Highest weekly volume since March 00

Over 17 million shares were traded with most of them being traded on Friday. Have not had this since March 2000 during the tech boom.

Was this the reason?



CENTRAL KALGOORLIE GOLD MINES LIMITED 2002-05-31 ASX-SIGNAL-G

HOMEX - Perth

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SHERLOCK BAY NICKEL COPPER PROJECT, KARRATHA, WA

The Sherlock Bay Ni Cu Project was the subject of a detailed
investigation by Texasgulf in the early 1970's. It is a significant
project, with over A$4bn of in situ metal (revenue basis) estimated
from reported drilled resources of 75mt at 0.3% Ni, 0.1% Cu
(Texasgulf 1973). The resource was calculated from 10,000m of
drilling. It is primarily a massive Ni, Cu sulphide ore body
outcropping at surface, with 4 drill defined ore zones extending over
2km of strike.

It is well located, 7km off Highway 1, 50 minutes drive from
Karratha. The deposit is situated close to road, rail, grid
electricity, port and gas pipeline infrastructure, as well as the
townships of Roebourne, Karratha and Whim Creek. Nearby
infrastructure developments over the last 30 years have considerably
enhanced the economic potential of this project.

Four separate ore zones have been drilled to 1000m depth along 2000m
of strike, with individual ore zones up to 35m wide. Untested
potential remains along strike and at depth.

The ore has not been assayed for cobalt, platinum, palladium or gold.
There remains excellent (untested) potential for significant cobalt
and precious metals credits in the opinion of the Directors.

Favourablc preliminary metallurgical test work was reported in 1973,
with >80% nickel and copper recoveries into a marketable concentrate
(10-15% Ni content).

It is the intention of the Directors to investigate all of the
development possibilities presented by this deposit, and advance
Sherlock Bay through the feasibility studies and into commercial
production. These possibilities include;

Exploration for additional high and low grade ore along strike and at
depth. Approximately 7km of strike is covered by the Project PLA's.

The possibility of producing and shipping Ni and Cu concentrates, as
well as investigating recent advancements in the production of
refined metal using vat and heap leaching technologies.

A small scale mining and milling project based on high grade sulphide
ore, as well as a large scale, low ore grade project.

Possible cobalt and precious metal credits within the previously
defined Ni-Cu mineralisation.

Exploration for any associated platinum and palladium ore zones.

CKG EXCLUSIVITY AND OPTION TO ACQUIRE 100% INTEREST

The Vendor(s) will grant CKG the exclusive First Right of Refusal to
purchase 100% of the project under the terms set out below. This will
enable CKG to gather data and to conduct due diligence prior to
granting of the Prospecting License Applications by the Mines
Department.

Within 30 days of granting of the PL's by the Mines Department, and
all other necessary approvals to access the ground with a drill rig,
CKG will enter into a six month option agreement to purchase a 100%
interest in the project.

A cash payment of A$180,000, subject to raising sufficient capital,
(for the refund of expenses) will be made. A further staged cash
payment of $70,000 will be made during the Option period.

CKG will then issue a further 60m CKG shares to the vendor or
nominees, plus a 2% NSR on production (after development costs are
recovered), upon completion of the initial exploration and
investigation phase. This investigation should be completed within 6
months of the granting of the PL's. The issue of shares will require
shareholder approval.

CKG will also retain an exclusive First Right of Refusal to buy this
NSR from the Vendor(s) or their nominees for a sum of A$1,000,000
cash, at any time after a preliminary feasibility study, at CKG's
sole discretion, provided it is a necessary requirement for project
financing.

G Clark
COMPANY SECRETARY

Technical information contained in this report has been compiled by
Garry Clark from published sources. Mr Clark is a Fellow of the
Australasian Institute of Mining and Metallurgy with over 30 years'
experience in the Australian mining industry and a minimum of five
years, in the field of activity being reported on.