Today the price of gold passed US$1250 per fine ounce for the first time, before dropping back . These world values describing a relative worth for gold are unfolding beyond influence, it seems. In this gold market, Mount Rommel shareholders have an added "page" on progress at Allendale, in EL3821, as described below.

The data here includes "exploration news" for the gold fields of Victoria (I believe).

To put the work below into proper context, the total number of ground gravity stations by the Government when it authorises ground gravity surveys on a regional basis, across a whole map sheet such as the "Creswick" 1 : 100,000 map sheet is about 780.  The area of that map sheet is about 2520 square km.

The number of Company ground gravity data points in just the 2 square km. area east of Allendale (as seen in the work disclosed here today ) amounts to as many as on the total area of the above map sheet.  Such unusual data intensity has encouraged the geophysical contractors, Fugro, to consolidate two earlier surveys into the composite reproduced below.

On 4 June 2010, Fugro reported to the Company.  As stated in the "Outlook" of 9 April last, which see for illustrations about this small area, Directors now disclose the Fugro results in illustrative form.  The preferred interpretation of the same data is to be found under Current Projects, Allendale, this web-site.

Here today are included two extracts from the current Fugro Report. These are firstly, the (Fugro) Figure 2 (the station plots as for just the last survey) and the (Fugro) Bouguer illustration which is a composite of data from all surveys since year 2006.  This composite totals 473 stations. The Company data extends back to include that from surveys since 1997, enabling our consultants to work with a composite total of nearly 800 for this same area.

What does all this data mean??

We have a method of sorting out what we believe to be "anomalous".

The end result is an interpretation, see the web-site drawings, which Directors believe should provide a good guide for future drilling.  Without such an interpretation there can be no definition of the place to work, and without that there is no means to create an opportunity for discovery through future drilling.

In Victoria, the mining law requires licence holders to follow a consent process when proposed exploration is within 100 metres of designated historic places.  In this case, the geophysically-defined “structure” of exploration interest runs right through the shaft zones of two former deep lead mines – see data on the web-site, under “Allendale” – which also are “designated” places.  The Company has already commenced the procedure set down in Section 45, the MRSD Act.

Directors are very encouraged by these exploration results – especially in this particular part of a once-famous goldfield.

Fred Hunt
Chairman
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Previous Chairman's Outlooks
2 June 2010
12 May 2010
09 April 2010
04 March 2010