## Meekatharra Landbank 

“With availability of funds for exploration constrained, a strategy to maintain an interest in the land was achieved by joint venturing signi fi  cant portions of the Meekatharra landbank.” 

## Strategy 

St Barbara holds a large tenement position in the Murchison region with commensurate signi fi  cant rates and rent commitments. With funds curtailed, a strategy to joint venture ground was implemented. The joint venture agreements require any ore moved to be processed through the Company’s plant. 

## Joint Ventures 

Two joint ventures, Reedys and Polelle, were signed with Elara Mining Limited, with an aggregate earn-in expenditure of $6.25 million. These joint ventures will see continuation of exploration conducted by Gold Fields between February and June 2003 in the Reedys joint venture area and also in the Norie Pluton domain of the Polelle joint venture area, where the Company had outlined a preliminary inferred resource at Mulla Mulla last year. 

Under the terms of the Reedys joint venture, Elara can earn a 51% interest over two years from November 2003 by the expenditure of $3.25 million. An additional 14% interest may be earned by a further $2 million expenditure. The terms of the Polelle joint venture allow Elara to earn a 51% interest over two years by the expenditure of $3.0 million, and an additional 14% by a further $2.0 million expenditure. 

In both cases, St Barbara manages and implements the programmes from existing infrastructure, minimising mobilisation costs and maximising the bene fi  t from the established geological database. 

A further joint venture, Annean, was signed with Aurogenic Resources Pty Ltd, who can earn a 51% interest in approximately 460 km 2  of granted tenements within trucking distances of the treatment plant by the expenditure of $4.0 million over three years, including a minimum commitment of $1.0 million in the fi  rst year from March 2004. Aurogenic has the right to increase the equity position to 70% by the expenditure of an additional $4.0 million over a further two years. The Annean joint venture is being managed by Aurogenic. 

Ground under joint venture at the year end totalled 760 km 2 , with near term expenditure of $6.5 million and potential expenditure approaching $20.0 million. 

## Regional Results 

Exploration expenditure for the year by the Company and joint venture partners totalled approximately $4.0 million. A total of 25,500 metres of RAB/aircore was drilled in 509 holes as well as 17,250 metres of RC/core drilling in 119 holes. 

In fi  ll RC drilling (19 holes for 3,000 metres) of the central part of the Mulla Mulla east mineralised zone gave considerable encouragement, with a best intersection of 8 metres at 16.4 g/t. 

Exploration at Kanji and Miniritchie, 6 km south of Mulla Mulla, advanced through the year. At Kanji in fi  ll and extension drilling has extended the strike length to 900 metres and at the adjacent Miniritchie, the strike length has been extended to 600 metres. 

At the Annean joint venture ground mapping has occurred in the environs of Bluebird and Tuckanarra pits preparatory to formulation of a drill programme for the December 2004 quarter. 

At the Lights of Asia prospect (Cue joint venture) the joint venture partner completed 57 RC holes, with the target zone extended to 400 metres strike and 150 metres down dip. The deposit is described as open to the north and down dip. 

More recently a low level, high resolution aeromagnetic survey was fl  own to identify structural targets under shallow cover in the Cue joint venture ground. 

## Future Exploration 

The Company will, as a consequence of the prospectivity of Paddy’s Flat (having produced 2 million ounces of gold to date) and the joint venturing described above, focus its exploration at Paddy’s Flat, which is 15km’s north of the Company’s Bluebird processing plant. 

