BALFOUR COPPER-TIN-ZINC-GOLD PROJECT AVAILABLE

New Challenge Resources Pty Ltd is offering the Balfour base metal and tin-tungsten project in NW Tasmania.  

SUMMARY

         EL 4/2002, (110sq km), 100% held by New Challenge Resources Pty Ltd (Peter Legge), covers the best prospects in the Balfour area

         Balfour is one of  most mineralized copper districts in Tasmania; copper workings occur intermittently along 35km strike

         Copper, tin, zinc, lead-silver occurrences are associated with geochemical and geophysical anomalies

         Past exploration data is available & new drill targets have been established

         Cu, Zn, Pb: High quality heliborne EM-data, acquired in 2002, shows distinct bedrock conductors 500m west of the main copper mineralisation at Balfour. The area is relatively flat and free of salty-overburden. Consultant geophysicist  Jovan Silic has identified specific conductor targets that remain completely untested.

         Copper intersections made by ACI and later CRA/RIO last decades suggest a north plunging med-high grade copper shoot in a fault splay NW of the Murrays Reward copper mine. A model of Sediment Hosted Copper appears to be applicable, with conductive shales overlain by euxinic seds and evaporate all overthrust onto cupriferous Proterozoic basalts.  Geophysical targets identified may relate to sediment hosted Cu. Drilling at Peters Ridge, gave the best results as follows:-

Table 1

These results are some 100-200m west of the main Balfour copper trend and suggest a copper target warranting further drill definition.  

Open cut tin & tungsten potential remains attractive at Specimen Hill and environs.  A resource near surface and ready for mining could be established by drilliing a grid of percussion holes to 100m depth across Specimen Hill; this hard rock deposit is shedding alluvial tin that has been worked in the past.  Jaguar drilled Tatlows old workings and got a good tin intersection. This exercise would have an exceptionally favourable "reward to cost" ratio and could immediately define hardrock open-pit Sn-W resources with a low overburden strip ratio.

         A very interesting situation for zinc based on the Canadian Sullivan mine model, in conductive sulphidic shales. Jaguar Minerals drilled obvious formational conductors, and then commissioned Melbourne geophysicist Jovan Silic to reassess the high data quality airborne EM. He found that Jaguar had drilled at the wrong sites; he has defined several new targets worth drilling for massive sulphide.  It seems that Jaguar pulled out prematurely. The geophysical report by Jovan Silic is available. The selection of Jovanís targets is based on some fairly proprietary geophysical analysis. These targets warrant drilling.

         Gold stream sediment anomalies have not been followed up.

         Access to these sites is excellent; the area has low button grass vegetation and pre-existing vehicle tracks.

         Tasmanian government has declared the area suitable for mining as a "strategic prospectivity zone" and supports exploration in the area.

         Modern geological maps are available at 1:250,000 & 1:25,000

         100% equity is available to an incoming party, exploration expenditure to date is ahead of government requirements. EL renewal is due in August 2007.

         Several Tasmanian consultants are familiar with the area and I can supply their contact details.

         Details of the Balfour project, including a summary, figures and photographs are available at NCRís website- http://users.bigpond.net.au/newchall/

         entry terms are reasonable and a draft option agreement is available.

Peter Legge Director, New Challenge Resources Pty Ltd 29 Trinian St, Melbourne, Vic 3181

Tel: 03 9510 4138 Mob: 0417 418 381 plegge@bigpond.net.au