Mount Magnet South (MUM)

Shares / Stock Code

MUM

Stock Exchange / Sharemarket

ax

Mount Magnet South (MUM) was incorporated on 27th April 2001 for the purpose of acquiring and exploring mineral interests in Australia. Mount Magnet South was listed on the Australian stockmarket (ASX) on 23 May, 2007.

Mount Magnet South holds more than 100 strategically located tenements (100% ownership) and is focussing on green and brown fields exploration across these holdings, which cover more than 1,500km2 stretching in a contiguous line for 180kms south of Mount Magnet in WA's Murchison region. MMS's primary interest is gold exploration; however it has adopted a greenfields exploration strategy that aims to identify base and other minerals. All the tenements have been selected for their gold and base metal potential and the tenement areas are all close to established infrastructure (including Harmony's 2.7 Mtpa Checker treatment plant) around the townships of Mt Magnet (600 km north-east of Perth) and Paynes Find (450 km north-east of Perth).

On 28th April 2008 MUM completed the acquisition of the Kirkalocka Project assets from Equigold NL, including the Curara Well mine. The addition of this remnant JORC Compliant 140,000oz gold resource altered the course of Mount Magnet South's immediate development with the Company undergoing a dramatic shift towards resource modelling and extension of Curara Well and several excellent exploration prospects. The $5 million consideration MMS paid for the Kirkalocka assets was taken by Equigold NL as $1.5 million cash, with the balance in ordinary shares.

MMS believes with its experienced management team that has a strong technical background in gold exploration as well as prudent fiscal management and administration, it can achieve exploration success in the short term and become a significant gold producer, while also evaluating the potential of other minerals.