• Joint Venture agreement with Noah Resources NL executed in July, 2007 covering this and the Wymah project. Noah to expend $400,000 over 2 years to earn a 70% interest. Monaro retains the right to participate in further exploration upon Noah earning a 50% interest in the tenements.

• Noah to seek ASX listing in late 2007. Monaro shareholders to be entitled to $500,000 worth of shares in new IPO
• Confirmation of inferred mineral resource of approximately 245,000 tonnes @ 0.27%Sn and 0.45% W at the Mt Paynter Tungsten Prospect. The resource is compliant with JORC Code standards
• Tenement prospective for extensions to known tungsten and tin prospects

Setting:

Exploration Licence 6356 contains the Mt Paynter tin and tungsten lode together with a number of smaller lodes all of which are hosted by an acid igneous intrusive. This lode mineralisation has been well defined by diamond and percussion drilling by previous explorers. A review of the previous drilling and geological data confirms previous estimates of an inferred mineral resource containing over 200,000 tonnes of tin and tungsten mineralisation.

Location:

The Project is located on the NSW-Victorian border, approximately 5 kilometres west of Jingellic. The mineralised lodes are located at the top of a granite massif in relatively rugged alpine country (Figures 1 to 3).

Figure 1: Regional setting for the Mt Paynter Project

Figure 2: Location of Mt Paynter Sn/W workings – positions approximate.



Figure 3: Adit Portal, with extracted mullock
fanned out over steep slope in centre of photo.

Geology

The Mount Paynter tenement covers a part of the early Silurian syn-kinematic Koetong Granite and its granitoid variants which is in contact with Ordovician deep water flysch sediments of the Wagga marginal basin. Younger olivine dolerite dykes traverse the area in a northeast trending direction.
The Koetong Granite is predominantly a coarse grained biotite adamellite which characteristically contains large feldspar phenocrysts. Throughout the adamellite body there are scattered outcrops of dark pink grey medium grained quartz diorite and immediately north west of the Mt Paynter lode there is a large body of this quartz diorite. A weakly magnetic monzonite porphyry has also been mapped by previous explorers about 2 kilometres to the southeast.

The adamellite is traversed by aplite and olivine dolerite dykes, having a predominant northeast orientation. Tin and tungsten mineralisation is found within quartz veins of varying thickness throughout the tenement, in granitoids and extending into the metasediments. The mineralised veins contain tourmaline, sulphides (predominantly arsenopyrite, but with pyrite, chalcopyrite, sphalerite and trace galena) fluorite, cassiterite and scheelite and vary in thickness from 5 mm to 3 metres and in length from 0.2 metres to 1,000 metres.

Veining may be associated with and flanked by greisenisation, sericitisation and chloritisation of the host rock (Figures 4 and 5). Vein orientations are predominantly east-west although there is also a 0550 orientation, and follow the common joint directions as joint fill.

The Mt Paynter Lode however appears to be a fault of east-west orientation which has displaced the granite intrusive contact and a dolerite dyke by approximately 130 metres to the east. At surface the lode varies from 0.8 to 2.0 metres thick and dips steeply to north and south. Other mapped lodes to the south include the Hillside (up to 2 metres thick) and Crawfords (up to 1 metre thick), No. 7 Lode and No. 8 Lode (up to 0.8 metres thick).

Previous Exploration

The most comprehensive exploration of the prospect area took place between 1969 and 1982 and included extensive diamond and percussion drilling in conjunction with IP surveys and costeaning. Twenty six drill holes (18 diamond, 8 percussion) for a total of 4121.6 metres were completed durung this phase. Twenty four of these explored the Main Lode and two the Hillside Lode. In addition, nineteen costeans were excavated and mapped at 1:100 scale and the Mt Paynter adit was extended by 254 metres to approximately one kilometre to intersect the Main Lode (Figure 6). Cross cuts along the Main Lode were completed over a distance of 232metres.

Figure 6: Geology and existing workings at the Mt Paynter Prospect.

In addition, bulk sampling of the lodes for metallurgical purposes was also completed together with geostatistical analysis using assay data from drill hole intersections and channel assays. The results of the analyses indicated average grades of 0.35% tin and 0.51% tungsten respectively.

In preparing an independent experts report for the Noah Resources IPO, Geos Mining reviewed the available drill data and the underground sampling and has estimated that the Mt Paynter ore shoot contains an inferred resource of 245,000 tonnes grading 0.45% tungsten and 0.27% tin which is compliant with JORC Code standards. This estimate excludes the area affected by the intrusion of the dyke. The drilled portion of the shoot is illustrated in Figure 6. Details of the drilling and adit sampling are further defined in Figure 7.

Figure 6: 3D view of the Mt Paynter ore shoot


Figure 7: Long section of the Mt Paynter ore
shoot showing drill hole and adit sampling tin
and tungsten grades

Exploration Activities by Monaro Mining NL

Geological modelling has indicated that the thickest part of the lode coincides with the centre of the main mineralised zone and plunges steeply northeast. The lode is generally 0.5 to 3m in true thickness. A barren dyke intersects the eastern part of the lode. Contouring of assay data for the ore bearing shoot confirms the Company’s view that further drilling is warranted both down and along plunge of the mineralised lode (see Figures 8 and 9).

Figure 8: Tin values in drill holes intersecting the Mt Paynter ore shoot




Figure 9: Tungsten values in drill holes intersecting the Mt Paynter ore shoot

Analyses of drill core has indicated the presence of at least five intersections of additional mineralization in secondary structures near the main lode. In addition, drill logs indicate that a number of other similar structures were drill intersected but not analysed. Most of these structures are scheelite bearing greisen veins, which were not the focus of historic mining. While these additional greisens are not thought to be very persistent, they could represent significant additional tonnages.

Other lodes in the area have been located by mapping and rock chip sampling, and in some cases, have been tested by costeaning. Only the Hillside lode has been drill tested. The Wolfram Lode is around 50m long and averages only 0.5 m wide; analyses include 0.05%Sn and 0.42% W.

Costeaning has shown there is no direct continuation of lode between the Main Lode and the Wolfram Lode, but the whole of this major structure has not been tested and other shoots may be present. The Hillside Lode is estimated to be 270m long and up to 2m wide. It is rich in tin (surface samples gave 0.14 to 1.06% Sn) but low in tungsten (0.01 to 0.07% W). Two holes were drilled to intersect the lode at around 100m depth but only barren (less than 100 ppm Sn or W) greisenous zones were intersected. Due to the steep topography, only one section of the lode has been tested.

Crawfords lode is 150m long and up to 1m wide. Costean samples include values up to 0.67% Sn and 0.05% W. Surface sampling showed at least three other veins to be mineralized, (including the No. 7 and No. 8 lodes shown on figure 3) but these have not been costeaned. All these occurrences should be followed up. Further surface exploration may also locate additional scheelite bearing greisens, which are expected to outcrop poorly in this terrain.


Proposed Exploration Activities

Noah Resources NL plans to undertake a detailed exploration program immediately after listing. This will include data compilation, surface rock chip and soil sampling, infill stream sediment and soil sampling, detailed ground geophysics and possible aeromagnetic surveys, and percussion and diamond drilling.