Oroya Mining Limited's Mt Gibson Gold Project, 280 km north east of Perth, is one of Western Australia's more recent discoveries of a major gold resource. Modern gold mining commenced in 1986, on a shallow laterite reserve of 6.62 million tonnes averaging 1.50 g/t gold._x000D_
By the end of 1998, mining had progressed from an initial three shallow laterite pits to a series of 14 open pits with maximum depth of 100 m, on three separate trends with a combined strike length of over 10 km. The Project has yielded 868 400 ounces of gold from 16.5 million tonnes of ore at an average recovered grade of 1.64 g/t gold, from near surface laterite, supergene and primary sulfide ores. This includes a 160 m deep underground decline operation which mined 120 000 tonnes at an average grade of 9.1 g/t gold and a four million tonne Dump Leach on a synthetic base which yielded 68 900 ounces._x000D_
The Project was placed on Care and Maintenance in 1999 pending drilling to refresh reserves. Hosted by strongly tectonised and altered Archaean volcanic rocks within and adjacent to a major regional shear, primary gold mineralisation occurs as structurally emplaced sulfide and quartz lodes. On the main Gibson Trend, multiple zones of mineralisation occur within a zone up to 600 m in overall width._x000D_
The overall footprint of known mineralisation exceeds 20 km2 and the potentially mineralised domain exceeds 100 km2. The current estimate of a combined resource of 9.4 million tonnes averaging 2.47 g/t gold (749 500 ounces) is derived from a database of 10 500 drill holes, of which only four per cent test below 100 m vertical depth. Ore envelopes which remain open at depth and major gaps in the drilling pattern beyond the currently defined resources promise straightforward potential to define additional resources._x000D_
Oroya Mining Limited and its joint venture partner Barrick Australia are targeting a major gold mining operation from this potentially world-class mineralised system. Oroya has the exclusive right to produce up to 500 000 ounces and is working toward the completion of a feasibility study into a resumption of mining using the existing 1986-built 1 Mtpa processing plant. The joint venture is in the early stages of testing the depth and lateral potential of the Mt Gibson mineralised system. Mining options currently under review include progressive open pit extension and amalgamation leading to one or more large open pits, and underground operations. It is too early in the development of the Project to offer definitive economic models of potential large-scale mining operations.