AVOCA RESOURCES LTD The Rigs are Rattling in

AVOCA RESOURCES LTD “The Rigs are Rattling in South Australia” Sydney Mining Club 4 March 2004

Presentation Outline. • Who is Avoca? • What got Avoca started in SA? • How do you cut back over 16, 000 km 2 to meaningful drill targets? • What has Avoca achieved in SA, and where to in 2004? • Summary

Avoca is an aggressive junior explorer…. Diamond Drilling RC Drilling Aircore Drilling RAB Drilling Auger Drilling Soil Sampling Gravity Surveys Surface EM Surveys 1, 397 metres 6, 064 metres 14, 205 metres 24, 143 metres 5, 815 holes 6, 444 samples 4, 583 stations 98 line km …. . all since listing in April 2002.

. . with a quality portfolio in two of Australia’s highest endowed provinces… • Over 10, 000 km 2 in Australia’s richest copper belt , being the Olympic Copper-Gold Province in SA, and • Almost 8, 000 km 2 in the Eastern Goldfields of WA…. mostly in free-carried JVs with Gold Fields, Placer Dome, Harmony, Teck Cominco, Sons of Gwalia and Mines & Resources.

Avoca corporate overview. • ASX Code AVO • Issued Securities 64 m shares (58 m quoted) 9. 8 m unlisted options • Market Capitalisation $10 m • Major Shareholders - Gold Fields (11%) - Kurana (7%) (Top 20 own 44%) • Staffing ($3 m in cash) MD, EM, SG, TGM, Ac(pt)

Presentation Outline. • Who is Avoca? • What got Avoca started in SA? • How do you cut back over 16, 000 km 2 to meaningful drill targets? • What has Avoca achieved in SA? • Where to next for Avoca’s SA quest? • Summary

Recognising an opportunity and moving very fast…. . Prominent Hill: 100 m @ 2% Cu announced

. . to secure the major position in Australia’s richest copper belt. • Within 24 hours of the Prominent Hill announcement, Avoca became the dominant leaseholder with 16, 000 km 2 in what later became known as Olympic Copper. Gold Province. • Applications by fax and a credit card bill of ~$15 K…. .

Presentation Outline. • Who is Avoca? • What got Avoca started in SA? • How do you cut back over 16, 000 km 2 to meaningful drill targets? • What has Avoca achieved in SA and where to in 2004? • Summary

…. smart geochemistry and geophysics. Northern segment of holding was principally geochemistry driven. -utilising innovative geochemical techniques able to “see” through the rocks which bury mineralisation.

…. smart geochemistry and geophysics. Southern segment of holding was geophysically driven. • combination of magnetic and gravity surveys collected both by government agencies and Avoca.

An example of innovative geochemistry. Gravity (regional only) Magnetics • 1979 drill hole intersected 14 m @ 0. 5% Cu at 280 m depth. • Avoca collected “partial leach geochemistry” over drill hole to see if technique can “see through cover rocks. ”

Geochemistry over drill hole containing buried mineralisation shows strong surface anomaly Drill hole location

. . Avoca then completed extensive geochemical coverage to test Nth block. In excess of 11, 000 km 2 surveyed. One sample collected every 4 km. u u. Four areas showed coherent and strongly anomalous copper-gold. REE anomalism on surface at: Myall Hill, Shore Hill, Pernatty and Reordan. u. Provides for ground rationalisation strategy.

. . . over ground like this, sometimes!

The application of geophysics in the search for Cu-Au. • Magnetics proves very useful for identifying major faults that control location of zones of rock that may host mineralisation. - eg Pine Point Fault and Port Julia prospect on the Yorke Peninsula Parara Mine Hillside Mine Port Julia target

The application of geophysics in the search for copper-gold. - Both the Ernest Henry deposit and Avoca’s Glensea Prospect (east coast of Eyre Peninsula) show similar geophysical features: large magnetic complex against non-magnetic granite.

Presentation Outline. • Who is Avoca? • What got Avoca started in SA? • How do you cut back over 16, 000 km 2 to meaningful drill targets? • What has Avoca achieved in SA and where to in 2004? • Summary

Olympic Dam style breccia at Port Julia • First Avoca drill hole into 6 km long gravity anomaly intersects Olympic Damstyle breccia. *First occurrence on Yorke P. • Second hole commenced yesterday, 2. 5 km from first hole. PJD 1

PJD 1 176. 2 m: Chalcopyrite in haematitic breccia

Drilling PJD 1 at Port Julia, June 2003

New work at Port Julia involves 3 D imagery of Avoca’s gravity data… MOORE GEOPHYSICS

. . and calculating what type of dense body may give rise to the Port Julia gravity anomaly… MOORE GEOPHYSICS

Here higher density “cores” to the source body are seen as green, and are targets for current drill testing PJD 1 drilled in nonoptimum location. PJD 2 1 km MOORE GEOPHYSICS

Is Glensea another Moonta-style field? Glensea • Avoca drills the only 3 holes into 80 km 2 magnetic anomaly. • Discovers high grade copper-gold veins in 3 holes over 6 km 2. • Large TEM program to identify large massive sulphide position completed. • Drilling to recommence in March Qtr 2004.

Glensea discovery – another Moonta field? Avoca’s 3 holes are the only holes ever drilled into the magnetic anomaly

COD 1, 115. 47 m Massive chalcopyrite with quartz. 0. 9 m @ 3. 25% Cu, 0. 24 g/t Au, 2. 4 g/t Ag

Drilling COD 1 at Glensea, April-May 2003

Wandearah is a very large and highly dense body. . Wandearah • Drill targets defined by two discrete 5 km 2 gravity anomalies. North target coincident with highly anomalous geochemistry. • Targets not previously drilled. • Avoca to drill in March 2004.

. . with two discrete gravity anomalies (drill targets). • Two discrete anomalies off main anomaly axis – defined by 1800 station gravity survey completed by Avoca. • Very large target sizes (5 km 2)

New work at Wandearah shows 3 D image of Avoca’s gravity data. NEW OLD MOORE GEOPHYSICS

Dense body at depth calculated as being responsible for gravity anomaly. Note this feature MOORE GEOPHYSICS

Discrete gravity anomaly

Geochemistry overlying gravity. Copper anomaly (20 x background)

Geochemistry overlying gravity. REE anomaly (50 x background)

Geochemistry overlying gravity. DRILL TEST – March 2004 Uranium anomaly (50 x background)

Summary • Avoca is an aggressive and fast moving junior explorer that acquired the major holding of Australia’s richest copper belt following MNR announcement. • Avoca’s initial holding of in excess of 16, 000 km 2 was reduced using results from a combination of innovative geochemistry and geophysical techniques. • Avoca has discovered a new high grade copper-gold Moonta style field at Glensea.

Summary cont’d. • Avoca’s first drill hole into Port Julia intersected Olympic Dam style haematite breccias. First observation on YP. • Wandearah exhibits excellent geochemical and geophysical properties consistent with buried mineralisation. • All 3 copper-gold targets to be drill tested over next 2 -3 months.

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