Mt Malcolm Mines NL provided an update on recent exploration activities conducted within its Mt Malcolm Project Area. Recent reconnaissance and historical database examination has revealed enriched and anomalous Light Rare Earth Elements (LREE) within several of Mt Malcolm's tenements at Leonora being Mt Stewart, Sunday-Picnic, Malcolm Dam and the Malcolm Mining Centre. At least seven (7) tenements have been identified containing positive LREE responses and at least eight (8) untested tenements have potential to host enriched LREE.

The tenement areas and the immediate surrounds present as Rare Earth Element Target Zones, located within the regionally prospective Leonora--Laverton District. Mt Weld to the east, combined with the Redlings and Mt Stirling to the west set precedent for economic mineralisation within the district as well as strategically- placed processing opportunities. The Redlings REE deposit hosted by narrow carbonatitic dykes within an alkalic granite stock is being touted as the deposit analogue for REE exploration at M2M; including the near surface oxide opportunities.

A litho-geochemical and PIMA study commissioned by Hannans Reward (A74632) was undertaken on bottom-of-hole samples from the Mt Stewart Project area in order to quantify the hydrothermal alteration signature of the area. Five hundred and eight (508) Infrared spectra were measured, and four hundred and ninety one (491) samples were selected from the bottom of hole drill spoil from several regional aircore drill programs. Samples were assayed for a comprehensive suite of elements including some rare earth elements. In Archean gold systems, the alteration silicate mineralogy is dominated by chlorite and sericite.

A broad corridor with an alteration assemblage of chlorite-biotite-albite- magnetite was established by the lithogeochemical survey mostly contained within a titanium rich mafic unit (gabbro). Sericite is the dominate alteration mineral in the data set. The survey returned irregularly distributed anomalous gold values throughout the alteration packages.

Although gold (Au) was the principal commodity targeted by the aircore drilling two Light Rare Earth Elements (LREE) being Cerium (Ce) and Lanthanum (La) were included in the suite of twenty (20) elements analysed (Genalysis Method AT/MS) being Ag, As, Ba, Bi, Ce, Cs, Hf, La, Li, Mo, Nb, Pb, Rb, Sb, Ta, Te, Th, Tl, W & Zr. A further seventeen (17) elements were also analysed (Genalysis Method AT/OES) being Al, Ca, Cr, Cu, Fe, K, Mg, Mn, Na, Ni, P, S, Sc, Sr, Ti, V & Zn this suite included Scandium (Sc). Cerium, Lanthanum and Scandium are regarded as immobile elements that generally survive through intense weathering and alteration hosted primarily in resistant heavy minerals like rutile, zircon, apatite and spinels.

A low order LREE anomalous response is over an area dominated by recently transported cover. The Aircore holes were drilled to blade refusal at 100m spacing, average depth 40m. Four widely spaced drill lines in the south covered a strike of 4km.

A sheared schistose sericitic volcanic felsic unit and sheared minor mafic granitoids were identified.