Venture Agreement signed in February 2003, Vangold Resources agreed to fund C$1,500,000 of exploration by 30th June 2005 to earn a 50% interest in the Feni Project, and a further C$1,000,000 prior to 30th June 2006 to earn a further 25% interest. The Feni Project is geologically similar to the Lihir Mine. An extension to 30th June, 2008 to spend $1.26m by Vangold has been agreed with $600,000 to be spent by 1st September, 2007 (see Press Release dated 5th February 2007).

The Feni Project, New Ireland Province, Papua New Guinea (EL 1021) is southeast of, and along trend from the Lihir Gold Mine.

The Feni Islands consists of two islands, Ambitle and Babase, both of which show very similar geology, including widespread known (drilled) gold mineralisation, similar alteration styles and similar alkaline intrusives to the Lihir Islands, and in particular to the Lihir Mine (42 million oz Au in resources).

Numerous drill hole intersections of between 1 and 10 g/t - such as 114m at 1.12 g/t Au (0.2% Cu), 19.9m at 2.13 g/t Au, 15.25m at 2.56 g/t Au, 16m at 2.3 g/t Au, 52m at 1.65 g/t Au, 10m at 5.7 g/t Au, 3m at 10 g/t Au.

Readers are advised to refer to the Press Release and Technical Report Sections of this web-site for complete information including detailed drill and trench results.

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