Golden Cross Resources March 2013 Quarterly Report

Copper Hill – Molong Project

The company most recently modelled a mine and mill scenario with a production rate of 8 million tonnes of ore processed per year yielding a concentrate grading 25% copper and 22 g/t gold over a mine life of 7 years. At this scale, the project model demonstrates positive cash flow, but at rates of return that are unlikely to attract finance from conventional Western sources.

The Company has now determined to recommence exploration within the Molong exploration licence beyond Copper Hill with a view to increase resource tonnage and, potentially, grade. A 5,000 metre drilling program has been designed to test four mineralised prospects adjacent to, and along strike from the Copper Hill resource.

Other Projects
Cargo – an in-house, manual resource estimate was completed to allow financial modelling of selective mining approaches of higher grade gold zones. The study indicates in-fill drilling is required. Metallurgical results indicate further test-work is likely to deliver improved results.

Cobar Region – deep drilling planned for Burra in the current quarter.

South Australia – GCR advised of final sign-off by DMITRE of GCR’s Exploration Work Approval. Drill sites have been marked out northeast of Coober Pedy in the Oolgelima EL 4427 and drilling contractors invited to tender.

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