More good drilling results

OXR RIO - ASX Company Announcement
$mtl7 THIS IS A PRIORITY ITEM
18 July 2002
Part 1/1
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OXIANA RESOURCES NL
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HOMEX - Melbourne
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Sepon Project - Khanong Copper Drilling

SEPON PROJECT 80% OXIANA, 20% RIO TINTO
KHANONG COPPER DRILLING

Western extensions to Khanong resource confirmed. New high grade zone
delineated.

All results have now been received from the Copper Project Bankable
Feasibility Study (BFS) infill and extension drilling programme at
Khanong. A robust high grade resource has been confirmed, extensions
have been delineated and the deposit remains open in several
directions.

* Full results for the infill and extension drilling programme at
Khanong have now been received. This programme, completed as part of
the copper BFS studies, has been highly successful in achieving its
objectives.

Infill drilling in the central core of the deposit has confirmed a
robust high grade copper resource with excellent continuity
demonstrated between holes and sections. The majority of this central
core mineralisation is expected to be classified as measured and
indicated resources. This will establish a substantial initial
mineable reserve base for the BFS.

Continuity of the resource to the west has been confirmed and
extensions to the deposit have been delineated in a number of areas
to the north, south and south-east. The deposit remains open in
several directions (figure 1).

* Results received for the final batch of holes (KHN 275 KHN 294)
from the Khanong BFS extension drilling have confirmed continuity of
the resource to the west. Of particular significance is the
delineation of a new 500 metre long core of near surface higher grade
mineralisation. Some of the better results from the latest batch are
as follows:

HOLE NO EASTING NORTHING INTERCEPT DEPTH FROM METCODE

KHN284 607200 1875400 11m 1.0% Cu 7 metres CC,CuO
KHN285 607300 1875400 19m 1.3% Cu 34 metres CC,LCC
KHN286 607500 1875400 22m 4.4% Cu 12 metres CC,CuO
including 5m 12.7% Cu 19 metres
KHN288 607700 1875500 31m 1.6% Cu 2 metres LCC,CC
KHN293 607350 1875700 16m 1.6% Cu 28 metres CuO
including 2m 5.6% Cu 29 metres

Note: sample interval is 1 metre; intercepts are weighted averages
calculated using a 0.5% copper cut-off grade; maximum internal waste
is 2 metres; metcode CC _ chalcocite, CuO _ copper oxide, PR _
primary; LCC _ Limonite + chalcocite; all holes are vertical.

* Extensive quality control incorporating diamond twins of RC drill
holes, check standards, external lab assay checks, field and assay
duplicates, coarse and pulp blanks and assays of cyclone derived
drill fines have been thoroughly analysed. No anomalies of any
significance have been detected and the data is of excellent quality.
Extensive analysis of bulk density measurements is also complete.

* Final data compilation and validation is complete and resource
modelling is in progress. A revised resource is expected to be
completed in August.

O L Hegarty
MANAGING DIRECTOR

Note: Within this statement references to resources and exploration
results have been approved for release by Tony Manini BSc (Hons),
FAusIMM who has more than five years experience in the field of
activity concerned.

A copy of the full announcement, including figure 1, 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.

ends - AAP