Peelwood South – EL2934

Status

Balamara completed an initial JORC resource estimate for Peelwood South, located 75km south of Bathurst in central New South Wales.  The JORC resource for Peelwood South has been estimated in the category of ‘inferred’.

It is expressed at cut-off grades of 0% and 4% zinc equivalent.  The estimate is:

• 259,060 tonnes at 5.45% zinc equivalent (0% zinc equiv cut-off grade)
• 105,400 tonnes at 12.04% zinc equivalent (4% zinc equiv cut-off grade)

The Peelwood South resources are separate and additional to the previously announced Peelwood North resource. As a result, this inferred resource has the potential to supplement any future mining operation at Peelwood North.

History

Peelwood South is an historic silver and base metal mining area and is located approximately 1km SSE of Sultan Corporation Limited’s Peelwood North project.

Results from all recent and historical drillholes were used to calculate the resource. Twelve diamond core holes were drilled at Peelwood between 1951 and 2002. Balamara augmented this historical data by drilling a further three diamond holes for 467.7 metres in the April-May period of 2008.

The nearby historical Peelwood mine and Central Hill prospect and the more distant Mount Costigan mine and Single Tree Hill prospect all contain commercially extractable mineralisation and have not been fully investigated.  Each of these historical old mines or prospects has the potential for Peelwood North style mineralization that will supplement the existing Peelwood North resource.

Any future exploration of the Peelwood prospects will be directed towards increasing the JORC resource of the Peelwood North deposit and finding additional mineralisation at other nearby locations.