QUARTERLY REPORT

Quarterly Report

Three months ending June 2004

Cibaliung Gold Project - Indonesia

• The draft Bankable Feasibility Study was completed and submitted to the joint venture participants for review.

• Permitting and associated approvals for the project are well advanced.

• Funding options are being considered and two bank consortiums have been short listed to provide proposals for the debt financing component of the project.
  

Project Generation - Indonesia

• The Company is looking to capitalize on its "in-country" capabilities and is actively seeking new projects to add to its portfolio. This initiative is at an advanced stage and specific opportunities have been identified.

Central Victorian Goldfields - Australia

• Utilising the Company's predictive ore occurrence model called the "Corridor Stacked Reef Model" the Company has selected one of its six initial targets for drill testing. Drilling commenced on the Frederick the Great target at Sebastian, north of Bendigo at the end of the Quarter.
  

Expenditure

• Total expenditure (including Cibaliung feasibility study costs) during the quarter amounted to $1,294,000.

CIBALIUNG GOLD PROJECT - INDONESIA (82.25%)

The Company's development focus in Indonesia is the Cibaliung Gold Project which is controlled through PT. Cibaliung Sumberdaya, a joint venture company established between the Company and PT. AnTam Tbk. Cibaliung is located in Banten Province in the Pandeglang Kabupaten (Regency) near the western tip of the island of Java 150km south west of Jakarta.

In accordance with the terms of the joint venture agreement, the Company's interest in the Cibaliung Project increased to 83.75% at the end of the Quarter due to the sole funding of the joint venture exploration.


Bankable Feasibility Study (BFS)

During the quarter the draft BFS was completed and submitted to the joint venture participants for their review.


Environmental Permitting

The regional authority approved terms of reference for the environmental permitting process during the quarter and the environmental approvals process is now well advanced.


Financing

Financing options are being investigated and two bank consortiums have been short listed to provide proposals for the debt financing component of the project and they will shortly commence their detailed review of the Feasibility Study and their project due diligence.


Exploration

Exploration at Cibaliung has continued with the aim of locating new high grade ore shoots.

A geological model has been developed for the project area and key targets have been defined and grouped into:

• Targets within the proposed Mine Project Area without cover rocks: Rorah Kadal, Cikeni, West Cibitung (Central Zone), Northern Cikoneng, Cibeber, Cibengang, Rorah Kapur, and Cikamancing;

• Targets within the proposed Mine Project Area with cover rocks: North Cikoneng and South Bitung (and Mastar);

• Regional targets (outside proposed Mine Project Area): Cingenge, Cikarae, Muara Cikeni, Bukit Breksi, Ramada, South Dam, and other regional prospects.

Drilling of selected target areas was carried out during the quarter to obtain further geological information and to test the model. This first phase of scout exploration drilling amounted to 1040m has been completed with a total of 5 holes in Rorah Kadal, Cikeni, West Cibitung, and Northern Cikoneng. None of these holes intersected economic mineralisation but all have provided useful information to assist in planning the next phase of drilling to be carried out in the second half of this year.

PROJECT GENERATION - INDONESIA

The Company's initiative to acquire additional project areas in Indonesia is at an advanced stage and the Company is actively pursuing a number of specific targets.

CENTRAL VICTORIAN GOLDFIELDS - AUSTRALIA

Chewton Gold Project (100%) & Sebastian Gold Project (earning up to 80%)

The Company has an attractive and consolidated set of tenements holdings located within the Bendigo Goldfield, which is one of the world's largest gold provinces that have produced about 2% of the world's gold.

The application of the Company's exploration strategy and the newly developed Corridor Reef Stacked Model to its Chewton and Sebastian project areas has resulted in the recognition of six potential new gold systems that are now ready for diamond drill testing.

The Company has selected one of its six initial targets for drill testing. Drilling at the Frederick the Great target at Sebastian, north of Bendigo, commenced on 30th June 2004.

The hole was completed at a depth of 442m in late July. Results are not available at the date of this report.

Exploration expenditure during the quarter was $1,294,000. This comprised:

• Indonesia (Cibaliung Project): $1,200,000
• Australia (Central Victorian Goldfields): $94,000.

Ian Price
Managing Director & CEO
30 July 2004

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Rule 5.3

Appendix 5B

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.

Consolidated statement of cash flows

* Expenditure in relation to Cibaliung Joint Venture in Banten-Java and MAG in the Castlemaine district of Victoria

Payments to directors of the entity and associates of the directors
Payments to related entities of the entity and associates of the related entities

Non-cash financing and investing activities

Financing facilities available
Add notes as necessary for an understanding of the position.

Estimated cash outflows for next quarter

Reconciliation of cash

Changes in interests in mining tenements

Issued and quoted securities at end of current quarter

* These notes bear interest at an interest rate equal to the 180 day bank bill swap reference rate plus 1%. The principal amount plus any interest accrued but unpaid may be converted into ordinary shares in the capital of the company at a rate of 5.5 cents per share at any time up to and including 30 June 2005.

Compliance statement

1. This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Law or other standards acceptable to ASX (see note 4).
2. This statement does give a true and fair view of the matters disclosed.
   
   
   Sign here:.........................................................Date: 27 July 2004
   (Company secretary)
   
   
   
   Print name: Andrew J Cooke
   
   

Notes

1. The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.
   
   
2. The "Nature of interest" (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.
   
   
3. Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities.
   
   
4. The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.
   
   
5. Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.