The tenements strategically cover coincident known and partially worked mineralisation, alternate haloes, and geophysical anomalies (airborne), located at the intersection of major regional structural trends known to be associated with other mineral deposits in the district.

Metal association and trace element geochemistry are consistent with a porphyry Cu-Au signatures. Magnetic lows and radiometric highs are also indicative of intrusive sources for mineralisation at depth.

To cover this potential and other extensive areas of copper-precious metal mineralisation, the company also holds or has under application 359 sq km of Exploration Permits (EPM) surrounding the ML. Details of the project tenements are summarised in the table below.

A number of companies have previously undertaken exploration in the area, including significant drilling which yielded some encouraging intersections, but did not fully test the depth and lateral extent of the mineralised zones. Compilation of the extensive past exploration data into a relational database is well advanced, and is being used to identify follow-up exploration targets. The company has acquired the government geophysical data and has undertaken a preliminary assessment of the magnetic data and the historical drill hole information.

Location, Access and Topography
The Cardross project area is 52km by road west-northwest of Chillagoe in north Queensland. Access from Chillagoe is by the predominantly unsealed Burke Development Road and then by a graded road servicing Blackdown homestead. Property tracks provide good access throughout the project area. Chillagoe has the usual facilities and services of a small town, including accommodation, supplies, fuel, and earthworks contractors. The area is characterised by subdued topography with lightly timbered open grasslands.

Mining and Exploration History
The Cardross mineralisation was discovered in 1898 and was intermittently worked from a number of mine shafts until 1939. Total recorded production was 24,000t of ore yielding 2,000t of copper, 68kg gold and 2,700kg silver. The majority of the historical production came from the Chieftain Mine, one of the eight mines on the locally named L-line of workings. ML 20003 covers four of the known historical workings on the L-Line; namely Chieftain, Albin MacGregor, Lochinvar and Keppoch, while the other four mines occur along strike to the south of ML 20003 and are covered under Ozmin's EPMA 15449. The recorded production was largely from a zone of secondary enrichment where chalcocite, covellite, bornite and chalcopyrite yielded grades of 8-20% Cu with reported gold values of up to 31g/t Au.

Project Area Geology and Mineralisation
The Cardross project tenements are dominated by Late Ordovician to early Silurian Nundah Granodiorite with the area of ML 20003 underlain by coarse-grained dark coloured quartz-muscovite-biotite-chlorite gneiss interlayered within lighter-coloured coarse granitic gneiss, in places containing large feldspar crystals or augen and belonging to the Precambrian Dargalong Metamorphics (Figure 7). Application for EPM 15078 was made to cover the northeastern extension of the Cardross Shear beyond the northern boundary of ML 20003 while EPMA 15449 was applied for to cover the numerous known prospects and other target areas to the south and southwest of ML 20003.

Exploration Potential
Ozmin has a dual focus in their exploration approach which is to investigate the depth potential immediately below the known higher grade mineralisation represented by the historical workings along the Cardross Shear and to also investigate the deeper potential for large porphyry copper-style mineralisation.

It is clear that the known mineralisation within ML 20003 is fault controlled with a number of small shoots developed along the Cardross Shear, possibly localised in areas where cross faulting provided suitable structural sites. There appears to be a metal zonation from north to south along the Cardross shear. At the northern end, in the area of the Chieftain Mine, the mineralisation is characterised by copper with little gold while towards the south (in the Lochinvar and Keppoch areas) the gold values increased significantly.

Significant results from drilling within ML 20003 include:

• Chieftain Mine – 18.3m at 2.1% Cu from a depth of 16.8m, (including 1.5m at 10.5% Cu); in vertical percussion hole 6C-3. A number of other holes drilled in the Chieftain area by Cyprus and other explorers intersected narrower intervals of usually lower grade including:
  • 4m at 2.6% Cu, 0.21g/t Au, 42g/t Ag from a down hole depth 35m in CRR 17
  • 7m at 1.1% Cu, 0.21g/t Au, 12g/t Ag from a down hole depth of 34m in CRR 18
• Lochinvar – a core hole (DDH 6C-17D), drilled to follow up mineralisation reportedly intersected in an earlier percussion hole, intersected two narrow zones of high grade copper with significant gold values below the old workings – 0.5m at 8.0% Cu, 3.6g/t Au and 100g/t Ag from 49.5m and 1.2m at 5.9% Cu, 9.0g/t Au and 92g/t Au from 51.2m.

Past regional exploration identified two interesting prospects:

• Rocky Dome, described as a large hydrothermal alteration system with strong silicification and yielding anomalous gold, arsenic and copper results in soil sampling over a 1km by 150m area. The gold mineralisation is associated with discrete breccia and multiphase silica zones. Four RCP holes drilled to test the potential depth extensions of the mineralised structures noted at surface a best result of 1m at 4.78g/t Au and 0.13% Cu (in hole CP 4) which was drilled to test a discrete limonitic hydrothermal breccia which on surface returned a rock chip value of 2.65g/t Au.
• Cardross South located over the southwestern 1.5km strike length of the Cardross Shear. Rock chip sampling of visibly mineralised structures returned values of up to 23g/t Au and soil sampling outlined a gold-copper-arsenic anomaly over a 1km by 200m area. A single RCP hole (CP 1) intersected a best gold result of 2m at 2.33g/t Au from 70m to 72m and the shear zone was anomalous in copper and gold returning 8m of 0.2% Co and 0.26g/t Au.
  

These two prospects do not appear to have been adequately explored by previous tenement holders and consequently represent excellent targets for further exploration by Ozmin.

Exploration Undertaken by Ozmin
Ozmin's tenements strategically cover coincident known and partially worked mineralisation, alteration haloes, and geophysical anomalies (airborne), located at the intersection of major regional structural trends known to be associated with other mineral deposits in the district.

Metal association and trace and trace element geochemistry are consistent with a porphyry Cu-Au signature. Magnetic lows and radiometric highs are also indicative of intrusive sources for mineralisation at depth.

A 0.5 x 1.5km gradient array Induced Polarization (IP) survey produced a prominent, 1,400m long chargeability anomaly indicating continuity of strong sulphide mineralisation already encountered in drill holes. The anomaly remains open to the south and at depth. It increases in width and intensity where crossed by a second north-south trending IP anomaly and coincident vein system.

A 3,00m RC and diamond drilling program was commenced to test (i) the IP anomaly, (ii) relatively shallow high grade copper and gold mineralisation identified by previous drilling, and (iii) a magnetic low at depth within the ML. The three holes completed intersected massive sulphide-magnetite zones, and extensive sporadic sulphide veining. Drilling has confirmed that the IP anomaly is due to the presence of disseminated and massive sulphides.

Assays have been received for two of the holes drilled approximately 1,200m apart, one at the northern end (CA06DD01) of the anomaly, and a second (CA06DD02) near the ML southern boundary. Assays from both holes have produced impressive intersections, with the latter hole, in a previously untested location, returning a 6m intercept of 4.8% Cu, 3g/t Au and 90g/t Ag from 128-134m down hole.

Mineralisation is observed to be associated with magnetite and within a broad copper-gold target zone of the order of 80m true width. This activity is the first significant exploration at Cardross since the 1980's. The total amount of drilling completed on the ML by previous explorers in 59 generally shallow holes is 885m of diamond and 3,340m of percussion and RC. Only nine holes tested deeper than 100m below surface. The average depth of the RC and percussion holes was 61m.