Myrtle Prospect

The Myrtle prospect was located in 1966 by Carpentaria Exploration Company (“CEC”). Hole MY1 intersected 35.7m @ 0.6% Zn, 0.9% Pb and 6 g/t Ag, and the prospective Barney Creek Formation was recorded to be over 100 metres thick.

Further work then included geological mapping, rock chip sampling, gravity geophysics and further drilling (holes MY2 – MY5), resulting in the delineation of a number of subsidiary sub-basins within the Myrtle area.

No further work occurred until 2004 - 2005, after North Mining Limited acquired the ground. Drilling of holes MY6 and MY7 by former JV partner Anglo-American Plc intersected low-grade zinc mineralisation, similar to that drilled previously in hole MY.

It wasn't until hole MY8 was drilled, and intersected a wide interval of moderate grade mineralisation, that it was realised that holes MY6 and 7 were not deep enough, and so they were deepened, subsequently intersecting mineralisation towards the base of the HYC Pyritic Shale Member.

Holes MY10 and MY12 have also intersected medium economic grade mineralisation, and shown that the prospective mineralised horizon is widespread.

A plan of the existing drilling at the Myrtle prospect is shown below. The early holes drilled in 1966 by CEC, MY1 and 2, were not deep enough to intersect the mineralised horizon.

 Reward EL Geology and Prospect Locations

The spacing between current effective drill holes is quite wide, generally > 750 metres, and up to 1km apart. Anglo-American reported in 2005 that they had defined the limits of a major hydrothermal system of at least 3.3km x 1.6km (> 5.3km²), recommending detailed infill drilling, in particular to the north and south of holes MY6 and MY10 to define the highest grade central part of the system.

Drill intersects now include:

Low-iron sphalerite and galena mineralisation is recorded in 3-5 lenses. The mineralised horizon is estimated at 5-25 metres thick, but is currently only defined by very limited and wide-spaced drilling.

Weak, late channel TEM responses from a survey conducted by Anglo-American (see Figure below for line location) may suggest mineralisation at about 300m depth. Soil and rock-chip anomalies indicate areas where the mineralised horizon may be approaching the surface indicating near surface potential, but more work is required.

 Myrtle Prospect Geology and Drill Hole Locations

 Myrtle Prospect Drill Section Looking North

 Myrtle Prospect Drill Plan