GMM 100%, E80/3663,
Western Australia

The Black Hill tenement is located north east of Halls Creek. The Black Rock application covers an area of approximately 57 km2 along the Halls Creek fault zone.

The Black Rock area, or Black Hills was named by the WA Geological Survey geologist, Ilmar Gemuts, because of the occurrence of black calcite associated with these structures. Black calcite is a common associate of silver/manganese ores, common to the southwest USA silver fields, and include the Creede and Silver Cliffs districts of Colorado and the Tombstone and Hardshell districts of Arizona. The black calcite in these areas commonly assays between 10 and 1500 ounces to the tonne.

Pegmont Mines Limited (“Pegmont”) undertook limited sampling during a brief helicopter visit to its Kimberley tenements in 2006 in order to confirm the presence of silver bearing black calcite. The samples returned 138 g/t of silver (4 ½ oz) and highly anomalous lead (0.44%). Minor copper which assayed 2.05% was also located in close vicinity to the black calcite whilst an ultramafic located at the bottom of the tenement assayed up to 400ppm nickel.