QUARTERLY REPORT

Quarterly Report

Three months ending
31 December, 2001

Cibaliung Project - Banten, Indonesia

Project Highlights

• Field work has been redirected towards defining new drill targets;
• Detailed mapping in the South Cibeber area has outlined new veins;
• An MMI soil survey over North and South Cibeber was completed;
• MMI-based drill hole results report low grade Au-Ag mineralisation;
• Negotiations to gain access to adjacent prospects continue;
• Assessment of new opportunities is ongoing.

Corporate

Change of Office Address

• Effective 19 December 2001 the company relocated its offices to North Sydney.

Expenditure

• Total exploration expenditure for the quarter was A$200,350.

John C. Carlile
Managing Director & CEO
25^th January, 2002

EXPLORATION

Cibaliung Project - Banten, Indonesia

Following the completion of the first phase of drilling, efforts have been redirected towards defining new drill targets in the tenement area.

Detailed Mapping

Detailed mapping was completed over the South Cibeber. Several veins, 10-40cm in thickness trending ENE-WSW and N-S were outlined (see Figure 1). The dimension and structural orientations of the veins suggest that they are probably extensions and splays of the Cibeber Vein. A result of 4.1g/t Au was returned from a massive to crustiform banded vein, 20-30cm wide with grey sulphide along the banding.

MMI Sampling

760 Mobile Metal Ion (MMI) samples were collected over North and South Cibeber. The samples were sent to the ALS-Chemex Laboratory in Perth for analysis. Reinterpretation of the whole MMI sampling results will be conducted when assay results are available next quarter. The MMI anomalies, in combination with the geological data, should assist in further delineation of new drill targets.

MMI-based Drill Hole Assessment

Two holes (AC-043 & AC-044) were drilled in the prior quarter to test MMI anomalies to the west of Cikoneng. Both holes intersected zones of strong shearing and fault gouge, with quartz and carbonate vein stringers and stockworks. This infers the presence of a fault parallel to the Cikoneng trend, but neither hole intersected any well-developed veining.

It is known that gold and silver values are generally low in this style of early stage mineralisation and assay results from the structures in the two holes confirmed this, but also recorded elevated arsenic values (18-132ppm). The presence of early stage veining and elevated arsenic confirms that hydrothermal fluids have been active in these structures.

As a result, further interpretation of the MMI sampling results and structural mapping is being undertaken in an attempt to define target zones where dilational jogs may have developed on these structures or along other structures that interact with them.

Metallurgical Test Work

The Knelson gravity/cyanidation leach results of three ore samples including the full preliminary metallurgical report of Lakefield Oretest Pty. Ltd. have been received. The results are encouraging as they show a slight increase in gold extraction from 90%-92.8% for simple cyanide leach to 91.4%-93.7% for cyanide/gravity combined. This is ascribed to gravity recovering some sulphide-occluded gold as well as the cyanide soluble gold.

Silver recoveries provided similar results with 69.5%-90.9% for cyanide and 66.2%-92.7% for cyanide/gravity combined, although the sample range is much greater. The leach results also confirmed that base metals are low and that toxic elements are negligible.

Project Generation

Evaluation of a number of high-grade epithermal gold projects based on the island of Java in Indonesia was undertaken during the quarter. To date, no project has been secured as a suitable addition to the portfolio although negotiations are in progress. Project generation work will continue during the course of the year.

Land Access

Negotiations continue to gain regular access to adjacent prospects east of the main Cikoneng and Cibitung deposits where known vein mineralisation has been identified. These veins are considered to be possible future drill targets.

CORPORATE

Change of Office Address

Effective 19 December 2001 the company relocated its offices to North Sydney. The new contact details are as follows:

Equity in Cibaliung Project

In accordance with the terms of the Joint Venture Agreement the Company's interest in the Cibaliung Project increased from 70.73% to 71.23% at the end of the quarter due to sole funding of joint venture expenditure.

Cibaliung Resource Statement

The Company announced a new resource statement in June 2001 for the combined Cikoneng and Cibitung shoots with an inferred resource of 1,299,000 tonnes @ 10.42g/t Au & 60.7g/t Ag with contained metal of 435,000oz gold and 2.54 million oz silver.

EXPENDITURE

Exploration expenditure in Indonesia during the quarter amounted to A$200,350.

In accordance with Australian Stock Exchange Listing Rule 5.10, this report is based on information compiled by Mr. Drew D. Henry as Consultant Geologist for the Company. Mr. Henry has consented in writing to the inclusion of such information in this report in the form and context in which it appears. Mr. Henry is a Fellow of the Australasian Institute of Mining and Metallurgy and a Member of the Australian Institute of Geoscientists and holds the relevant qualifications as a "competent person" as defined by the Australasian Code for Reporting of Identified Mineral Resources and Ore Reserves..

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