Cargo Core Drilling Program

First twin hole, SD003, testing near-surface gold intersections at the Spur-Dalcoath Lodes returns 30 metres at 1.89 g/t gold within a broader interval of 63 metres at 1.15 g/t gold

Golden Cross Resources (GCR) has commenced a program of three twin HQ core holes to match against previous reverse-circulation drilling at the Spur- Dalcoath gold targets within the Cargo Project. The Cargo Goldfield lies 15 kilometres west of Cadia and has been mined intermittently for over 140 years. Previous explorers, Billiton Australia(Shell Metals) and Cyprus Gold, drilltested several anomalous gold zones in the 1970’s and 1980’s and defined what may be, potentially, payable bodies of near-surface gold mineralisation.

Using a 0.5 g/t cut-off grade and 2 metre maximum internal dilution interval, SD003 returned:

10 metres @ 0.67 g/t gold from 5m
7 metres @ 0.5 g/t gold from 19m
30 metres @ 1.89 g/t gold from 33m
1 metre @ 38.0 g/t gold from 95m

There is notable internal grade variation within SD003 compared with the twinned hole CRC6, especially within higher grade zones. However, a direct comparison with CRC6 (58m @ 1.10 g/t gold) using a 0.3 g/t gold cut-off gives a slightly longer and slightly higher grade interval from SD003 of 63 m @ 1.15g/t gold.

These intervals are close to true width based on observations of the core and the extensive historical RC drill data set for the Dalcoath-Spur vein system. Selected core from this program will form the basis of metallurgical test-work to determine gold recoveries from a range of processing options.

Spur-Dalcoath

The Spur-Dalcoath area comprises several sub-parallel gold-bearing quartz vein systems with gold-bearing disseminated and veined pyrite +/- chalcopyrite zones, radiating from the central Cargo Porphyry Intrusion.

Close-spaced historical RC drilling generally extends to 50m vertically with a few holes testing deeper targets.

Initial pit optimisations, based on the Cyprus Gold and GCR drill data and using current gold prices, show clear potential for an economic resource to be defined at Spur-Dalcoath to a depth of 75 metres. H&S Consultants has been retained to estimate an Inferred Resource.

Results from the other two twin holes are expected within the next few weeks. SD004 has been logged, cut, and samples delivered to the ALS Laboratory in Orange. Hole SD005 is in progress and initial core is being cut and sampled. SD003’s location is shown in Figure 2 and co-ordinates for all three twin holes are listed in Table 1.

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