Eastern Metals Limited announced that sampling of outcrop and mullock dumps at the Currawalla Mine, located on the company's Tara exploration licence (EL 9180) in New South Wales has returned assays of up to 3.38% TREO. Following on from these significant results, EMS has prepared an exploration program for Tara, which the company believes may potentially lead to the recognition of a new rare earths province. Eastern Metals has subsequently lodged an application for an exploration licence adjacent to Tara to secure further ground in this promising province.

Sampling and analysis: A total of 15 sites within Tara were recently visited. Two of these were selected based on regional geological interpretations, while the others were at the Currawalla mine site and nearby outcrops. The samples were collected at four locations from mullock dumps near the shaft and from outcrop along the quartz breccia, over a length of approximately 80 metres.

Sample coordinates were determined using a Garmin GPSMap65s GPS receiver. Samples were analysed in the field by an SciApps XR555 portable XRF (pXRF). This instrument has REE detection capability, due to its powerful 55kV beam.

None of the samples collected contained visible chalcopyrite, pyrite or arsenopyrite, and none had malachite staining, which had been the prime rationale for investigating the mine. However, the pXRF did show significantly high readings for the LRE cerium (Ce) and lanthanum (La) and the HRE proxy element yttrium (Y), in several samples. These samples were sent to an independent laboratory for assay for REE.

They were crushed and pulverised and analysed by inductively coupled plasma atomic emission spectroscopy after aqua regia digestion. High grade REE samples were analysed by fusion and inductively coupled plasma mass spectroscopy. Samples T23-003, T23-004 and T23-011 were taken from near the shaft, samples T23-006, T23-007 and T23-008 from the mullock dump near the shaft, samples T23-009 and T23-010 were outcrop samples taken from the quartz breccia zone 50 metres to the north east of the shaft, and samples T23-012,T23-013 and T23-014 were outcrop samples taken from the quartz breccia zone 100 metres to the north east of the shaft.

Most of these samples are highly anomalous in TREOs. Aeromagnetic survey: An aeromagnetic survey was flown for the NSW Department of Mineral Resources (now Department of Regional NSW - Mining, Exploration and Geoscience) over much of the Cobar area in 1988. This survey covered all of EL 9180 Tara.

The contractor was Tesla Airborne Geoscience Pty Ltd. The line spacing was 250 metres and the sensor height was 60 metres. The lines were flown in an east-west direction. This map also shows the location of the mine shaft, and the locations of the samples collected and analysed.

There is a very clear spatial association between the shaft, the samples carrying high TREO, and the magnetic anomaly. This anomaly has never been drilled and its source remains unknown. It is a very high priority exploration target for EMS. Proposed Work Program: A program of geological mapping, soil sampling and ground magnetic surveys at the Currawalla mine site and its environs has been prepared.

This work will be conducted in forthcoming weeks. Depending on results, drilling will follow later. Application for a new Exploration Licence - ELA 6600 Black Range Eastern Metals has applied for a new exploration licence, ELA 6600 Black Range, to secure vacant ground to the east and south of the Currawalla Mine, as well as nearby geological environments thought to be similar to that at the Currawalla mine site.

This ELA covers 186 graticular units or approximately 540 square kilometres.