+++++++++++++++++++++++++ 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.
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.