The Mt Kasi Gold Mine, Fiji

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.