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The Syama deposit is one of a number of deposits and geochemical anomalies along the Syama thrust zone. Potential for future exploration success within the tenure is considered excellent. 

The ore body is refractory due to gold being intimately locked in pyrite. In addition the ore has a high organic carbon content (graphite). The graphite redeposits gold from solution thus affecting recoveries in CIL. Because of the graphite and refractory gold, roasting has been used to oxidise the pyrite and liberate the gold for recovery in the CIL circuit. Graphite is destroyed in the process of roasting. Overall gold recoveries of up to 83% have been achieved in operations previously but recent test work demonstrates recoveries in excess of 87% in the revised flow sheet. 

## Geological Resources 

The revised resources calculated by Resolute in February 2004 amount to 47.8 million tonnes @ 3.0g/t Au for 4.53 million ounces of gold and are summarised by JORC category in the table below. Much of the deposit is categorised as Indicated merely because of drill spacing and additional drilling is required to convert these resources to the measured category. 

Syama - Insitu Resources as at 30 June 2004 - 1g/t cut off grade (including Reserves) 

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The revised resources are similar to those reported by Randgold although they are not directly comparable due to the use of different modelling techniques, additional drill hole data and a more conservative allocation of mineralisation into the resource categories. 

## Reserves 

The open pit contains reserves of 12.8 million tonnes @ 3.9g/t Au for 1.62 million ounces (using a cut off grade of 1.75g/t). The pit has a strip ratio of 4.7:1. 

The bulk of the reserve is currently categorised as probable, but it should be noted that there is historical data from mining and grade control over a vertical depth of 180m that supports the grade reconciliations between the reserve model and mining. Therefore there is a high level of confidence with the probable reserves as currently defined. 

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It is anticipated that with additional drilling, especially towards the base of the new pit design, that a significant proportion of the reserves will convert to proven reserves and that additional reserves will be defined within the pit. 

Syama - Ore Reserves as at 30 June 2004 

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## Pre-feasibility Results 

Technical studies undertaken since April 2003 have demonstrated that the Syama Project is viable at current gold prices. 

A new proven and probable reserve of 12.8 million tonnes @ 3.9g/t Au for 1.62 million ounces has been defined within a pit 300m deep. The reserves are contained within a total resource of 4.53 million ounces (47.8 million tonnes @ 3.0g/t Au). 

The ore body below the pit remains robust with a recent intersection of 105m @ 3.65g/t Au in the Main Zone (between 371m and 476m). This is 400m below surface and approximately 100m below the new pit design. 

