Nangali Gold Project

(Terrace Gold: 30%)

Huancabamba District, Northern Peru

Terrace Gold NL (a subsidiary of Indo Mines) and its partner, Compass Resources NL, have completed the purchase from Newmont of the advanced Nangali gold project in Peru for a final payment of US$150,000 (Terrace Gold's share was 30% of the consideration).

Nangali is a highly prospective epithermal gold vein system with a number of established but undrilled prospects defined by Newmont.  The gold targets are high level, low sulphidation epithermal vein system with high grade gold and silver values at the surface assaying up to 98.2 g/tonne gold and 814 g/tonne silver.

The zone of gold mineralisation has a discontinuous strike extent of approximately 2km.  No drilling of these gold targets was ever undertaken by Newmont although drill sites were identified and prepared.

The completiion of this acquisition enables exploration planning to commence for a drilling program to test the high grade Nangali gold vein system against an improving political and social background.