The following is an amended version of the announcement made earlier today to reflect that three holes have been completed rather than two.

Transcription

1 (A.B.N ) P.O. Box 7996 Telephone: (07) Gold Coast Mail Centre Facsimile: (07) Queensland AUSTRALIA Internet: 27th February 2006 Australian Stock Exchange Company Announcements Office AMENDED ANNOUNCEMENT The following is an amended version of the announcement made earlier today to reflect that three holes have been completed rather than two. TasGold Ltd P.A.McNeil, M.Sc. Managing Director

2 P.O. Box 7996 Telephone: (07) Gold Coast Mail Centre Facsimile: (07) Queensland AUSTRALIA Internet: 27th February 2006 Australian Stock Exchange Company Announcements Office Announcement (A.B.N ) THREE DIAMOND DRILL HOLES COMPLETED INTO COHERENT 3D IP ANOMALIES WITH COINCIDENT SOIL GEOCHEMISTRY, ALDEBARAN PROSPECT Drill testing of coincident conductivity, chargeability and/or resistivity 3D Induced Polarisation geophysical and zinc + lead soil geochemical anomalies commenced at the base/precious metal Aldebaran Prospect, SMRV Project, Tasmania in early-february and three holes have now been completed for 459.5m. The primary target is a high-value polymetallic volcanic hosted massive sulphide (+ gold) deposit similar to the World Class Rosebery Deposit / Mine, which is located ~125km to the north in the same Mount Read Volcanic sequence, with >32 million tonnes at 14.6% zinc, 4.5% lead, 146g/t silver and 2.3g/t gold. Mapping has revealed extensive and encouraging regional VHMS-like chlorite and sericite alteration, with local pervasive silica, within a footwall unit similar to that at the nearby Wart Hill Prospect. A large Cambrian age mineralising hydrothermal system was apparently active at Aldebaran and the area s overall prospectivity has been confirmed by various geological, geochemical and geophysical evidence, plus the drill holes completed to date. The strongest mineralisation intersected in TasGold s first drill hole (V34-1 of January 2004)) was 1.2m grading 1.24% Pb, 1.22% Zn and 13g/t Ag, from 21.8m downhole, in broken quartz - galena veins. The widest intersection downhole was 27m grading 0.10% lead and 0.34% zinc (from 106m to 133m), in the entire intercept of a vitric rich volcaniclastic siltstone, within 100m of strong, pervasive sericite-silica-fe-mn carbonate alteration (36 to 136m). Hole ALD002 targeted lead and zinc anomalies in soil coincident with prospective lithologies and a 3D IP resistivity high that extends to 75m+ depth, plus copper in soils partly coincident with an extensive chargeability high that extends to depth. The hole intersected the host horizon and below it was a 42m mineralized interval of strong grey silica sericite altered quartz-phyric volcanic, crosscut by thin veinlets, disseminations, and spots and clots of galena+/-sphalerite (80 to 122m downhole). The mineralised interval coincides closely with a resistivity high and assays are awaited. The large size of the alteration zone, types of alteration observed, host lithology, strong zinc, lead and silver in soil geochemistry, strong and cohesive conductivity and chargeability anomalies from the 3D IP and style of mineralisation observed is representative of a VHMS system. It is anticipated that an additional hole will be completed at Aldebaran during this drilling program.

3 ALDEBARAN (V34) PROSPECT INTRODUCTION The Mt Osmund syncline is proximal to and covers prospective VHMS prospects including Aldebaran (V34), Wart Hill (V19), North Wart (V33), East Camp (V29) and Taurus (V22). The zone includes the Wart Hill and Hudson River volcanics folded around the core of the syncline, which is composed of the Waterloo Creek volcaniclastics and the siliclastics of the Owen Group. The area was extensively gridded, soil sampled and mapped by Geopeko Ltd in the early 1980 s. This work identified the bulk of the existing prospects in the district. The Aldebaran Prospect was delineated by gridding the eastern side of the Mt Osmund syncline searching for repetitions of the Wart Hill VHMS lithologic horizon. A strong linear coincident Pb, Zn and Fe soil anomaly is located over rhyolitic volcaniclastic sediments and quartz-feldspar-biotite lavas. The soil anomaly extends for more than 1.5 kilometres in length and is approximately 200m wide. An extensive moderate Pb-Zn anomaly is located in the SE of the grid area. No Au geochemistry data exists for the grid, however, TasGold geologists have panned gold to 3mm sized nuggets from the associated drainages. Outcrop in the area is poor but the Cambrian volcanics are thought to dip moderately west and strike NNW. They are uncomformably overlain to the east by the Waterloo Creek Group. A 1984 dipole-dipole IP survey identified a weak coincident chargeability anomaly whilst gradient array IP surveys identified a prominent linear resistivity anomaly to the immediate east and parallel to the soil anomaly. These were both low power and resolution (depth) surveys, however the data is still valid. The chargeability anomaly is probably due to disseminated pyrite in chlorite altered volcanics associated with the prospect, modelled as a footwall stringer zone as would be found at the base of a VHMS deposit. The principal basemetal and iron soil anomaly trends NNE sub parallel to a fault through the central portion of the Aldebaran area, with more widespread anomalous soils evident in the southeastern portion of the 3D IP grid area. Lead in soil anomalies apparently best reflect the surface expression of VHMS-related mineralisation. Strong chlorite is locally evident within finer units of the crystal rich volcaniclastics at the host horizon and beneath within the feldspar-phyric footwall volcaniclastics. Sericite is widespread, reaching moderate intensity locally within both the footwall and hangingwall lithologies. The hangingwall crystal-rich volcaniclastics are commonly iron oxidised, perhaps reflecting widespread oxidation following burial of a VHMS system. TARGETING SYNTHESIS The 3D IP survey has provided key 3 dimensional targeting vectors to use in conjunction with other geological and geochemical aspects of the Wart Hill /Aldebaran region. GEOLOGY Lithologies in the Aldebaran (V34) area are apparently a folded repeat of the VHMS hosting volcanics at Wart Hill, ~1.5km away on the western side of the Ordovician-aged Osmund Syncline. The area is dominated by variably quartz-phyric volcanics, with the footwall comprising feldspar dominant volcaniclastics, a host sequence marked by quartz-feldspar+/-biotite porphyry with intercalated fine grained variants of the footwall and hangingwall volcanics and a hangingwall comprising massive quartz-feldspar crystal rich volcaniclastic sandstone. Chargeability highs are evident mostly within the footwall volcaniclastics, but locally extend through the host horizon into the hangingwall crystal-rich volcaniclastics. Host horizon lithologies coincide with both resistive and chargeable zones, whereas the hangingwall volcanics are clearly delineated by conductive zones. Hole V34/1 targeted visible galena and sphalerite in augered samples. High in the hole at 21.8m, broken qtz-gal veins returned 1.2m grading 13g/t Ag, 1.24% Pb and 1.22% Zn. The major significant interval being 27m grading 0.1% Pb, 0.3% Zn (from 106 to 133m), representing the entire interval of a volcaniclastic siltstone. The porphyry beneath the volcaniclastic siltstone is similarly Pb-Zn mineralised to that above it. If the stratigraphic facing is west as inferred then this mineralisation possibly represents influence from a nearby feeder zone to VHMS. The base metal in soil anomaly immediately west of the V34/1 collar is stronger than the extensive elevated base metals in the footwall to the west, possibly being seafloor focused VHMS, stratigraphically above the basalt in the top of V34/1. The dominant sedimentation style in the Aldebaran area is high density turbidite flows. Facies are typically finer that those at Wart Hill, with an identifiable debris flow not yet located. A step back drill hole to the west of V34/1 is warranted, time permitting. Footwall Feldspar-phyric Volcanics (FFV) Mapping at Aldebaran has revealed extensive regional VHMS-like footwall chlorite and sericite, plus local

4 pervasive silica alteration within a footwall unit similar to that at Wart Hill. Footwall lithologies are primarily characterised according to the relative abundance of feldspar crystals/phenocrysts, which commonly reach moderate intensity (20 to 60%), with quartz phenocrysts present at weak intensity (0 to 20%). With overprinting alteration these lithologies are difficult to distinguish from porphyry. The principal example of this is the foliated and pseudo breccia textured sericite-silica altered volcanics that crop out east of the basemetal anomalism in the central eastern portion of the grid. These rocks locally have a hyaloclastite porphyry facies appearance, however the siliceous matrix and alteration, as well as mapped continuation of less altered units into the area, suggest they represent altered volcaniclastics. Chloritic feldspar phyric volcaniclastics outcrop sparsely in the area of the chargeability anomaly mx2. Porphyry (P) Porphyry commonly crops out as a massive unit bearing weak coarse quartz phenocrysts, and weak to moderate intensity feldspars, with accessory biotite locally. The groundmass is typically pale green and aphanitic. Host Sequence (HS) The host sequence is represented by intercalated flows of the dominantly feldspar-phyric and crystal rich volcaniclastics. Finer facies in the HS reflect a period of relative quiescence, evidently lying at the time horizon equivalent to the Elliott Bay contact between the CVC and Tyndall Group. The feldspar bearing FFV facies is commonly moderately feldspar phyric with very sparse quartz phenocrysts in the HS. Variants of the HCV are fine grained apparently thin flows, that are well sorted and quartz grain packed. They are very similar to the epiclastic sandstones described from the Wart Hill area. Minor volcaniclastic siltstone is evident locally and given it s close spatial association with the epiclastic like facies, is included in the HS. Hangingwall Crystal-rich Volcaniclastics (HCV) Distinctive quartz-feldspar crystal rich volcaniclastic sandstones form the hangingwall and part of the host horizon at Aldebaran. These units are typically moderate to rich in rounded volcanic quartz crystals (0.5 to 6mm) with weak to moderate intensity feldspar crystals (1 to 3mm), commonly forming a crystal packed texture. The HCV displays textural features that are typical of high density turbiditic mass flows. Basal weakly lapillilithic crystal volcaniclastic sandstone is sparse, but sometimes evident in the vicinity of finer facies from the underlying unit / flow. Massive moderately sorted medium to coarse grained crystal packed volcaniclastic sandstone is widespread, commonly forming intervals that likely exceed 50m in thickness. Flow tops are evidenced by thin regular bedded facies of commonly slightly finer volcaniclastic crystal sandstone. High density mass flow turbidite facies form widespread blanketing deposits, with similar facies being evident throughout the Mount Read Volcanics within the Tyndall Group (e.g. Comstock Tuff and mass flows at Burn s Peak, that are located above the Rosebery mineralised horizon). ALTERATION Strong chlorite is locally evident within finer unit of the crystal rich volcaniclastics at and beneath the host horizon, within feldspar-phyric footwall volcaniclastics. The best chlorite is evident in the far north, near V34/1 and far SE of the IP grid. Sericite is widespread, reaching moderate intensity locally within both the footwall and hangingwall lithologies. Sericite along with silica reaches moderate intensity proximal to Devonian quartz vein hosting fault structures. A unique occurrence of strong pervasive grey to translucent silica is evident along a later Devonian milky quartz veined structure (orientated NNW) through the south western portion of the Aldebaran grid. Weak pervasive silicification is only locally evident. The hangingwall crystal rich volcaniclastics are commonly iron oxidised, perhaps reflecting widespread oxidation following burial of a seafloor exposed VHMS system. MINERALISATION Vein style massive and minor disseminated galena-sphalerite is evident within hole ALD001. The former bears dark brown sphalerite, unlike the honey colour often evident at Wart Hill and probably represents Devonian remobilised mineralisation. Thin irregular stringer pyrite, weakly disseminated base metal sulphide and carbonate spots and veins are likely related to VHMS forming processes.

5 Disseminated pyrite is not commonly evident in outcrop, however, relict boxwork texture is locally preserved. Semi-massive pyrite reaching 15% is located within footwall feldspar-phyric chlorite altered volcanics in the central north of the grid. Leakage basemetal anomalies are commonly coincident with traces of mapped and inferred faults. Note that the main N-S basemetal soil anomaly is coincident with both quartz veined structure and the host horizon. Strongest surface geochemistry is apparently located within the host horizon rather than at the base of the hangingwall crystal rich volcaniclastics, which bear widespread low level basemetals. The latter mineralisation possibly represents poorly focused VHMS, resulting from large thicknesses of mass flow crystal-rich volcaniclastics continually covering / swamping the seafloor exhalative horizon. STRUCTURE All structural data has been collated and data scatter is strong for beds and bands, with interpretation uncertain, reflecting the Devonian overprint on the Cambrian. Stereographic analysis for the entire Wart Hill area for bedding and banding reveals a likely fold plunge of approximately 60 o to 185 o, influencing Cambrian aged rocks. This is at odds to the apparent Devonian trend reflected in Ordovician aged sediments (shallow/moderate to 350 o ), indicating that folding in the Cambrian was significant in this area. A weak Devonian fold trend of 60 o to 345 o is indicated by stereographic plots, but is apparently less intense. This difference could result from the influences of Cambrian and Devonian deformation as well as late wrench faulting. By analogy to the Wart Hill area, a series of west inclined folds with late west dipping faulting / shearing along fold limbs is also likely in the Aldebaran area. A principal feature is the inferred syncline passing ~NNW, immediately west of the horizon drilled by V34/1, ALD001 and ALD002. This structure, whilst complicated by faulting, is evident with the 3D IP resistivity data. A further inferred parallel anticline is likely to be located east of the drilled host horizon and coincident with chargeability highs trending NNE. Fault dislocations are readily evidenced by strong foliation and psueodo-breccia textures, as well as widespread quartz veining. Principal orientations for the quartz veining are 330 o & ~160 o. Foliation is variably developed and intensity typically ranges from moderate to strong, with a few massive un-foliated outcrops evident. Foliation is relatively consistent throughout the Aldebaran area. GEOCHEMISTRY A principal basemetal and iron anomaly trends NNE sub parallel to a fault through the central portion of the Aldebaran area. Drilling from V34/1 returned low level Pb-Zn anomalism. High iron defines the quartz-feldspar crystal rich hangingwall volcaniclastics in many areas. Iron is less elevated although still high (to 2%) over some chargeable footwall / host horizon areas. An extensive zone of elevated Cu and Fe is evident in the south eastern portion of the grid and potentially reflects widespread alteration proximal to a VHMS system. The Pb-Zn anomalies coincident with quartz-feldspar crystal rich volcaniclastics in the Aldebaran area possibly reflect leakage from covered VHMS at depth. Feldspar-phyric CVC like units in the base of this interval representing a period of relative quiescence during which VHMS mineralisation was poorly focused with fresh influxes of minor mass flows. Notably few base metal in soil anomalies exist within chargeable areas, however a few exceptions are apparent, one being the 0.4% Pb peripheral to the mx2 anomaly (see below). GEOPHYSICAL ANOMALIES CHARGEABILITY Outcrop over chargeable zones at surface locally shows evidence of disseminated sulphides, such as at MX1. Sericite and weak pervasive silicification is also locally evident. Pervasive chlorite and minor sulphide occurs both within and marginal to such anomalies locally. An example of the later is location mE, mN where chlorite alteration with trace disseminated sulphide is coincident with ~0.4% Pb in soils. More distal to an extensive chargeable anomaly, but coincident with a weak shallow anomaly is the chlorite, disseminated and locally semi-massive pyrite and local pervasive silicification zone evident at mE mN, which is also coincident with anomalous Zn in soils (0.25%). A significant +600m long chargeable zone (V34 mx3) extending to depth at it s northern and southern ends (V34 mx2) lies in the central southern portion of the Aldebaran IP grid. At shallow depths the chargeability anomaly has tails directed to the east that are possibly indicative of footwall feeder zones. This is in agreement with the local interpreted west facing and dipping volcanic sequence. Highly anomalous basemetals are evident proximal to the west of the anomaly at both ends, within low chargeability zones. The chargeability anomaly is apparently

6 strataform and possibly reflects footwall stringer alteration. The strataform chargeability anomaly has depth extent and plunges moderate to steeply west, linking to an extensive chargeability anomaly at depth to the NW. This anomaly is possibly located on a shallow NNW dipping syncline, as reflected in the fold pattern of the adjacent Denison Group sediments of the Osmund syncline. This may reflect a site for VHMS mineralisation, given that strong alteration (including chlorite, semi-massive sulphides, silica and sericite) is located up dip on the eastern limb in the N of the Aldebaran grid. Elsewhere strong chlorite, one of the best indicators for proximity to a VHMS ore, is localised on the margins of chargeability anomalies. Given this scenario, the northern conductor (Cond2) and associated basemetal mineralisation is possibly an up dip to the east expression of the VHMS system. Mineralisation is apparently low tenor here in disseminated and late vein form, reflecting distal alteration and remobilised leakage respectively. Possible leakage plumes of sulphide are evident as shallow chargeability anomalies in the hangingwall crystal volcaniclastics, particularly to the west of the V34 mx2 chargeability target. A weak chargeability anomaly extends along the eastern margin of the survey area. This is in agreement with an inferred anticline, located between this and the principal drilled basemetal host horizon. V34 mx1 This zone of chargeability is coincident with strong resistivity on its eastern margin, that is postulated to represent a mineralised porphyry intrusion with associated disseminated sulphide. No significant soil geochemistry is associated with this target. Samples directly above the chargeability anomaly are notably Fe deficient, supporting the possibility of a different lithology there. The coincident chargeability and resistivity doesn t provide a first order drill target, however, weakly anomalous basemetals in soils are coincident with a shallowly south dipping conductivity anomaly to the south and Cu is anomalous a further 100m south. V34 mx 2 This high chargeability zone extends to depth at the southern end of the 600m long chargeable zone that was targeted by hole ALD 002. It is located proximal / to east of the northern end of a mapped porphyry and is coincident with elevated Pb, Zn and Ag in soil and chloritic feldspar-phyric volcanics. V34 mx3/4 This is a high chargeability zone extending to depth at the northern end of the 600m long chargeable zone and is proximal / to west of the southern end of a mapped porphyry. It is coincident with elevated Pb, Zn and Ag in soils and base metals in soils to the west conform with a resistivity low / conductivity high (possibly a conductive VHMS target). RESISTIVITY Resistivity is partly coincident with mapped porphyry and weak pervasive footwall silicification. It is also coincident /proximal to late quartz veined faulting. CONDUCTIVITY A +600m elongate NNE to NE aligned conductive zone is coincident with highly anomalous Zn in soils (to 3500ppm). The eastern margin of this body probably coincides with a lithology change. However, considering that (Low Fe) sphalerite rich ore is relatively resistant compared with more Cu rich VHMS ores, Pb-Zn rich VHMS ore will possibly present as less conductive zones within the broader conductive package / host lithology. Supporting evidence is provided by the coincidence of highest soil Pb-Zn geochem with lower conductivity at surface in the V34/1 area. ie. Proximal to the west of V34/1 is a 0.4% Pb and 0.54% Zn anomaly and 200m further south in another relative conductivity low, anomalous values reaches 0.42% Pb & 0.36% Zn in the vicinity of completed hole ALD 002. DIAMOND DRILL HOLE INFORMATION V34/1 was completed by TasGold to 198m in January 2004, as the first hole drilled by TGD in the SMRV Project (and only pre-existing hole at Aldebaran). It targeted visible galena and sphalerite in augered samples. High in the hole at 21.8m, broken qtz-gal veins returned 1.2m grading 13g/t Ag, 1.24% Pb and 1.22% Zn. The major significant interval being 27m grading 0.1% Pb plus 0.3% Zn from 106 to 133m, representing the entire interval of a volcaniclastic siltstone. Individual assays were consistent but low, with peak values of 0.4% Pb and 1.0% Zn. Strong, pervasive sericite-silica-fe-mn carbonate alteration was intersected between 36m and 136m downhole.

7 Figure 1: Aldebaran (V34) Prospect showing IP interpretation, drill holes completed and next potential drill hole with Pb in soils.

8 The alteration was hosted in quartz-phyric lavas and a vitric rich volcaniclastic siltstone, with a low sulphide content overall and minor sphalerite-galena-pyrite mineralisation occurring with Fe-Mn carbonate veining. The zone is evident from geochemical sampling and demonstrates highly anomalous basemetal mineralisation throughout. Other spot highs of sphalerite /galena mineralisation were observed in later Devonian deformation related quartz-carbonate veining. These are common throughout the SMRV and consist of minor, generally insignificant re-mobilised sulphides. The vitric siltstone was strongly foliated, while the altered rhyolite had a weak anastamosing cleavage. Some remobilization of sulphides was evident but folded stockwork quartzcarbonate veining associated with the alteration suggests the mineralisation is of Cambrian origin. The Pb-Zn ratio s support this observation. The hole also intersected several unmineralised zones of chlorite altered feldspar crystal lithic volcaniclastic sandstones of possible andesitic derivation and basaltic andesite dykes. These andesite/basalt units are similar to those observed at the base of the Tyndall Group in the Henty area and have not been noted in the SMRV previously diamond hole ALD001 targeted a conductivity high coincident with anomalous basemetals in soils (to 8g/t Ag, 0.42% Pb & 0.36% Zn) at the northern end of a footwall chargeability anomaly. Minor vein style massive and minor disseminated galena-sphalerite is evident, particularly within several chlorite bearing zones, within quartzfeldspar crystal rich volcaniclastics. Apparently the drilled conductor was sourced in hangingwall quartz-feldsparcrystal rich volcaniclastic sandstones. This unit is commonly oxidised at surface and is a readily tracked feature. ALD002 targeted basemetals in soils (to 3g/t Ag, 0.395% Pb & 0.12% Zn), coincident with the mapped host horizon and a resistivity high extending to 75m+ depth. Copper in soils is elevated in the footwall, partly coincident with an extensive chargeability high that extends to depth. The hole intersected the host horizon comprising quartz crystal rich volcaniclastics, volcaniclastic siltstone and mudstone as well as minor black shale and grey chert interbeds. Beneath this unit is a significant (42m) mineralized interval of strong grey silica sericite altered quartz-phyric volcanic, crosscut by thin veinlets, disseminations, and spots and clots of galena+/- sphalerite from 80 to 122m. Basemetal content varies from 1 to 5% combined through this interval which coincides very closely with a resistivity high. The intersected black shale interbeds are a positive result, indicating a relatively quiet environment favourable for seafloor massive sulphide deposition existed in the vicinity. ALD003 was planned to intersect the peak chargeability anomaly from the 3D IP survey on the Aldebaran grid. The hole has intersected strong carbonate, patchy chlorite and pervasive grey silica-sulphide altered feldsparquartz-phyric (footwall) volcaniclastics and moderately silicified, chlorite stringer veined quartz-feldspar-biotite porphyry. The hole was terminated yesterday at 149.8m. Hole ALD004 commencing today is on site P2, between the hanging and footwall lithologies intersected in holes ALD002 and 003, targeting 0.17% Zn and 0.18% Pb in soil and the resistive zone sandwiched between ALD002 and ALD003 (but ~200m north of ALD002). Assay results are awaited for holes ALD 001 /002 and ALD003 awaits sampling. While, significant massive sulphides are yet to be discovered at Aldebaran, management view results /information from the drilling to date to be encouraging for the eventual possible discovery of such mineralisation.

9 TasGold is focussed on exploration in Tasmania and Papua New Guinea with a policy of Year Round Drilling with its two environmentally friendly, man-portable diamond core drilling rigs. Targets are high-value mineral deposits including various VHMS silver/base metals, porphyry Cu/Au, epithermal, intrusive and skarn related gold. The Company has 1 retention and 3 exploration licences in Tasmania totalling approximately 80km 2 and holds the premier land position in SW Tasmania in the highly mineralised Mount Read Volcanic Province. In PNG, TasGold holds 4 EL applications (2,500km 2 ) itself and has an agreement/jv with South Pacific Minerals Corp (TSX-V: SPZ) that grants a 15% free carried interest to completion of bankable feasibility study + financial closure on all mining leases granted on 3 ELs+5 ELAs (7,500km 2 ). The Company also has ~14.5% equity in South Pacific. For additional information relating to the Company s projects please visit our website at or call me on (08) TasGold Ltd P.A.McNeil, M.Sc. Managing Director The information in this report that relates to Exploration Results is based on information compiled by Mr Peter McNeil of Exploration and Management Consultants Pty Ltd, who is a Member of the Australian Institute of Geoscientists. Mr McNeil has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr McNeil consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.