Proactive investors

Coburn Project (Mineral Sands) - Western Australia

This project covers 1200 square km of a fossil coastline which has the potential to host a world class heavy mineral sand field.

Drilling since 2000 has outlined a major heavy mineral sand deposit known as Amy Zone which is over 35 kilometres long, up to 3 kilometres wide and between 10-50 metres thick.

Gunson completed a bankable feasibility study in December 2004 showing that Amy Zone can support a high volume, low cost, long life mining operation producing quality mineral products.

Over the 23.5 year mine life modelled, total revenue is estimated at $A2.2 billion, with an operating cash surplus of $A879 million or $A37 million per annum.

Mount Gunson (Copper) - South Australia

Strategic location in the best endowed copper belt in Australia, the Olympic Copper-Gold Province. This belt is over 500 km long and contains about 75% of the known copper resources in Australia. Olympic Dam is the fourth largest copper and largest uranium deposit in the world, containing some 42% of global uranium resources. Two discoveries since 2000 at Prominent Hill, approximately 100 kms north west of Olympic Dam and Carrapateena, 20 km east of Gunson’s Chianti Prospect, at Mount Gunson, have heightened exploration interest for large deposits in the basement rocks of this belt.

The Project straddles about 10% of the Olympic Copper-Gold belt as four contiguous exploration licences covering about 1,320 square km.

Exploration for large copper-gold deposits in the basement at Mount Gunson is being funded by a subsidiary of Xstrata Copper, which has the right to earn a 75% interest in the Project by spending $A10 million by mid 2013. To date, $A3.35 million has been spent and the current focus is on drilling at Emmie Bluff Prospect.

Copper mineralisation of Central African Copper Belt style is also widespread in the overlying cover rocks and two areas covering the shallow MG14 and Windabout deposits have been excised from the Xstrata Copper farm-in.

In October 2009, the Company announced the results of a Pre-Feasibility Study on the shallowest of the 2 resources: the MG14 deposit, at 25m depth. Open pit mining of this 1.1 million tonne deposit averaging 1.7% copper over 2 years pays back the development cost at a copper price of $US2.70 per pound and an exchange rate of 86 US cents to $A1. A 15 month Bankable Feasibility Study on a sequential development of the MG14 and much larger Windabout deposit nearby commenced in late 2009.

Tennant Creek (Gold - Copper) - Northern Territory

Project comprises two approved exploration licences and three exploration licence applications over a combined area of 107 square km in the Tennant Creek district, as a result of geological targeting work conducted on BHP Billiton’s extensive Australian database by the Company’s geological consultant, Douglas Haynes Discovery Pty Ltd .

The Tennant Creek district has yielded some 5 million ounces of gold and 350,000 tonnes of copper since large scale mining began in 1934. Gold-copper ore bodies in the district are typically high grade averaging 9 g/t gold and 2.1% copper, and are associated with distinctive magnetic anomalies, due to the abundance of the magnetic iron oxide, magnetite.

Significantly less exploration has been conducted in the district for non-magnetic gold-copper ore bodies. Such ore bodies are predicted to occur in the Tennant Creek district, but will not have the usual geophysical characteristics of the known gold-copper deposits. They will be associated with discrete gravity anomalies, with either a very weak coincident or adjacent magnetic anomaly, like Oz Minerals' Prominent Hill and BHP Billiton's Olympic Dam deposits in South Australia.

Gunson’s tenements and tenement applications cover weak magnetic anomalies with associated gravity responses in favourable geological settings, where little or no previous exploration has been carried out. The targets on these areas can be tested quickly and cheaply with ground geophysics and shallow drilling.

A drilling program on the two approved exploration licences is scheduled for the second quarter of 2010.

The other three exploration licence applications lie on aboriginal freehold land and no agreement has been reached for exploration access. This is due to a difference of opinion on uranium mining - the Company's position is that it must be allowed because of the occurrence of by product uranium in the ore.

Fowler's Bay (Nickel) - South Australia

Fowler’s Bay comprises a 700 square kilometre exploration licence located about 150 kilometres west of Ceduna.

The exploration target is craton margin Proterozoic nickel sulphide deposits within a northerly trending belt of magnetic anomalies near the western margin of the Gawler Craton.

Interpretation of the results of an airborne transient electromagnetic (TEM) geophysical survey in the northern part of the Project flown by a neighboring tenement holder in 2007 revealed 2 promising nickel sulphide targets.

These targets, which comprise 2 bedrock TEM geophysical conductors up to a kilometre long, are located in a prominent regional bend in the belt of magnetic anomalies described above.

The magnetic anomalies are interpreted to be Proterozoic mafic and ultramafic rocks prospective for nickel sulphides. Evidence for this comes from widely scattered drill holes completed by previous explorers which penetrated to basement.

The two airborne TEM anomalies appear to occur either side of a basement high expressed by a hill and both have an estimated depth to top of 100 metres or less.

Ground TEM surveys to better define the two anomalies for possible drill testing were completed in December 2008 and April 2009 respectively and a high priority drill target chosen.

The Company's Application to access the Yellabinna Regional Reserve conservation park for a diamond drilling progam is beng processed by South Australian Government authorities and approval is expected in May 2010.