the age report on gln

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    anyone have any views on GLN, in light of todays market announcement & the AGE report on it?

    Gleneagle doubles gold resource

    January 27, 2004 - 12:05PM

    Perth junior miner Gleneagle Gold Ltd said recent drilling success at its Peak Hill Goldfield projects had more than doubled its global resource to 673,300 ounces.

    Gleneagle said recent drilling at the south end of the Yarlarweelor deposit had added more than 105,000 ounces of gold.

    Independent consultants RSG Global have estimated a total resource in the area of 196,500 ounces.

    Results from the latest drilling showed that while grading in the Yarlarweelor area was slightly lower than previously announced the resource was larger with 3.06 million tonnes at 2.0 grams per tonne (g/t) up from 1.27 million tonnes at 2.2 g/t.

    The twin Peak Hill projects now have an estimated resource of 4.95 million tonnes at an average 2.1 g/t.

    Gleneagle said the magnitude of the resource upgrade within the first six months of ownership of Yarlarweelor highlighted the geological prospectivity of the region.

    The miner said the drilling program which cost about $500,000 had delivered the additional 105,000 ounces of resource for a cost of $4.75 per ounce of resource.

    "It's a major step towards the company's goal of using cash flow from gold production to fund ongoing aggressive exploration programs on the company's 1,400 square kilometres of highly prospective tenements in the Peak Hill Goldfield," Gleneagle managing director Ian Prentice said in a statement.

    Drilling is set to resume at the Twin Peaks Fortnum Gold project in early February with an exploration budget of at least $1.0 million for the period through until the end of June 2004.

    The program will focus on strategic drilling to test specific zones within and along the Yarlarweelor strike and targets generated through resource modelling.

    The program will also look at a number of other advanced projects within the Peak Hill goldfield including Horseshoe, nathans Labouchere and Durack.

    Gleneagle said that, as a result of the latest drilling success, it would commence a scoping study to determine the most appropriate route to convert the global resource to a mining reserve.

    The study will also provide an assessment of the estimated cost of recommissioning the company's 1.0 million tonne per annum Fortnum project treatment plant.

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