ASX Announcements: February 27, 2004

Republic Gold adds significant prospect to portfolio

27 FEBRUARY 2004

The Manager
Companies Announcement Platform
Australian Stock Exchange Limited


The Directors of Republic Gold Limited (RAU) today advise that two relinquished mining leases in the Tregoora area of the Hodgkinson Basin, containing a significant area of mineralisation, will now form part of Republicís EPM 13937 application.

Open file reports and references by the Geological Survey of Queensland indicate that in 1989 BHP Gold Limited calculated what was at that time termed an ďinferredĒ resource at Black Knight of 800,000 tonnes at 2.8 g/t Au, or 72,000 ounces following an extensive drilling programme. Under the current JORC terms this resource may be considered non-compliant and hence the deposit will be geologically modelled by Republic as a matter of priority so that a JORC compliant resource can be calculated and reported and further drilling can be planned.

The two mining leases Ė relinquished by another party - were MLís 5209 and 4816. ML 5209, which covers the Black Knight deposit, is a prospect that is contained in the larger gold anomalous Sleeping Giant zone.

The Black Knight prospect fits Republicís targeted mineralisation style and is of sufficient magnitude, that it becomes an immediate drilling target for the Company. Once EPM 13937 is granted, drilling will further investigate this mineralisation, along with the existing Atric, Northcote and Pinnacles Creek prospects.

Tregoora was referred to in Republicís recent IPO prospectus as one of the few areas not held by the Company in the central Hodgkinson Basin, which held a significant estimate of contained gold, albeit not in a form which complied with JORC, due in part to the period some time ago when the resource was calculated.

The open file reports show an extensive drilling grid that complies with the outline of ML 5209. This prospect occurs on the regionally significant Retina Shear that runs for the entire northwest-southeast dimension of EPM 13937.

The remaining mining leases that lie between MLís 5209 and 4791, covering only 39 hectares, contain a CIP treatment plant and a number of oxide open pits from the recently completed mining operation at Tregoora.

Metallurgical testwork results from the Sleeping Giant prospect reported in the Companyís IPO prospectus indicate that the mineralisation is highly refractory, which is the target mineralisation sought by the Company. Two samples were tested by BHP Gold Limited in 1989 and returned direct cyanidation leach results of 25% and 0% gold recovery. This testwork indicated that the flotation response was good, with weight recoveries being low and concentrate grades being high, even though this testwork was not optimised.

There are some excellent indications of sulphide mineralisation in holes drilled by BHP Gold Limited and others that are available in open file reports. The intersections in sulphides generally appear to be of higher grade than those in oxide mineralisation, although the precise depth of the base of oxidation is yet to be confirmed. The table below shows a number of the better BHP Gold Limited drillholes assumed at this stage to be in sulphide mineralisation.

Drilling Intersections at Black Knight

Hole Number Mineralised Interval Intersection
SG38 81 - 89 metres 8 metres at 5.68 g/t Au
SG38 132 - 144 metres 12 metres at 1.70 g/t Au
SG46 44 - 62 metres 18 metres at 3.33 g/t Au
SG52 55 - 61 metres 6 metres at 3.21 g/t Au
SG56 56 - 68 metres 12 metres at 5.16 g/t Au
SG60 60 - 76 metres 16 metres at 3.26 g/t Au
SG60 68 - 71 metres 3 metres at 9.62 g/t Au
SG82 54 - 68 metres 14 metres at 4.07 g/t Au
SG82 54 - 58 metres 4 metres at 9.49 g/t Au
SG82 55 - 56 metres 1 metre at 16.96 g/t Au
SG83 64 - 80 metres 16 metres at 1.57 g/t Au
SG95 64 - 71 metres 7 metres at 4.07 g/t Au
SG113 44 - 54 metres 10 metres at 4.26 g/t Au

The Black Knight prospect is one of a number of prospects identified by previous explorers in the Tregoora area, which is only some 20 kilometres from Republicís Atric deposit. Other prospects held by the Company in close proximity to Black Knight and within EPM 13937 are the Pillidge, Midway, Honey, Rainbird, South Mitchell, Quartz Wall, These prospects all lie within 4 kilometres of the former ML 5209, making this an intensively mineralised region. This area has been explored by Hawk Investments, Strategic Metals, BHP Gold Limited and more recently Centamin Egypt Limited.

As reported by the Independent Geologistís Report in the Companyís IPO prospectus, best intersections found at that stage in the literature at Pillidge, Honey and Midway were 12 metres at 1.32 g/t Au from 10 metres down hole in hole P6 at the Pillidge prospect, 2 metres at 2.19 g/t Au and 2 metres at 1.64 g/t Au in holes H1 & H6 at the Honey prospect and 2 metres at 1.36 g/t Au, 4 metres at 4.29 g/t Au and 4 metres at 4.58 g/t Au in holes M2, M20 and M21 at the Midway prospect.

Centaminís work in the greater Tregoora area in the early 1990ís produced best intersections of 8 metres at 1.13 g/t Au, 8 metres at 3.04 g/t Au (the last 1 metre intersection was 2.16 g/t Au), 6 metres at 1.33 g/t Au (the last 1 metre intersection was 1.71 g/t Au), 5 metres at 2.50 g/t Au, 10 metres at 2.61 g/t Au, 4 metres at 4.58 g/t Au, 10 metres at 2.30 g/t Au, 8 metres at 3.13 g/t Au, 12 metres at 2.79 g/t Au and 18 metres at 2.09 g/t Au.

The addition of the area covered by the former MLís 5209 and 4817 will significantly enhance the prospects of Republicís drilling programme, which is due to commence in April this year.

Yours faithfully

John Kelly
Managing Director
Republic Gold Limited

Note: The information in this report that relates to drilling intercepts, mineral resources and ore reserves is based on information collated by John Peter Kelly, a member of the Australasian Institute of Mining and Metallurgy who has a minimum of five years experience in the estimation, assessment and evaluation of mineral resources and ore reserves. John Peter Kelly has significant experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 1999 edition of the ďAustralasian Code for Reporting of Mineral Resources and Ore ReservesĒ.

For more information, please contact: Greg Barns on 0419 691 846 or John Kelly on 0418 577 759.

Republic Gold Limited - ACN 106 399 311
Level 7, 114 William Street, Melbourne, Victoria 3000 Phone: 03 5439 4646
E-mail: [email protected]

For more information, please contact: Greg Barns ([email protected]) on 0419 691 846 or John Kelly ([email protected]) on 0418 577579.