INTERVIEW WITH PHILIP BRUCE, MANAGING DIRECTOR OF HILL END GOLD LIMITED (HEG)

“Hill End And Hargraves Project Update”

http://www.brr.com.au/event/50853

TUESDAY, SEPTEMBER 9, 2008, 11:00 AM.

            BRR    Good morning and welcome to Boardroom Radio. Today, we’re speaking with Mr. Philip Bruce, Managing Director of Hill End Gold Limited. Thanks for

10                    joining us today, Philip.

            HEG    Yes. Hi Eddie, thanks very much.

            BRR    Philip, the Hill End Project has been delivering some excellent results from the underground drilling and trenching, what are some of the highlights of the

15                    results been and what is the progress of this project?

            HEG    Eddie, it’s going very well. The aim of the exercise here is to demonstrate the continuity of the high-grade zones and we’ve got in some of these areas that we’ve opened up. The first one that we’ve opened up is the M2 and what we’ve found in there was that the high-grade zones are far more continuous

20                    from what we thought. The strike length itself, the order, is about 100 metres and the work that we’ve done has indicated that within that there are some very high-grade zones.

                        Yesterday, we put out a note that referred to the trench results and some of

25                    those were running at 10 ounces a tonne of good 10 metres of run within the high-grade zone, and that’s a sort of continuity that we’d anticipated in the Hill End system. It’s quite coarse gold but its very well distributed coarse gold, and there’s a continuity to it that we can use to reliably estimate the grade and tonnage of material we’re mining.

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                        What we’ve found as well is that in doing this work that the mining has shown that the mineralisation not only being continuous is higher and what we’d expected from the surface drilling, and both the tonnage and the grade is higher, and in the results we’ve put out we also noted that there were some

35                    extensions from the resource blocks that we’d estimated in the previous resource work we did from surface joined both to the south and beneath the existing resource block. So basically the underground work has demonstrated that we’ve got high-grade continuity, we can mine the material. The zones that we’ve been mining are of a higher grade in tonnage than what we’d

40                    anticipated, and the underground drilling has indicated that the zones actually extend far beyond what we’ve currently estimated.

            BRR    Philip, you’ve also had an announcement out showing some good exploration results from the Hargraves project, what have the findings been?

45        HEG    Look, Hargraves, it’s slightly different to Hill End. The mineralisation is similar but the geology is a little bit different. What we’re targeting there straight up is more of a bulk mining type approach and what we’ve found is that the mineralisation there is very strong within a zone which is about 1,000 metres long, and so far we’ve gotten to about 400 metres depth. The sort of results we’re getting back from there are extensive zones of continuous mineralisation that are indicating that the deposit is going to be economically viable given that the results we’ve had are continuous over the strike length than what we’ve already identified as being strongly mineralised. The drilling

5                      program that we’ve got there is still in early days, put down about 19 holes in the northern part of the system, and there are about 7 holes that are still outstanding, our assays are still being awaited from the lab but as the results come through we’re getting confirmation that the system does indeed look like it’s going to be potentially mineable from a bulk mining point of view.

10                    Some of the intersections we’ve had, the recent one that we announced last week in HGD13 was 4.2 grams over a down hole interval of 75 metres, between about 36 metres and 75 metres would be the actual width or depth.

                        We’ve used 36 metres as being the true width but depending on exactly

15                    where the drill hole has intersected the system as to what the total width might be. For example, with the hole we announced yesterday, the HGD14 which is about 120, 130 metres south of HGD13, the mineralisation that we see there is about 150 metres thick and that grade is just over a gram. But within that, there are a couple of strong zones of mineralisation that cause it

20                    to 2 grams average and the mineralisation as we’ve seen with the Hill End type of mineralisation and the high grade’s been fairly coarse gold, we expect that these numbers are quite conservative.

                        So the results are very good and what we’re looking at there is a mineralised

25                    system that we believe will be a bulk mining type of situation where the mineralisation at this stage, just in that one deposit, looks like it is open at 400 metres depth and this stage looks like it’s got to the order of about 1,000 metres strike length. The system that we’d be mining there is about 30 metres wide and just the mineralisation within that we’re looking at putting out an

30                    exploration potential figuring the next wall just to give the macro sense of what we think is that.

            BRR    Philip, certainly some encouraging news coming out of Hill End Gold. We thank you for your time today and look forward to speaking to you soon.

35        HEG    Excellent. Thanks, Eddie for all of this, bye-bye.

            BRR    That was Mr. Philip Bruce, Managing Director of Hill End Gold Limited. If you have any questions about this broadcast or any other broadcast, please feel free to contact us on brr@brr.com.au. I’m Eddie (Inaudible) (0:05:52) and

40                    thank you for listening to Boardroom Radio.

INTERVIEW CONCLUDED

Contact brr@brr.com.au for more information

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