Windera Project

The Windera Project (E6161) 66% CRC is located 50km NE of Cobar in the Cobar Goldfield and positioned approximately 40km north of the historic Mt Boppy gold mine (450,000oz) which hosts structurally controlled vein and stratabound disseminated mineralisation.

The holding is subject to a Joint Venture agreement with Exco Resources Ltd where Cortona manage and fund all exploration activities.

Mineralization in the Cobar mineral field is found within high-strain zones such as shears and thrust faults. Dilational zones opened during strain to localize the mineralization into multiple, narrow quartz lenses. Devonian aged deposits, such as Cobar-style base metal and Mt. Boppy Au-Pb Canbelego style deposits, together with Ordovician aged deposits, such as Tritton style base metal and copper mineralisation are considered as possible exploration targets in this particular geological setting.

Known mineralization within the Windera project area occurs as complex vein sets and stockworks containing abundant ex-sulphide boxwork. The veins identified at Pennington Tank, Mulga Prospect and Hidden Treasure occurring in chlorite and sericite altered phyllites is restricted to minor historical old workings. The largest mineralized zone with an apparent surface width of about 2m and is found in the largest working around Pennington’s Tank “a Mt Boppy style target”, which returned rock chip results peaking at 10g/t Au. Minor base metal sulphides and chlorite-sericite-pyrite alteration are associated with the veining.

Exploration by Moly Mines Ltd (the former tenement owner) targeted a previously BHP (1998-99) coherent 3,000m long x 800m wide gold-arsenic-antimony-tungsten anomaly, termed anomaly L, along with a similar sized second anomaly named anomaly L south, positioned 1km further south which was identified in follow up work by Exco (2000-01).

The north-south aligned soil anomaly occupies a stratigraphic and structurally complex area near the Gilmore Suture. The gold-in-soil anomaly peaked at 45ppb. Two drilling programmes followed for an advance of 438m and 1,864m returning best intersections of 2m @ 0.8g/t Au in EWRC22 in phase 1 and 6m @ 0.5g/t Au and 2m @ 1.2g/t Au in phase 2. The intersections are associated with quartz veining in extremely weathered rocks.

Drilling to date has failed to systematically test the identified anomalies with wide spaced drill lines between 250m and 800m apart that have only thus far tested the typically depleted saprolite zone.

The multi-element nature of the geochemical anomaly is considered to be significant because the Mt Boppy deposit further south presents a similar geochemical signature. The latest RC drilling of the anomaly by Moly Mines in 2004, limited to seven holes, indicates that gold mineralization was related to surface enrichment in the oxidized horizon of the bedrock. The best intercept returned 6m @ 0.35g/t Au along with significant quartz veining and pyrite mineralisation that returned very low grade gold and base metal mineralisation.

Exploration is at an early immature stage and work to date has only defined multi-element gold in soil anomalies and confirmed low grade gold mineralisation in the bedrock beneath the anomalies.

The Windera project has the potential to contain a significant gold deposit considering the dimensions of the multi element geochemical signature of the identified anomalies. The location, close to the Gilmore suture and position within the Cobar district along with the presence of other gold anomalous areas within an under explored tenement are all positive indications.

Cortona plan to farm out its interest in the property or withdraw from the Joint Venture.