INTERVIEW WITH TOM SANDERS, MANAGING DIRECTOR OF NAVIGATOR RESOURCES LIMITED (NAV)

“Leonora Gold Project Update”

http://www.brr.com.au/event/51593

THURSDAY, SEPTEMBER 18, 2008, 11:00 AM.

            BRR    Good morning and welcome to Boardroom Radio. Today, we’re speaking with Mr. Thomas Sanders, Managing Director of Navigator Resources Limited.

10                    Thanks for joining us today, Tom.

            NAV     Thank you, Eddie.

            BRR    Tom, Navigator Resources has been focusing on the Cardinia area of its Leonora gold project recently. We’ve seen you’ve released some results

15                    today in regards to this project, what are some of the highlights been?

            NAV     The Cardinia area in question is in the southern portion of our 35-kilometre long Mertondale-Cardinia belt. It’s been our main focus for the last six months. Yesterday, we announced the results of our first metallurgical test work from Cardinia, and that’s returned excellent cyanide leach recoveries of

20                    up to 97% within 48 hours and acceptable lime and cyanide consumption levels. Importantly, we are getting good recoveries from both coarse and fine material prior to grinding, and this means that it’s likely that we can treat the ore at Cardinia without the need for conventional front-end crushing and milling circuit due to the softness of the material. This would minimize

25                    potential equipment delivery difficulties associated with the project start-up, and this will have a big impact on the start-up capital requirement and the operating costs, especially power which is becoming more and more important these days. As a result, we’ve commenced discussions with a number of process plant design and supply engineers to identify the best low

30                    Capex and Opex process route while we confirm the metallurgical consistency throughout the 2 kilometres of the Cardinia gold system.

            BRR    Now, Tom, the metallurgy and extraction are key aspects of the process, what have you learned about this project from the results?

35        NAV     What differentiates Cardinia from many other gold projects is that the ores are soft and near surface and that translates to cheap mining by not having to use drilling blast and also was a result of a low waste-to-ore ratio. In the last two months, we’ve reported some very high-grade intersections within 5 metres to 20 metres below surface and grade always works wonders on

40                    operating costs. If you combine that with the low-cost processing options under review, you have the makings of a highly profitable low-risk operation that can really kick-start our long-term development. The potential to get by without a ball mill also removes a mill-constrained throughput bottleneck. In other words, it appears we can get the throughput and operating costs

45                    without the big upfront Capex. Resource and mining studies are still in progress, but my expectation is that we will get at least 2 to 3 million tonnes of this type of ore from Cardinia based on existing resource estimates, and that’s prior to moving on to our other deposits. So I expect that that would maybe give us 2 to 3 years at Cardinia.

            BRR    Just lastly Tom, what can we expect from the Cardinia area and the Leonora project moving forward?

            NAV     Cardinia is now the focus for a low Capex and Opex start-up of the Leonora

5                      Project. My personal view is that while we are generating cash at Cardinia, we will continue to extend the already substantial resource inventory at Mertondale, and can then operate the Cardinia plant with the ball mill and crushing circuit when appropriate to see the project through to completion. A review of the potential of the Leonora Project is underway and some long

10                    strike length and shallow targets are holding together. To me this is likely to translate to further cheap tonnes and solid profitability. Navigator’s PFS, our Pre-Feasibility Study is anticipated in mid-October of this year and with the production target of late 2009. Other feasibility studies including geotechnical, environmental and groundwater studies are already in progress and will

15                    assist us in advancing the project quickly once we’ve finalized the best development strategy through the PFS. Getting capital expenditure and operating costs to a reasonable level is the best way to manage project risk and to generate returns for shareholders. Usually, there is an inverse relationship between capital and operating costs. In other words, you have to

20                    spend a lot of upfront money to get your operating costs down through economies of scale. But I think Cardinia is going to be an exception to this rule, and we will still have the ability to generate -- to have significant throughput. I think the Cardinia start-up scenario will kick off our long-term gold project, which is unusual these days despite the solid gold price in

25                    Aussie dollar terms.

            BRR    Tom, certainly, some encouraging news coming out of the Leonora Project there. We thank you for your time today and look forward to speaking to you soon.

30        NAV     Thank you, Eddie.

            BRR    That was Tom Sanders, Managing Director of Navigator Resources Limited. And 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 (Soddy), and

35                    thank you for listening to Boardroom Radio.

INTERVIEW CONCLUDED

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