A.I.S. Resources Initiates Due Diligence for Yalgogrin Orogenic Gold Project

A.I.S. Resources Ltd. reports that due diligence has been initiated on the Yalgogrin orogenic gold project with a comprehensive review of Reverse Circulation (RC) and Air Core (AC) drilling sample trays and surface samples and also the detection of six reefs located in Sheehans historic mine region.

The in-depth data has been entered into Mapinfo and Micromine software. Assessment of rockchip samples revealed that four samples contained fire assay gold values of YR8 1.756, 1.012 g/t YR21, 4.82 g/t YTRD, and 4.89 g/t YR74, along with the presence of silver.

Six Reefs Discovered on EL6030

A group of workings, located about 10.1 km southwest of Yalgogrin, comprises the Sheehan Mine, the Rowe and Prestons Mine, and the Asia-Wyalong Mine, which were staked as EL6030. Additional research has detected six reefs in the area of the Asia Wyalong–Sheehans historic mine.

Magnum Gold NL carried out some auger drilling earlier in 1990. The major workings include three shafts measuring up to 91.5 m deep, winzes, crosscuts, drives, stopping, as well as shallow pits that extend approximately 15.3 m across the surface.

Previous work was largely conducted between 1932 and 1936 on several quartz veins, which measured between 0.76 and 2.2 m wide and strike 340° with a near-vertical dip.

Overall, six parallel reef lines lie within a strip measuring 60 m wide. The reef lines run parallel to the cleavage and contain many smaller crosscutting veins. Reportedly, the richest gold has emerged from the intersection that lies between the smaller veins and the main veins. For the record, a total of 21.225 kg of gold was obtained from ore that yielded 36 g/t (1.15 troy oz) gold (Au) up to 1936.

Exploration Strategy for the Yalgogrin Gold Project

Huge tonnage, ranging from low- to medium-grade deposits, is present on the primary exploration targets on EL 5891. These deposits are amenable to open-pit mining. High-grade resources are present on the secondary exploration targets on EL 5891. These resources are amenable to underground mining.

The tenement is believed to be prospective for such kinds of mineralization because of:

• High-grade rock chips
• Historical high-grade gold mining
• Widespread gold in soil anomalism
• Widespread low-grade rock chips
• Widespread mineralization intercepted in drilling
• Intersecting mineralized vein sets
• Extensive mineralization detected in trench sampling
• Extensions to familiar mineralization construed from high-resolution geophysics
• Distribution of historical workings
• Location in a historic gold field inside a regional setting comprising huge tonnage deposits that have been extracted
• Huge resources that have been detected in analogous settings worldwide

Exploration at the Yalgogrin Gold Project

Interpretation of a target, spanning from 250,000 to 350,000 m³, extends from the Hollande prospect to Walsh’s prospect. This target has been established from three costeans and 21 drill holes (such as RC and AC).

The body dips at around 30° to the southwest and interpreted down to 35 m, which approximates the base of oxidation demonstrated by aircore refusal. Within the target, the average intercept grade varies from 0.5 to 2.5 g/t Au.

Based on simple pit outline, the waste-to-ore ratio of the interpreted body is about 2:1. The mineralization remains exposed along strike to the northwest of Hollande as well as to the southeast of Walsh’s prospect.

The quality of the comprehensive records kept by the vendor is impressive. All files are up-to-date, and reports lodged. The data is easy to access. We look forward to completing the due diligence when we visit the property in the week commencing 27^th July. The grades of gold and mineralogy are very exciting.

Phillip Thomas, President and Chief Executive Officer, A.I.S. Resources Ltd

Rehabilitation work has been finished and the report has been lodged satisfactorily for the 27 RC and air core holes and also for 69 auger holes.