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1 About Convergent ASX Code: CVG CVG owns 100% of the Bounty Goldfield in Western Australia with 872,000 ounces of gold Our Aim CVG s key objective is to define high grade gold and to recommence gold production from the Bounty Goldfield, WA. ASX ANNOUNCEMENT 24 th January 2012 Second open cut mine at Bounty provides evidence for high-grade gold beneath the pit Today s Market Snapshot Shares on Issue: ~ 133m Today s Price: $0.052 Market Capitalization: ~$6.9m Evaluation of previous drilling at the Earl Grey Gold Mine reveals high-grade gold intercepts including: Contact Details David Price Chief Executive Officer Hamlet Hacobian Chief Financial Officer Phone (02) Facsimile (02) Level Walker Street North Sydney NSW, 2060 Further Information info@convergentminerals.com Website g/t gold 39.38g/t gold 24.42g/t gold Gold mineralization continues with lateral offsets north from Earl Grey, through the Darjeeling Gold Mine and the Jasmine Gold Mine over a strike distance of 1.5km In-house mineralization modeling outlines abundant drilling targets beneath and between each open cut mine Less than 2% of previous drill holes are deeper than 100m from surface An extensive drilling program is planned for P a g e
2 The Convergent Minerals geological team has recently completed 3- Dimensional mineralization modeling at a second open cut gold mine within the Bounty Goldfield in Western Australia. This modeling has revealed high grade gold at the Earl Grey Gold Mine, with gold mineralization also occurring beneath two further mines to the north of Earl Grey. The image below (Figure 1) shows the gold lodes identified (in red) from the Company s recent analysis. This image includes 3 open pits Earl Grey, Darjeeling and Jasmine gold mines, which are all owned 100% by Convergent Minerals. Figure 1: A 3D image underneath Earl Grey gold mine looking towards the north. The gold (shown in red) has been delineated by previous drilling. The Irish Breakfast Prospect, Darjeeling and Jasmine gold mines stretch for 1.5km to the north of Earl Grey and gold remains open and strong at depth beneath every pit. The Irish Breakfast Prospect (shown in Figure 1) has not been mined yet and offers the possibility for open cut extraction for the Company. Gold grades, intersection widths and depth potential appear similar to those observed at Earl Grey, Darjeeling and Jasmine mines, with the best drilling intersection from previous drilling at Irish Breakfast being g/t gold at 82m below the surface. 2 P a g e
3 Similar to the reappraisal at Blue Vein Gold Mine, the recent re-evaluation process has involved raising the low-grade cut-off from 0.50g/t (used by Hellman & Schofield in 2010), to 2.50g/t gold. This has the effect of eliminating all assays below 2.50g/t gold and highlights the location of the higher grade gold. Earl Grey Gold Mine, together with Darjeeling and Jasmine mines, is located approximately 4km northwest of the Bounty Main Gold Mine. All 3 mines were mined by Posgold Limited and subsequently Forrestania Gold NL between 1995 and 1996 using open cut mining methods. Mining was undertaken simultaneously from Earl Grey, Darjeeling and Jasmine open pits for a total of 40,000 ounces of gold produced from 569,544 tonnes of ore mined. Exploration drilling subsequent to mining was undertaken by Viceroy Australia Pty. Ltd. and Montague Resources Australia Pty. Ltd. (a 100% subsidiary of Convergent Minerals Limited). Results from this exploration drilling include the following intervals (Table 1) located beneath the Earl Grey open pit. Gold values beneath the Darjeeling and Jasmine gold mines have not been included in this table. Convergent Minerals Limited Earl Grey Gold Mine High grade drilling results from previous drilling Hole North East From To DH Width Gold Number MGA94_Z50 MGA94_Z50 (m) (m) (m) (g/t) EGC EGC VTWP VTWP EGC FTWP_ FTWP EGC MHDG TMHP TMHP Table 1: Best drilling results from previous drilling programs beneath Earl Grey Gold Mine. 3 P a g e
4 Previous drilling at Earl Grey, Darjeeling and Jasmine has traced the high grade gold over 1.5km in length and gold appears to continue both north and south beyond the pit limits. Management considers the depth potential for high grade gold to be outstanding, with mineralization identified 120m below the surface in previous drilling. Only 1.36% of drill holes have been drilled below 100m from surface. This has resulted in Convergent identifying multiple new targets at depth and drilling is planned to test the depth extension at Earl Grey initially during Figure 2: A Long Projection of the Earl Grey Gold Mine, including the Darjeeling and Jasmine gold mines looking towards the west. The image shows the higher grade gold (blue dots) which are all +10g/t gold extending beneath all 3 open cut mines. CVG s targeted drilling zone is shown in light brown shading beneath each of the open cut mines. Note in Figure 2 above, that a concentration of pink dots (+5g/t gold) and blue dots (+10g/t gold) occurs at the Irish Breakfast Gold Prospect which has not been mined. 4 P a g e
5 The Image below (Figure 3) locates the Earl Grey Gold Mine in relation to the Bounty Gold Mine and the other 10 old open pit gold mines owned by Convergent Minerals. Figure 3: Location of the Earl Grey Gold Mine in relation to the other 10 gold mines owned by Convergent Minerals A Program Of Work (POW) is being prepared which will permit Convergent to conduct an extended drilling program along the Earl Grey Jasmine mine trend. It is expected that drilling will commence in early 2012 with the aim of drilling at depth beneath the Irish Breakfast Prospect and the Earl Grey, Darjeeling and Jasmine mines. A comprehensive drill program has been designed in preparation for drilling. The Company will advise the market when drilling commences. 5 P a g e
6 PHOTOGRAPHS The Irish Breakfast Prospect at Bounty has not been mined yet. Best assays from drilling at Irish Breakfast Prospect include g/t gold and 6.81g/t gold. Drilling beneath each pit has intersected high grade gold and the best 2 intersections are quoted below for each of the pits. Earl Grey Gold Mine 73.80g/t gold 39.40g/t gold Darjeeling Gold Mine 6.93g/t gold 6.72g/t gold Jasmine Gold Mine 16.90g/t gold 7.58g/t gold 6 P a g e
7 About Convergent Minerals Convergent Minerals Limited (ASX: CVG) is a Sydney-based, gold-focused resources company listed on the Australian Securities Exchange. The Company s main asset is the Bounty Goldfield, located approximately 100km south of the town of Southern Cross in Western Australia. The Bounty Goldfield comprises 10 open cut gold mines where CVG is aiming to define between 1.5 million and 2 million ounces of gold** beneath the open cut mines, with a view to mining from in-pit decline underground access. The Bounty Goldfield includes a tenement package of km 2 centered on the Bounty Main Gold Mine, which produced more than 1.3million ounces of gold over a 12-year period between 1989 and The Company is strongly focused on near-term mining opportunities at the Blue Vein and Earl Grey/Darjeeling/Jasmine Gold Mines all part of the Bounty Goldfield. Further Information Website ** this potential quantity and grade of gold is conceptual in nature. There has been insufficient exploration to define a Mineral Resource of this magnitude and it is uncertain if further exploration will result in the determination of a Mineral Resource. The information in this document that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr. David W. Price, who is a Fellow of The Australasian Institute of Mining and Metallurgy, a Member of the Australian Institute of Geoscientists and a Member of the Australian Institute of Company Directors. Mr. Price 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. Price, who is an officer of the Company, consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. 7 P a g e
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