JV with Teck Cominco

	MUNDI PLAINS PROJECT, BROKEN HILL New Joint Venture with Teck Cominco to test lead-zinc-silver and copper-gold targets PlatSearch is pleased to advise the signing of a joint venture agreement with Teck Cominco Australia Pty Ltd (Teck Cominco) on the Mundi Plains (EL 6404) and Junction Dam (EL 3328) tenements. The Mundi Plains tenement is located approximately 45 kilometres northwest of Broken Hill, NSW and is held by PlatSearch 100%. The Junction Dam tenement is in SA, to the west of and adjacent to the Mundi Plains tenement and is held by PlatSearch 80% and Eaglehawk Geological Consulting Pty Ltd (Eaglehawk) 20%. Both tenements are considered to be prospective for large, Broken Hill style lead-zinc-silver deposits and Cloncurry style copper-gold deposits. The key terms of the agreement are as follows: Teck Cominco will complete, before September 2007, a drilling programme comprising at least 2,000 metres as a minimum commitment; Teck Cominco can earn a 51% interest by spending $2 million; Teck Cominco can increase its interest to 80% by spending a further $2.0 million; When Teck Cominco earns an 80% interest, PlatSearch (or PlatSearch/Eaglehawk in the case of Junction Dam) can participate with a 20% interest or dilute to a 2% net smelter royalty interest. The two tenements cover an area of 650 square kilometres covering one of the most prospective parts of the Curnamona Craton for large lead-zinc-silver and copper-gold deposits and embracing a thick and highly metal-anomalous sequence extending over a strike length of at least 100 kilometres. Most previous drill-holes that have tested this sequence have encountered strongly anomalous base metals and/or precious metals. At Polygonum prospect recent wide-spaced drilling (Inco 2002) discovered a massive sulphide horizon in the Bimba Formation carrying strong lead-zinc values, up to 3.8 metres at 0.95% lead and 8.26% zinc. Beneath the Bimba, the Upper Albite formation is copper-gold anomalous with a best drilling intersection (Savage Resources 1995) of 1.8 metres at 7.4% copper, 6.2 g/t gold and 6 g/t silver. Extensive soil and sediment cover 50-180 metres thick has inhibited previous explorers in this area and drilling to date has been relatively wide-spaced. In the northern and eastern parts of the Mundi Plains tenement the prospective lithologies occupy tight, roughly circular, domal structures (Domes 1-5). At the Dome 5 prospect previous drilling (Plutonic 1997) discovered a classical Broken Hill type lode sequence with at least 120 metres true thickness of stacked, mineralised, garnet-quartzite and banded iron layers, with minor banded lead-zinc mineralisation. At Dome 3 prospect the primary target is a large untested gravity anomaly on the northwest flank of a domal structure. The anomaly is situated in Broken Hill Group metasediments (Parnell Formation, the host sequence for Broken Hill style mineralisation) in a tight structural setting. Previous drilling nearby has shown these rocks to be highly zinc anomalous. The Junction Dam tenement contains a number of discrete magnetic targets that warrant further investigation and drilling. Drilling has commenced on selected targets.
	Bob Richardson Managing Director Please direct any questions to Bob Richardson on (02) 9906 5220 or 0414 592 080. The information on mineralisation contained in this announcement accurately reflects information compiled by R L Richardson, BSc, BE (Hons), MAusIMM, MASEG, Managing Director and a part-time employee of PlatSearch NL a Competent Person (as defined by the Australasian Code for Reporting of Identified Mineral Resources and Ore Reserves), who has relevant experience in relation to such mineralisation and has consented to the inclusion of such information in this announcement.
	Figure 1 - Tenement location
	Figure 2 - Location of key prospects