The recent RC program included four holes on two 50m spaced infill traverses north along strike from YRLRC401. The program successfully confirmed continuity of mineralisation along the HMS Sulphur horizon returning a best intercept of 11m @ 1.5g/t Au from 64m including 1m @ 5.6g/t Au in YRLRC1098. A similar width of mineralisation, though at lower grade was intercepted 40m down-dip in YRLRC1097 (11m @ 0.6g/t Au from 104m).

The traverse 50m further to the north also intersected the zone of mineralisation but also at lower grade. Drilling to date has confirmed that the HMS Sulphur mineralised horizon extends from immediately northwest of the Success open cut over at least 600m of strike. A total of five holes were drilled at Parmelia (Figure 1).

Two holes were drilled oblique to section (due to access constraints) testing the northern extension to mineralisation. Both holes intersected mineralisation with the best intersection of 3m @ 1.4g/t Au from 103m including 1m @ 3.2g/t Au coming from YRLRC1088. The location of this intersection indicates a possible redevelopment or down-dip continuation of the "upper lens" seen further to the south at Parmelia.

A narrow intersection in YRLRC1089 of 1m @ 2.3g/t Au is likely the down-dip continuation of the lower lens. Three holes were drilled on sections 100m apart down dip in the central part of Parmelia. The best result was from YRLRC1092 which intersected the upper lens (1m @ 1.2 g/t Au from 163m) and lower lens (4m @ 1.0g/t Au from 198 including 2m @ 3.3g/t Au).

Historically the richest part of Parmelia occurred when the upper and lower lenses merged forming a thick flat plunging lode that was thought to close off down-dip of the merge point. Drilling by Yandal has confirmed that mineralisation reforms into two separate lodes down-dip of the merge point leaving open the possibility for a repeat of the merging of lenses at depth. At Success, a traverse of five holes was drilled 25m to the north of the MRE envelopes to test for a potential northern extension.

All holes intersected low-grade mineralisation indicating either a fault offset or a pinching out of mineralisation along strike. A single vertical hole was drilled at the southern end of the Success pit targeting the interpreted projection of a possible south-plunging high grade shoot evident in the MRE model. The hole (YRLRC1087) intersected low grade mineralisation, possibly indicating that the hole has "clipped" up-dip of any plunging higher grade zone.

Further 3D modelling is required before undertaking any follow-up drilling. Three holes were drilled on three sections 200m apart at Caroline located at the northern end of Yandal's mining leases approximately 600m north of HMS Sulphur and in the same footwall stratigraphic position. Previous drilling by Yandal and earlier explorers has returned low grade intercepts at this location.

As gold depletion is common in the upper portion of the regolith at Mt McClure, deeper holes were drilled to determine if grade and thickness of mineralisation at Caroline showed any evidence of increasing at depth. The best result was 1m @ 1.2g/t Au from 113m (YRLRC1095) and consequently this prospect has been down-graded.