At the Highway gold deposit, 37 kilometres south of Charters Towers, gold mineralisation occurs in several stratiform layers and is enriched near the surface by lateritic weathering. The host rocks of the mineralisation are ferruginous and baritic, intensely sericitised, kaolinised and silicified rhyolitic tuffs and pyroclastics of the Cambrian-Ordovician Mount Windsor Volcanics. The geology of the deposit is illustrated in Figures 1 and 2._x000D_
Forty-six reverse circulation percussion drill holes were completed by North-Queensland Resources N.L. for a total of 2,093 metres of drilling to further outline and test the open pit resource. The drilling indicated a resource of 171,000 tonnes averaging 4.4 grams per tonne gold and 5.0 grams per tonne silver._x000D_
A shallow initial pit, approximately 30 metres deep, has been designed to mine the high grade upper portion of the western stratiform layer and part of the eastern layer. This initial pit is designed to mine 45,400 tonnes of western mineralisation at an average grade of 7.84 grams per tonne gold and 22,200 tonnes of eastern mineralisation at an average grade of 1.42 grams per tonne gold. Waste is estimated at 110,900 tonnes.