QUARTERLY REPORT

Quarterly Report

Three months ending September 2004

Cibaliung Gold Project - Indonesia

• The Bankable Feasibility Study (BFS") was accepted by the joint venture participants.
  
  
• Key findings of the BFS are:
  • Mine Life of 6 years;
  • Capital Expenditure of some US$34 m
  • Production Rate of 220,000 tpa
  • Mineable Reserves and Resources of 467,000 equivalent ounces of gold;
  • Annual production of approximately 70,000 ozs gold equivalent.

• Subject to financing and regulatory approvals, construction could start in the first half of 2005 with first gold production in 2006.

Project Generation - Indonesia

• The Company had made application for a new exploration area in Java and this is currently being processed by the regulatory authorities.
  
  

Central Victorian Goldfields - Australia

• Drilling of the Frederick the Great target at Sebastian, north of Bendigo confirmed the presence of a deeper repeat structure.

• Plans to float Alexander Resources Limited are well advanced. Austindo shareholders will receive a priority entitlement.
  
  

Corporate

• $3.0 million placement to fund pre-implementation for development of Cibaliung Gold Project approved by shareholders and completed.

Expenditure

• Total project expenditure (including Cibaliung feasibility pre-development costs) during the quarter amounted to $700,000.

CIBALIUNG GOLD PROJECT - INDONESIA (83.75%)

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 ("Antam"). 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 at the beginning of the Quarter was 83.75%.

Antam has elected to participate in funding of budgeted joint venture expenditure for the second half of 2004. Antam's exploration unit, Geomin, have provided drilling crews and geologists to carry out the second half exploration program at Cibaliung.

Pre-engineering work for the construction of the project commenced including finalisation of site layout, site specific geotechnical testing, equipment selection and the development of contracts for major site construction. Subject to financing and regulatory approvals being completed, construction could start in the first half of 2005 with first gold production in early 2006.

Environmental Permitting

The environmental approvals process is now well advanced. Terms of reference for the environmental permitting process were approved by the regional authority during the previous quarter.

Financing

Consideration of debt and equity financing options for the project were undertaken during the quarter.

Technical due diligence is presently being undertaken by the two short listed banking consortiums investigating the provision of the debt financing component of the project. It is expected that one banking syndicate will be mandated during the December quarter. Prime Corporate Finance Pty Limited have been retained to manage the financing process.

Exploration

Exploration at Cibaliung was undertaken by Antam's Geomin division during the quarter with the aim of locating new high grade ore shoots.

Field exploration, mapping, geophysics and approximately 1,500 metres of diamond drilling commenced as part of the second phase of scout drilling to test targets at Cibeber, Ramada, West Cibitung, South Cibitung, Middle Ridge and Cibengang.

One shallow hole (AC 86) was completed at Cibeber and confirmed the presence of a favourable structure and associated vein. Although narrow, both intersections were mineralised with the latter intersection containing significant values of 25.8 g/t Au and 223 g/t Ag over a true width of about 0.4m.

A second hole was commenced at Cibeber to test the same structure further along strike. Results from this hole are not available at present but will be reported when available.

PROJECT GENERATION - INDONESIA

The Company had made application for a new exploration area in Java and this is currently being processed by the regulatory authorities.

Further opportunities continue to be investigated in Indonesia to further the Company's strategy of building on its established strengths of operating in Indonesia and to strengthen its Indonesia focus.

CENTRAL VICTORIAN GOLDFIELDS - AUSTRALIA

The Company's exploration in Australia is controlled through Alexander Resources Limited ("Alexander"). Alexander has an attractive and consolidated set of tenement 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 Directors of Austindo Resources Corporation NL have decided to raise $0.5 million of private equity in Alexander and that the public will be offered shares in Alexander through an IPO and listing will be sought on the Australian Stock Exchange. Austindo shareholders will receive a priority entitlement in the IPO.

Diamond drill hole FTG-01 was drilled beneath the historic Frederick the Great Mine located 18 kilometres north of Bendigo within Exploration Licence 3105. The hole confirmed the presence of a deeper repeat structure and a broad weakly mineralised zone of 60 metres (380-440 m) was intersected within a sandstone dominated sequence in the eastern limb of the anticline. The results were consistent with the expectations of Alexander's predictive exploration model.

Exploration expenditure during the quarter was $700,000. This comprised:

• Indonesia (Cibaliung Project): $550,000
• Indonesia (New Project Generation): $10,000
• Australia (Central Victorian Goldfields): $140,000.

Download 30 September, 2004 Quarterly Report (196K)

In order to read this file it is necessary to have the Adobe Acrobat Reader installed on your computer. To download it click on the "Get Acrobat Reader" icon below.

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

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
Description includes rate of interest and any redemption or conversion rights together with prices and dates.

* 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: 29 October 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.