The Mt Gunyan Project is situated 1.5km north-east of the Twin Hills Mining Lease. Drilling carried out by Macmin since 1994 (a total of approximately 260 drill holes) allowed the calculation of a resource. At a 30g/t silver equivalent cut-off, the Indicated Resource is 2.1 million tonnes at 68g/t silver equivalent. The shallow drilling demonstrated that the silver occurred as a near surface low grade envelope within which occurred sub-vertical high grade zones, e.g. 34m at 333g/t Ag (hole MGRC5).

The geology of the project area comprises a thick sequence of tuffaceous 'siltstones' cross cut by a series of sub-parallel zones of silicification and associated quartz veining from 2-15m wide and 100-300m in length The 'zones of silicification' are areas of abundant micro and macro quartz veining with moderately intense silicification of the host rock, but not pervasive silicification of host rocks as seen at the Twin Hills silver deposit.

Drilling by the company during 2007 and early 2008 will be aimed at extending the current resource. This new updated resource information will lead the company to decide upon making an application for a Mining Lease over Mt Gunyan and a subsequent Scoping Study aimed at establishing the economic parameters leading to a mine development.