PlatSearch is pleased to announce the signing of a joint venture agreement with Newcrest Operations Limited (NOL) and the AH Syndicate (AH) regarding the Frome and Poverty Lake tenements located in the Curnamona Province, SA.   The tenements are held beneficially by PlatSearch (50%) and AH (50%).

The Curnamona Province is regarded as highly prospective for copper, gold and uranium deposits and is attracting increasing exploration activity by industry and support by the SA government.  Recent discoveries and developments such as Kalkaroo (Havilah), White Dam Mine (Exco), Beverley Mine (Heathgate) and Honeymoon (Southern Cross) highlight this potential.

The terms of the agreement enable NOL to earn a 70% interest in the tenements by completing expenditure of $2 million within five years of the Commencement Date.  NOL is committed to complete one basement drillhole and a total expenditure of $150,000 within six months of the Commencement Date, (subject to the availability of a suitable drill) and will reimburse PlatSearch the cost of ground magnetic surveys completed by PlatSearch in February 2005.  When NOL earns a 70% interest PlatSearch and AH can each elect to participate in further expenditure with a 15% interest or (a) reduce to a 10% interest carried, via a non recourse loan, up to decision to mine stage or (b) reduce to a 5% interest free-carried to decision to mine stage.  In the case of (a) above, 50% of the carried costs (plus interest) must be repaid to NOL by PlatSearch and AH from 80% of its share of production, but only in the event that a mining development occurs.  At decision to mine stage each of PlatSearch and AH can elect either to participate and contribute its Participating Interest share of Expenditure in the project or convert its interest to a net smelter royalty. 

The Frome and Poverty Lake tenements contain at least eight discrete magnetic anomaly targets and the area is considered to be prospective for iron-oxide associated copper-gold-uranium deposits.  Primary Industry and Resources SA (PIRSA) is conducting gravity surveys currently at one kilometre spacing over the area and these results may identify further targets or reinforce existing targets.  Previous drilling at the Dolores East prospect in an adjacent PlatSearch tenement (Quinyambie Project) discovered a large iron-rich volcanic breccia with strongly anomalous copper. 

PlatSearch NL

Bob Richardson
Managing Director