Giving you all the latest in Stock Market Information as it happens...


GOA Brazilian Gold Mining Permit Granted

GU Permit granted enabling the mining of up to 50,000 ore tonnes of gold “ore” per annum. Mining aimed at generating information for Mining Lease feasibility study. Permit granted for 11 months to 29 May 2011 with right to apply for a 12 month extension. The GU covers the area where 5 veins have been identified, each with expected strike lengths over 1km and vein widths averaging 1.0 m. Targeting gold grade of 20g/t. Veins expected to have significant down-dip extensions. At the nearby Palito Mine veins extend down dip to over 200m. Gold production to commence following the earlier of the GOAB processing plant arriving on site or agreement reached to toll treat Sao Chico ore at a processing plant located in the region. Gold Anomaly Limited (the “Company”) advises that the Brazilian Departamento Nacional de Producao Mineral (DNPM) has granted Waldomiro Martins (WM) a GUIA De Utilização (GU – No 02/2010) over the Sao Chico property in the Tapajos region of Para State in Brazil. The grant is for an eleven month term commencing 29 June 2010 and expiring 29 May 2011 and follows the previous grant of an Environmental Operating Licence to WM. The GU has been issued with respect to Alvara De Pesquisa (AP or Exploration Licence) No 12.836 held by WM. Gold Aura do Brasil Mineracao Ltda (GOAB, 100% owned subsidiary of Gold Anomaly Limited) intends to undertake gold mining and exploration activities permitted under the GU on behalf of WM in accordance with the terms of an Agreement previously entered into with WM. The GU covers an area of 56.50 ha in the SW corner of the AP and includes up to 1.0 km strike length of the 5 main veins. The remainder of the approximate 1,418 ha AP is the subject of an active exploration program as described below. The GU can be extended for a further 12 month term and provides for the mining and processing of up to 50,000 tonnes of gold bearing material per annum. A requirement of the grant is that a feasibility study is undertaken during the up to two years of tenure to determine if a larger gold mining operation is economically viable. When the plant is delivered and fully commissioned it will have a capacity of over 100,000 tonnes per annum (20 hours per day, 30 days per month) . The Company plans to commence open pit mining of gold bearing veins at a rate of 50 tonnes of ore per day before progressing towards the planned production rate of 100 tonnes per day (30,000 tpa). At the targeted grade of 20g/t this would result in some 20,000 recovered ozs of gold pa. While a grade of 20g/t gold is being targeted and test work to determine if this is achievable will be undertaken, it should be noted that this grade is conceptual in nature and that there has been insufficient work undertaken to date to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource. GOAB recently advised that it has commenced a Feasibility Study (FS) on the economics of underground mining of the gold vein shear systems at Sao Chico on behalf of the owner, WM. A major component of the FS is the recently commenced detailed Induced Polarisation (IP) survey of the main vein area together with broad electromagnetic (EM) coverage of the entire AP. Other work will include stream sediment sampling, soil sampling, rock sampling, geological mapping and petrology. More detailed follow-up will be undertaken on delineated IP and EM anomalies. If as expected the feasibility study indicates a commercial operation would be economic, a Mining Lease will be applied for. It is reasonably expected that the exploration program and the IP surveying in particular will outline further shear hosted sulphide veins especially in the alluvial covered area topographically above the known veins to the south as well as delineating lateral extensions of the 5 known veins that are present within the GU. These veins are interpreted to extend for up to 1km along strike and average 1.0m in width and are open at depth. Processing Plant Shipment Update It has previously been advised that a “state of the art” gravity gold processing plant has been purchased by GOAB for the project and shipped to Brazil but has missed its connection in Panama. On legal advice received, the shipment will now be held in Panama and shipped from there as soon as the necessary importation permits have been received. As a consequence, GOAB has commenced negotiations on alternative interim gold processing options that would minimise any negative cash flow impact. About Sao Chico The Sao Chico project is located along a prominent NW-SE trend which is the most mineralised zone within the Tapajos Mineral Field in Brazil. The Tapajos field was the site of the biggest gold rush in Brazilian history mainly in the late 1970s and 1980s when approximately 500,000 garimpeiros [alluvial miners] rushed to the area to exploit extensive areas of newly discovered alluvial gold. Approximately 20-30 million ounces of gold were produced [unofficial figures] from these operations before the easily won alluvial gold deposits were largely depleted. The Garimpeiros have little expertise in underground mining and environmental considerations and were thus urged by the government to consolidate their small claims and form joint ventures with established mining companies. The area has had little exploration by modern exploration methods compared to any other equivalent gold fields in the world. The Sao Chico project site is located adjacent to the Trans Garimpeiro Highway [unsealed] and is also serviced by light aircraft from a nearby dirt airstrip. It was the site of an alluvial gold rush and some underground mining of veins within the weathered horizon as well as limited mining in the underlying unweathered sulphide zones. Sampling of the sulphide zone vein material by GOAB has returned an average grade of 15 g/t Au, determined from over 100 samples. Gold grades and production from the weathered zone were reported to be erratic in the supergene (weathered and oxidised) zones of the veins and the Company is targeting a grade of around 20g/t from these zones. While a grade of 20g/t gold is being targeted and test work to determine if this is achievable will be undertaken, it should be noted that this grade is conceptual in nature and that there has been insufficient work undertaken to date to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource. GOAB’s investigations have revealed that the veins are weathered to depths of up to 10m below the alluvial cover and that the weathered veins are amenable to free digging by excavator. Preliminary test work has indicated that a high gold recovery can be achieved by gravity concentrating techniques. The Company plans to mine the weathered vein material by open cut methods under a GU licence to generate a quick cash flow and to provide a better understanding of the mineralisation as part of a feasibility study in preparation for applying for a Mining lease to mine the underlying sulphide zone mineralisation The initial mining operation will be undertaken under the GU which provides for mining and processing of up to 50,000 tonnes of gold mineralised rock per year for up to two years. Over the expected strike length of the identified five veins (an expected combined length of at least 5km) it is anticipated that there is sufficient tonnage available to sustain an operation commencing at a rate of 50 tonnes per day and increasing to 100 tonnes per day after two months. At the targeted gold grade of 20g/t, (see comment above), monthly production of around 2,000 ounces would be expected. Gold recovery will be undertaken via gravity concentration and a suitable processing plant has been purchased from Gekko Systems of Ballarat in Australia. Tailings dam capacity is available and can be readily expanded as required. There is an ample water supply available from an on-site dam and there is abundant water available from the numerous shafts developed in the area. Access is excellent as the property lies within a cleared farm area and lies along the main arterial road in the region. GOAB considers there is excellent potential for the discovery of further gold mineralised veins during the feasibility study exploration program currently underway. The Company’s immediate focus is commencement of gold mining activities at the high grade gold project at Sao Chico in Brazil and the continuing evaluation of the potentially large Crater Mountain gold project. It is also progressing its Fergusson Island gold project in Papua New Guinea and seeking a joint venture partner for its encouraging vein style polymetallic discovery (zinc-tin-copper-silver dominant) at Croydon in north Queensland. Postal Address / Registered Office Level 4, 15-17 Young St Sydney, NSW, 2000 Australia Gold Anomaly Limited ABN 75 067 519 779 For further information regarding Gold Anomaly please contact: Ken Chapple or Greg Starr Executive Director Executive Chairman Mb +61 (0) 418 758 301 Mb +61 (0) 414 906 611 Or visit the GOA website