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ASX Announcements: February 13, 2004

RGL Progress since Listing


13 FEBRUARY 2004

Companies Announcement Platform
Australian Stock Exchange Limited
By Fax: 1900 999 279


The Directors of Republic Gold Limited (RAU) are pleased to advise of the progress the Company has made since it listed on the ASX on 16 January 2004.

Republic has now opened an operations office in Mareeba, Far North Queensland and has commenced fieldwork on its Hodgkinson Basin properties in spite of difficult climatic conditions caused by the Wet Season.

The Company’s main focus of activity at present is the assessment of several drilling targets where resources exist. The Company believes that the potential to upgrade these resources is excellent.

The Company has approached a number of drilling contractors in the region. Two of these contractors have drill rigs available to suit the Company’s programme and timing.

Drilling is planned to commence as soon as weather conditions improve, which is anticipated to be in early April. To assist in the planning and execution of this drilling programme a review of existing resources based on past information and records has commenced, with the Company using an external consultant to assist in this task.

In addition, the Company has begun an assessment of the extensive work carried out over the past 20 years in the Hodgkinson Basin by a number of companies. Previous explorers’ work has been carried out on relatively small, piecemeal holdings compared to Republic’s large tenement position. This will allow the numerous deposits and other exploration results to be considered in totality. This assessment will enhance the extensive BHP Billiton database that the Company has access to via its joint venture with BHP Billiton and has already highlighted a new prospect located within one of the Company’s tenement applications. The resources review, along with a complete regional appraisal of previous exploration results, will provide Republic with a thorough understanding of the area as a springboard to direct new exploration.

A physical review of many prospective areas over the past two weeks has shown that exploration access tracks established in the past 20 years will be easily and cheaply re-established.

In addition to these activities the following developments have occurred since listing:

• Director, Mr Chris Roberts, is now able to work for the Company in an executive role and hence will be able to provide critical geological guidance during the early phases of exploration. Chris has an excellent understanding and intimate knowledge of the Fosterville model that Republic is applying to the Hodgkinson Basin, which will be pivotal to the success of Republic’s development plans,

• Mr Neil Mockett, an experienced senior exploration geologist who has previously worked in the Hodgkinson Basin and Central Victoria, has joined Republic;

• Republic Directors have completed a visit to the Hodgkinson Basin, inspecting the main areas of initial focus;

• Republic is currently focussing on three areas in the Hodgkinson Basin – Northcote and Atric that both have defined resources and Pinnacles Creek that has previously been drilled and has produced very encouraging results;

• The Company has held very successful meetings with the Mareeba Shire Council Mayor and CEO and the Mareeba Chamber of Commerce to facilitate operations in the area;

• Republic has met with or contacted a number of property owners on which the Company has tenements in the Hodgkinson Basin;

• Republic is reviewing other leases in the Hodgkinson Basin, which are not part of the Company’s portfolio;

• Republic is using consulting structural geologist, Dr Steve King, to initially produce a structural interpretation of the Hodgkinson Basin. Dr King has been instrumental in helping to develop the structural geological model at Fosterville.

• EPM 13936, that covers the ground to the south and north-west of the Atric deposit, has been granted after no native title claims were lodged. Transfers have been lodged with the Queensland Mines Department for a number of tenements, with settlement for EPM’s 9869 and 13848 to be completed in a few days; and

• A site visit to the NSW Lucky Draw deposit is planned within the next fortnight to set up the programme of work for this area. The Lucky Draw tenement has been transferred to the Company by the NSW Mines Department and the transaction settled with Marlborough Resources.

Republic listed on the ASX on 16 January 2004 after closing its IPO oversubscribed by raising $5.8M.

Republic's directors are Mr. Tom Linardos, Non-Executive Chairman, Mr. John Kelly, Managing Director, Mr. Chris Roberts, Exploration Director and Mr. Greg Barns, Non-Executive Director.

Republic is concentrating its efforts in the Hodgkinson Basin in Far North Queensland. Republic intends to apply the highly successful geological model recently developed at the Fosterville Gold Mine in Central Victoria to its tenements in the Hodgkinson Basin. This geological model now sees Fosterville with a total gold endowment of more than 2,500,000 ounces of gold. The technical directors of Republic have more than 20 years of combined experience with Fosterville. Republic can see close similarities between the geology of Fosterville and that of a number of its projects in the Hodgkinson Basin. These projects are:-

• A joint venture with BHP Billiton on 9 EPM’s covering 1,730 square kilometres.

• A joint venture with Mr Neil Stuart on the 61,000 ounce Atric deposit. Republic believes the geology of Atric and Fosterville are very similar.

• A series of EPM’s in the immediate vicinity of Atric covering over 1,000 square kilometres, and

• A deal with Jackson Gold and International Goldfields on the 147,600 ounce Northcote project, where Republic has rights to 75% of this project. Republic believes the geology of Northcote is also very similar to that of Fosterville.

In total, Republic has 3,246 square kilometres of ground in the Hodgkinson Basin. This is the first time any company with such technical experience will attempt to apply a well developed orogenic gold model to the Hodgkinson Basin and follows in the footsteps of BHP Billiton which pegged its ground on the basis of a similar model.

Republic has acquired Marlborough Resources 75 percent interest in its prospective Burraga/Lucky Draw tenement, located in the Lachlan Fold Belt, south of Bathurst in NSW. Republic sees the Burraga/Lucky Draw tenement as fitting its strategy because of its early gold production potential from the existing resource of 107,000 ounces. With this resource and improved infrastructure now available in the Hodgkinson Basin, Republic believes that it is well placed to become a significant gold producer in 5 years.

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

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