Gold expert required

Can someone in simple terms what they are talking rearding the gold exploration . Good Bad Ugly

Intelligent comments appreciated

PILBARA MINES LIMITED 2002-08-27 ASX-SIGNAL-G

HOMEX - Perth

+++++++++++++++++++++++++
INMET JOINT VENTURE (PILBARA 100%, INMET EARNING 70%)

As announced in July 2002 Inmet Mining Corporation (Inmet) have
completed 15,000 metres of drilling in 22 holes on the Teutonic Bore
joint venture project since January 2002, and have discovered the
Jaguar high grade base metal deposit. The Jaguar deposit, a copper,
zinc and silver rich body, forms a steeply dipping sheet measuring at
least 400 metres from north to south, 300 metres vertically with a
thickness of up to 8 metres horizontally. Massive sulphide (high
grade) mineralisation remains open in several directions, most
notably up-dip towards surface, and to the north. In addition there
is potential to discover additional deposits nearby within the
hosting EM conductor, which extends for over 1800 metres. The last
hole of the stage 1 programme, TBD 205W, completed during July 2002,
intersected 1.8m of massive sulphide @ 12.5% Zn, 0.8% Cu, 180 g/t Ag
and 0.25 g/t Au.

Inmet plan to re-commence drilling during August/September 2002, with
2 drill rigs, concentrating within the EM conductor to continue to
delineate the Jaguar deposit on 100 metre step-outs in areas where
the mineralisation remains open (refer attached long-section).
Concurrent with the drilling programme will be a preliminary
metallurgical study to determine the recovery of the massive sulphide
mineralisation and a resource calculation leading to a mining scoping
study.

NOTE: For further information on the status of this project refer to
the Pilbara web site www.pilbaramines.com.au, Analysts contacts).

Further ongoing exploration being considered will be the testing of
other base metal targets within the JV project area, including a
significant EM anomaly, 10km south of Jaguar, other defined EM
anomalies and the Snowys Well prospect (6m @ 2.42% Zn, 5m @ 2.2%Zn
and 1m @ 0.66% Cu) located 4km south of Jaguar and the continuation
of the EM geophysical survey north of the old Teutonic Bore mine to
delineate further conductive targets in this area. There are a number
of anomalous base metal prospects already outlined. EM survey
coverage in previous historical exploration in this area is very
limited.

REGIONAL EXPLORATION (PILBARA 100%)

As reported in the June 2002 Quarterly Report, stage 1 of an air core
drilling programme testing an under-explored area on the western
tenement boundary was due for completion in July 2002. 9,647 metres
were drilled in 202 holes covering approximately 12km of strike.

Drilling was within an area of interpreted mafic and ultramafic
rocks, with associated structures, and with the potential to host
gold and nickel mineralisation.

GOLD 22 holes reported gold assays of 20ppb or above, up to 770ppb
Au. The main area of gold mineralisation in 2 adjacent holes shows
weathered and altered volcanics and sediments with associated quartz
veins and a west-north west structure on the trend of the Royal
Arthur gold mine. Further work will be completed following up these
highly anomalous results.

Further drilling is also proposed over an identified "gold corridor",
covering some 5km of strike and including previous RAB and air core
drilling results of 4m @ 5.79 g/t Au from 34m, 4m @ 2.5g/t Au from
32m, 16m @ 1.82g/t Au from 54m, 4m @ 2.9g/t Au. Drilling by previous
explorers appears not to have penetrated the alluvial cover in many
places.

NICKEL (INMET JV) drilling has outlined a highly anomalous
ultramafic unit, over 4km in length, with values up to 0.35% Ni and
associated anomalous cobalt. A number of EM conductive targets
outlined in historical surveys have been identified in this area,
which may represent high-grade nickel accumulations, and have not
previously been drill tested. A more detailed EM survey is proposed
to define targets for follow-up drill testing.

The major EM conductor identified by Inmet, south of Jaguar, is also
adjacent to this anomalous ultramafic unit. Further interpretation
and drilling are proposed in this area.

Stage 2 regional and target drilling for gold and nickel will
commence in the near future, subject to Heritage requirements, and
will concentrate on the nickel and gold prospects outlined above.
Significant results will be reported when available.

LENNONS FIND PROJECT (100% PILBARA)

Following further interpretation, Pilbara have commissioned Outer Rim
Geophysical Consultants (used by Inmet to discover Jaguar) to carry
out an EM survey over the Lennons Find base metal deposit, SE of
Marble Bar in the Pilbara region of WA. The survey will cover strike
extensions to the known resource and the mineralised contact zone
over approximately 5km and provide indications of areas of
concentration of the massive sulphide and hence provide definitive
drill targets for follow-up.

ASX Code: PIL Telephone: (08) 9322 9999
www.pilbaramines.com.au
[email protected]

J Davis
MANAGING DIRECTOR

A copy of the full announcement including the map is available in PDF
format on www.asx.com.au. Alternatively it is available for purchase
from ASX Customer Service on 1 300 300 279.