13th September 2000

ASX ANNOUNCEMENT

GOONDICUM CRATER ILMENITE & TITANO-MAGNETITE PROJECT
GOONDICUM CRATER ILMENITE RESOURCES INCREASE

The Company is pleased to announce a further increase in ilmenite and titano-magnetite resources with increases in grade for both minerals.

The Measured and Indicated Resources contained in 78.6 million (previously 82 million) tonnes of mineralised eluvium are:
Cut-off 3%
Ilmenite
Measured
Indicated
Total
Ilmenite
Grade %
Tonnes
Grade %
Tonnes
Grade %
Tonnes
Ilmenite
5.2
3,000,000
4.4
900,000
5.0
3,900,000
Titano-magnetite
3.1
1,769,000
2.2
470,000
2.8
2,239,000

This represents an increase of 200,000 tonnes of ilmenite complemented with a grade increase from 4.5% to 5%.
Titano-magnetite resources has increased by 139,000 tonnes with a grade increase from 2.5% to 2.8%.

MARKETS
Ilmenite markets continue to increase with June 2000 quotations for Australian bulk concentrates (minimum 54% TiO2) in the A$140 to A$165 range and spot prices in the A$160 to A$180 range. Considering the current trend Goondicum Ilmenite at 49% to 50% TiO2 is expected to achieve a sale price of at least A$120 per tonne.

By order of the Board

LAURIE G JOHHNSON

Managing Director

The information in this report insofar as it relates to ore or mineralisation is based on information compiled by Mr L G Johnson, a full-time employee of the Company, who is a Corporate Member of the Australasian Institute of Mining and Metallurgy and who has a minimum of five years experience in the field of activity being reported on.