Regional Setting
The 100 km long Molong Volcanic Belt is a major element of the Lachlan Fold Belt. The 400-450 million year old volcanics, limestones, associated sediments and granitoid intrusions of the Blayney-Orange District are handsomely endowed with gold and copper-gold deposits of diverse style and geological setting.

The Lachlan River Transverse Zone is a west-northwest crustal dislocation which appears to have provided a conduit for igneous intrusions and mineralizing fluids throughout much of the region’s geological history, and it encloses many of the better mineral deposits. It also encloses the much
younger Mt Canobolas volcanic centre and its surrounding volcanic mantle. This thin sheet of volcanic debris today conceals the prospective rocks of the Molong Volcanic belt in the area of EL 6040.

Some of the gold deposits in this suite of rocks and within 20 km of the Australasia Gold tenement
include:

• Cadia Ridgeway - Resources and Production = + 20 million ounces of gold. Porphyry gold-copper deposits
• Browns Creek - Resources and Production = + 1 million ounces of gold. Skarn-hosted disseminated copper-gold deposit
• Lucknow - Production = + 400,000 ounces of gold. High grade gold in quartz-base metal sulphide veins
• Forest Reefs - Production = +100,000 ounces of gold.

The exposure of three of these deposits at the margins of the blanketing volcanics, gives encouragement that additional mineralisation may be concealed by the remaining basalt.

Lucknow Project
EL 6040 (82 sq km) covers rocks of the Forest Reefs Volcanics and associated sediments and intrusives in the area between the city of Orange and Cadia-Ridgeway and Browns Creek gold deposits. The EL is mostly covered by the Tertiary basalt blanket described above, which has inhibited exploration of the underlying Ordovician basement rocks.

Drilling within and to the west of the EL 6040 has indicated the thickness of volcanic material over much of its area is likely to be less than 50 metres. Windows of older volcanic-suite rocks exposed within the basalt area confirm a general thinning of the volcanic blanket to the south and east across the EL.

Magnetic surveys of the tenement area confirms the continuation beneath the basalt, of geology similar to that of the mineralized areas outside the area of basalt cover and consequently, prospectivity for deposits of similar styles as described above.

(The depleted Lucknow Mine is held by a third party under Mining Lease Application (MLA 197 0.6 sq. km) .)

Previous exploration of the basalt-covered area has been limited. Surface geochemical surveys have successfully identified geochemically anomalous levels of gold, arsenic, copper, and lead in both the western and central parts of the tenement. Significant geochemical anomalies are also reported to extend across the western boundary of EL 6040 from the adjacent exploration licence.

Mineralised Prospects and Potential
The Summer Hill anomaly just north of EL 6040 contains weakly mineralized, altered intrusives potentially associated with a concealed porphyry system. The Huntley Prospect in the central area was drilled in 1995. Its source was narrow gold-copper vein mineralisation generally of the Lucknow style.

These discoveries confirm that the Ordovician rock suite is prospective beneath the basalt veneer.

Program for the Lachlan Project
The blanket of volcanic cover, combined with the major discovery potential and the diversity of target deposit style and setting of the project area requires that the exploration net is widely cast.

During the first year it is the Company’s intention to conduct drill-reconnaissance of targets which can be identified from the existing magnetic data and geochemical database.