Cauldron Energy Limited reported a second intersection of high-grade gold in its current diamond drill program at the Blackwood Gold Project in Victoria. The results from drill hole BKD015 show excellent correlation with results from recent hole BKD014, confirming the westerly dipping, southerly plunging orientation of gold-bearing shoots, which have developed from multiple phases of structural deformation and corresponding injections of gold-rich fluids into the structurally-related dilution zones. Drilling is continuing to target the Annie Laurie reef from the underground drill access in the Tyrconnel Adit.

Holes BKD015 and BKD014 were positioned either side of the Western Leader Rise to target a zone of high-grade gold sampled in the 1980's. The results validate the previous results of 2.45m grading 31.3 g/t Au from face sampling. The excellent correlation between Cauldron's drilling and previous underground sampling gives the Company confidence in using these results to guide its exploration program. Hole BKD015 was drilled from the same underground platform as hole BKD014 but targeted the southern side of the Western Leader Rise and tested the southerly plunge of the high-grade gold shoot previously sampled in the Rise in 1986.

BKD014 tested the northern extension of the same high-grade gold shoot. The position of the high-grade mineralisation intersected in both drillholes shows excellent correlation with previous face sampling of 2.45m grading 31.3 g/t Au in the Western Leader Rise, situated approximately 12m vertically below the level of the Tyrconnel Adit and approximately 70m below ground surface. Geologically, the BKD015 intercept is hosted within a similar zone of broken quartz to that observed in BKD014, containing moderate amounts of sulphide (pyrite, chalcopyrite and galena), in the same structurally complex sequence of folded sandstones, siltstones and graphitic shales.

Results from hole BKD015 were: 0.8m @ 19.2 g/t Au from 20.20 ­ 21.00m downhole, including 0.30m @ 27.0 g/t Au from 20.20m. Results from hole BKD013 were also received but did not return any significant gold intersections. Although the target ore shoot was intersected, geological logging of the core indicated a fault gouge interval at the target depth, likely representing an offset of the target ore shoot.

Cauldron aims to expand and demonstrate the full potential of the Blackwood Goldfield over time, with the drill campaign at the Eastern Reefs being just the first step of the work program. Historic production at Blackwood totalled more than 200,000 ounces of gold from a number of shafts with extensive underground workings limited to above the water table in most areas. Therefore, the potential for defining a multi-million ounce gold endowment at depth at Blackwood is very good.