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GOLDEN CROSS RESOURCES LTD 2002-05-16 ASX-SIGNAL-G

HOMEX - Sydney

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ADELONG GOLD PROJECT FEASIBILITY STUDY RESULTS

GCR is taking the first step towards re-opening Adelong, one of NSW'
largest and highest-grade goldfields.

GCR commissioned Keith Goode of Eagle Research Advisory Pty Ltd to
visit the Adelong Gold Project and review the recently-completed
feasibility study. Keith Goode's report is attached for the
information of shareholders.

The feasibility study focussed on the Challenger Zone, the Challenger
Extended Zone and outlying mullock dumps. It is proposed that the
Challenger Zone be mined by underground methods, the Challenger
Extended Zone by open-cut methods and the mullock dumps be upgraded
through screening prior to processing.

The resource at the Challenger and Challenger Extended Zones has been
upgraded to 307,400t at 4.9 g/t, containing 48,000 oz of gold
(215,400t at 4.9 g/t indicated and 92,000t at 5.0 g/t inferred). The
mullock dumps inferred resource is 110,000t at 1.6 g/t gold. The
total resource is 417,400t at 4.0 g/t, containing 54,000 oz of gold.

The feasibility study is based on mining 23,500 tonnes per month over
14 months at an average grade of 4.2 g/t, producing 42,000 oz of gold
at an average cash operating cost of about $365/oz average cash
operating cost of about $365/oz (US$200/oz at 1A$ = US$0.55) over the
currently defined mine life. Drilling has shown that mineralisation
extends below the base of the current mine plan. Processing involves
a standard CIL plant with expected recoveries of 95%.

At current gold prices the feasibility study revealed a payback of
the $3.25 million capital cost in about 7 months.

Enquiries: David Timms, MANAGING DIRECTOR, Ph (02) 9482 8833

This report was prepared by David Timms, Managing Director and full
time employeeof Golden Cross Resources Ltd, who is a Fellow of the
AIG and AusIMM and has more than five years experience in the field
of activity in which he is reporting.

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