QUARTERLY REPORT

Quarterly Report

Three months ending
30 June, 2001

Cibaliung Project - Banten, Indonesia

• 13 diamond drill holes were completed for a total of 3,544 metres. A high grade core to each of the Cibitung and Cikoneng Shoots was confirmed.
  
  Key intersections are:

  Cibitung -	AC-030:	20.25m @ 9.73g/t Au & 39g/t Ag
  Cikoneng -	AC-036:	6.15m @ 11.28g/t Au & 83g/t Ag
  Cikoneng -	AC-021A:	12.59m @ 12.28g/t Au & 66g/t Ag

  
  
• An updated Resource Statement has been completed. The overall inferred and indicated resource is:

  4,496,000 tonnes @ 3.52 g/t Au and 37.2 g/t Ag

  containing

  509,000 oz Au and 5.38 M oz Ag

  
  
• Within this overall resource, at a 3 g/t Au cut-off, two shoots - Cikoneng and Cibitung - comprise a substantially higher grade resource:

  1,299,000 tonnes at 10.42 g/t Au and 60.7 g/t Ag,

  containing

  435,000 oz Au and 2.54 M oz Ag

  This represents an increase of 40% equivalent to 123,000 oz Au since the last resource statement (November 1999).

Acquisitions

• The Company entered into a Heads of Agreement to acquire 85% of the Toka Tindung Project from Aurora Gold Ltd. The Company has been conducting due diligence and expects to make a decision on this project in the near future.

Expenditure

• Total exploration expenditure for the quarter was A$673,675.

EXPLORATION

Cibaliung Project - West Java, Indonesia

Cibitung Shoot - Diamond Core Drilling

The results of AC-030 have confirmed the presence of a high-grade core within the Cibitung Shoot.

Details are shown in plan (Figure 1) and cross section (Figure 2). Assay values from the high-grade zones intersected are shown in Table 1. Average grades have been calculated using a 3.0g/t Au cut-off with no top-cut applied to the raw assay data.

Cikoneng Shoot - Diamond Core Drilling

Five holes were drilled at Cikoneng; AC-034, AC-035, AC-036, AC-038 and AC-042.

AC-036 tested the up-plunge position of the main shoot. It intersected 21 metres of vein with two mineralised intercepts of 1.2m at 4.87 g/t Au and 6.15m at 11.28 g/t Au and confirmed the up-plunge position of the high-grade core to the shoot.

The remaining holes have defined the strike extent of the shoot to the north and south.

Details of the holes are shown on long section (Figure 3), in plan (Figure 4) and cross section (Figures 5a to 5d). Assay values from the high-grade zones intersected are shown in Table 2. Average grades have been calculated using a 3.0g/t Au cut-off with no top-cut applied to the raw assay data.

Cibaliung Re-Drilling

Five further drill holes have been re-drilled, where the reported gold grades may have been underestimated due to unrecognised loss of mineralised material in the core. One of these holes, AC-010A, failed to provide a satisfactory correlation with the original hole due to the structural complexity in the vein.

The remaining four holes confirmed that un-recorded core loss had occurred in the original holes (Table 3); in each case, the width of the vein intersection increased significantly.

Three of these holes, AC-006A, AC-021A and AC-011A demonstrated that improved core recovery through the high-grade mineralized zone results in a higher gold grade for the zone.
Recovery in one hole (AC-019A) was only 65%, preventing meaningful grade comparison.

A second batch of eleven samples was collected from eight drill holes to characterise the clay rich and quartz rich portions of the vein in terms of gold content. The results confirmed the findings of the earlier batch of samples reported last quarter. Gold is preferentially concentrated in the clay rich fraction of the core which on average returned gold assays 63% higher than gold assays in the quartz fraction.

Redrilling and character sampling of drill core shows that the gold content of clay rich zones of the veins is materially greater than the quartz rich portions. Loss of core during drilling, due mainly to grinding and washing of clay material, may therefore have resulted in preferential loss of gold. This would imply that the recorded intersection grades may be lower than the actual in-situ gold grade.

Resource Statement

An updated Resource Statement incorporating all drill hole data to the end of May, 2001 has been prepared. The resource was calculated by Micromine Consulting based on geological interpretations prepared by the Company's geologists.

Domain boundaries were wire framed and used as hard boundaries in the interpolation process to restrict the influence of high grades to the geologically defined domains in which they occurred. No assay top-cuts were applied. Gold, silver and bulk density were interpolated into blocks using inverse distance cubed methodology. In addition the top 30 metres of the Cikoneng shoot have been excluded from the resource calculations as the activities of small scale mining may have sterilised this part of the resource.

The resource statement was prepared based on:

• A geological cut-off (Table 4); bounded by the quartz vein system and associated structures but with no assay cut-off applied:

This equates to a resource of 509,000 ounces of gold and
5.38 million ounces of silver or 596,000 ounces gold equivalent.

• An assay cut-off (Table 5); bounded by a 3.0 g/t Au cut-off to define the high grade mineralised shoots within the overall vein structure:

This equates to a resource of 435,000 ounces of gold and
2.54 million ounces of silver or 476,000 ounces gold equivalent.

Gold equivalent ounces are calculated based on June 2001 metal prices of US$ 4.35 per ounce silver and US$270 per ounce gold (62Ag : 1Au).

The resource is considered to be conservative based on the studies into the effect of core loss on gold grade.

Scout Drilling

Five scout holes were drilled.

AC-037 was drilled north of Cikoneng while AC-039 was drilled mid-way between Cikoneng and Cibitung. Both intersected only narrow barren veins.

AC-041 targeted the stockwork zone to the south of Cibitung. It intersected an 8.5 metre downhole width of vein but no significant assays were returned. While unmineralised, the hole indicates that dilational conditions may occur to the south of Cibitung and gold mineralisation may repeat. A further scout hole is planned to the south of AC-041 to test this.

Two holes (AC-040 & AC-042) were drilled to test an MMI soil geochemistry anomaly parallel and to the west of the Cikoneng vein. No veining or mineralisation was encountered in AC-040. AC-042 intersected the main Cikoneng vein, but was not mineralised. These MMI anomalies remain unexplained.

Additional Exploration

MMI soil sampling has been completed for the Cibeber area, the zone to the north-east towards Cikoneng, and to the north of Cikoneng along the vein trend. Mapping and geological interpretation have defined additional vein and structural trends that may provide dilational targets. Weak MMI geochemistry is broadly coincident with these target zones.

Equity in Cibaliung Project

In accordance with the terms of the Joint Venture Agreement the Company's interest in the Cibaliung Project increased to 69.35% at the end of the quarter due to sole funding of joint venture expenditure.

ACQUISITIONS

On 21 May 2001, the Company entered into a Heads of Agreement with Aurora Gold Ltd to acquire its 85% interest in the Toka Tindung Gold Project in North Sulawesi, Indonesia.

Under the Heads of Agreement, which is subject to due diligence, the Company will pay Aurora Gold a gross royalty equating to 1.7% of gold contained in dore and a 1.7% net smelter return on any gold and copper in concentrate, capped at an aggregate of 1.5 million ounces of gold produced and sold. No other consideration is payable to Aurora Gold.

The Toka Tindung Gold Project comprises a number of epithermal deposits in the Minahasa District, of North Sulawesi, Indonesia. Aurora Gold has previously announced an in situ Mineral Resource for the immediate Toka Tindung Project area of 14 million tonnes grading 3.2 g/t Au and 8 g/t Ag. This equates to approximately 1.5 million ounces of contained gold.

The Company has been conducting due diligence and expects to make a decision on this project in the near future. For further details see the ASX announcement of 21 May 2001.

EXPENDITURE

Exploration expenditure in Indonesia during the quarter amounted to A$673,675.

John C. Carlile
Managing Director & CEO
30^th July, 2001

In accordance with Australian Stock Exchange Listing Rule 5.10, this report (excluding the Resource Statement) 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.

The Resource Statement contained in this report is based on information compiled by Mr. Dean O'Keefe the Manager of Micromine Consulting. Mr. O'Keefe has consented in writing to the inclusion of such information in this report in the form and context in which it appears. Mr. O'Keefe is a Member of the Australasian Institute of Mining and Metallurgy and holds the relevant qualifications as a "competent person" as defined by the Australasian Code for Reporting of Identified Mineral Resources and Ore Reserves.

For details contact:
Andrew J. Cooke,
Company Secretary
Austindo Resources Corporation NL

Tel: (02) 9252-0400
Fax: (02) 9241-6714
AndrewCooke@bigpond.com

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