Quarterly Report March 2014

Key Points:

  • 5,400 metre, $1.6 million, core drilling committed for Copper Hill
  • New ‘Dash Prospect’ discovered north of Copper Hill
  • New gravity-magnetic anomalies in Gawler Craton identified
  • Burra drilling continues, low grade copper intersected
  • Shareholders support Heron Resources’ placement proposal
  • $1.88 million from Heron Resources placement
  • GCR board re-balanced with Ian Buchhorn as new director
  • $2.95 million in cash at quarter end

Shareholders at EGM support Heron Resources placement proposal
Investment proposals, put forward by Heron Resources Limited (ASX:HRR) and then HQ Mining Resources (HQ) in December 2013, were both welcomed by GCR management, as are the intentions expressed by both parties to accelerate GCR’s exploration activities at Copper Hill and at Burra near Cobar. GCR’s coincident gravity magnetic anomalies in the Gawler Craton of South Australia require follow-up gravity surveys to better define the potential IOCG targets.

There is clear confidence shown by both parties in the potential of Copper Hill to be developed. HRR and HQ both support GCR embarking on a major drilling program aimed at discovering additional resources and locating zones of higher copper and gold grades.

Shareholders voted to accept the HRR proposal at the shareholders’ meeting held on 27th February, and the GCR board, meeting on the 28th February, also voted in favour of accepting the Heron proposal. GCR issued 375,970,579 fully paid ordinary shares to HRR at $0.005 per share following receipt of $1,879,853 on 3rd March. HRR’s managing director and geologist/mineral economist, Ian Buchhorn, thus became a GCR director.

HRR and HQ Mining (with its associates) are now GCR’s largest shareholders with 19.9% and 24% interests respectively. GCR now has 1,889 million shares on issue.

At the end of the March quarter GCR held $2.95 million in cash.

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