ARC Significant Gold/Copper Deposit Confirmed

AMALG RESOURCES NL 2002-08-21 ASX-SIGNAL-G

HOMEX - Perth

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The Board of Amalg Resources NL ("ARC") is pleased to advise that
significant widths of copper/gold mineralisation have been confirmed
in an area called "Eloise Deeps", below the Ramsay Fault at the
Eloise Copper/Gold mine. These outstanding assay results from an
underground diamond drilling program indicate that the Eloise Deeps
mineralisation has the potential to add another year's reserves.

The recently completed drilling program was designed to test in-fill
targets within the depth extension of the 'B' (Levuka) Lode and to
confirm the existence and continuity of the 'B' Lode mineralisation
below the current ore reserve outline.

Results for diamond drill holes EAM 324 - 327, which were pending
when the June Quarterly report was prepared, are shown in Table 1.


Table 1: Underground Drill Results - Eloise Copper/Gold Mine

HOLE COLLAR RL AZ DIP TOTAL INTER
NUMBER COORDINATES M DEPTH FROM TO
NORTH EAST

EAM324 82282.6 97573.5 554.5 112.0 -16.8 150.0 104.95 106.36

EAM325 82162.9 97509.3 619.5 99.0 -42.0 191.6 159.70 167.20
170.55 177.65
EAM326 82162.9 97508.3 619.1 102.5 -75.0 371.5 269.37 294.81
EAM327 82162.3 97507.8 618.7 137.0 -72.3 377.7 245.00 266.15
286.30 303.25
HOLE METERS GRADE
NUMBERS %CU G/T AU G/T AG

EAM324 1.41 3.30 0.29 11.5

EAM325 7.50 4.31 0.33 18.3
7.10 3.60 0.55 16.8
EAM326 25.44 4.59 1.05 18.3
21.15 4.83 1.62 19.2
EAM327 16.95 4.80 1.40 18.3

Intersections are at a 2.0% Cu cut-off.

Drill holes EAM 324 & 325 were designed to in-fill/extend known
mineralisation above the Ramsay Fault. The Ramsay Fault truncates
mineralisation below the 450m Level and represents the base of the
current ore reserve outline. Drill Holes EAM 326 & 327 intersected
the main lodes (Levuka and Elrose) below the Ramsay Fault and confirm
that the mineralised envelope extends for at least another 100
vertical metres below the current reserves.

The new mineralisation is still open at depth and showing no signs of
weakening. This zone will become the target of a 23 hole underground
diamond drilling program scheduled to commence in October 2002. The
Company plans to test a 100 - 125 metre vertical block down to the
300m Level with a total of 5,240 metres of drilling. A 70 metre long
drill drive is currently being developed at this 495m Level to
provide drilling access.

J Hocking
CHAIRMAN

The information in this report that relates to Mineral Resources or
Ore Reserves is based on information compiled by Brian Kelty who is a
Member of The Australasian Institute of Mining and Metallurgy. Brian
Kelty is a fulltime employee of the company.

Brian Kelty has sufficient experience which is relevant to the style
of mineralisation and type of deposit under consideration and to the
activity which is undertaking to qualify as a Competent Person as
defined in the 1999 Edition of the Australasian Code for Reporting of
Mineral Resources and Ore Reserves". Brian Kelty consents to the
inclusion in the report of the matters based on their information in
the form and context in which it appears.