U.S.REPORT (January 27, 1992)

With the acquisition of the Longshot Ridge deposit near Hawthorne, Nev., now complete, Kookaburra Gold (VSE) plans to concentrate on its development.

Kookaburra purchased the property from Princeton Mining (TSE) in return for 400,000 treasury shares. CoCa Mines (NASDAQ) holds a 15% net profits interest in the property which it can convert to a 30% working interest by paying its proportionate share of development expenditures to the date of exercise. The Longshot deposit is estimated to contain preliminary reserves totalling 15 million tons of oxidized mineralization grading 0.55% copper. The deposit is also reported to be underlain by a similar tonnage of copper-sulphide mineralization.

The property lies adjacent to Kookaburra’s Santa Fe South property which has preliminary reserves of about 140 million tons grading 0.35% copper. Rennie Blair, president, said the company is looking for a partner to fund work on the Santa Fe property. He noted that since the Santa Fe material is not oxidized, milling would be required.

The Longshot deposit is reported to require little or no waste stripping at startup since it lies along a ridge.

Blair said the deposit is elliptical-shaped, measuring about 1,500 ft. in length and about 700 ft. in width ranging up to 420 ft. in thickness. The overall strip ratio on the deposit is estimated at about 0.6-to-1. Kookaburra plans to fast-track the deposit into production using heap leach solvent extraction followed by electrowinning. An initial program of diamond drilling is planned to bring reserves into a proven-probable 4- to 5-year reserve.