aug 06 update

Queenstake Resources Ltd. has intercepted high-grade gold mineralization in underground exploration drilling along extensions of mineralized trends at the Mahala deposit (Smith Mine). Results included intercepts 40 feet grading 1.82 ounces of gold per ton (opt) or 12.2 meters of 62 grams of gold per tonne (gpt) and 30 feet of 0.91 opt (9.1 meters of 31 gpt) along the Mahala Dike Trend and located in close proximity to the current development drift at Smith.

Commenting on the exploration results, President and Chief Executive Officer Dorian L. (Dusty) Nicol said, "These are some of the most impressive drill results Queenstake has received from its near-mine underground program. These positive results are expected to provide resource and reserve additions this year and to extend the mine life at Smith beyond 2008. We are excited that these high-grade mineralized drill intercepts are within 180 feet of the current development drift and are currently adapting our mine plans to include initial mining of these mineralized extensions in the fourth quarter of 2006."

The extensions of high-grade mineralization along the Mahala Dike Trend remain open along strike to the northwest and southeast, and will be followed up with additional drilling.

In addition, positive results from underground drilling at the prospective R4 Dike Trend at the Smith Mine has indicated an extension of high-grade mineralization, including separate core drill intercepts of 29 feet of 0.47 opt (9 meters of 16 gpt) and 20 feet of 0.56 opt (6 meters of 19 gpt). These intercepts are within 150 feet of the current development drift in the R4 Dike Trend. The mineralized extension is open along strike to the northwest, and will be followed up with additional drilling.

Queenstake Resources Ltd. is a gold mining and exploration company based in Denver, CO. Its principal asset is the wholly owned Jerritt Canyon gold operations in Nevada. Jerritt Canyon has produced over 7.5 million ounces of gold from open pit and underground mines since 1981. Current production at the property is from underground mines. The Jerritt Canyon District comprises 119 square miles (308 square kilometers) of geologically prospective ground controlled by Queenstake, representing one of the largest contiguous exploration properties in Nevada.

Gold Summit Completes $350,000 Private Placement

Gold Summit has completed, subject to exchange approval, a non-brokered private placement for net proceeds of $350,000 by issuing 2,000,000 units at a price of $0.175 per unit. Each unit consists of one common share and one common share purchase warrant exercisable for 18 months at $0.30. No fees were paid in connection with this financing.

The funds are intended to support continuing field work and compilation on the expanded Monte Cristo prospect in the Walker Lane. There, at the McLean Pit, a 43-101 compliant Inferred Resource of 365,000 tons at 0.19 opt Au was announced in February 2006. The field work includes extensions of soil grids and mapping of the South Gilbert area acquired in April 2006. That, together with completion of the compilation currently underway is aimed at refining targets for drilling later this year. Geochemical results from the recent soil survey have already produced new targets not located by previous explorers. Recently mapping has identified a 40 meter wide zone of steeply dipping banded quartz-calcite veins in altered rhyolitic volcanic rocks. It appears to be untested by angle drilling for bonanza vein mineralization and is located approximately 10 km south of the McLean Pit.

Assay results from three core holes NAC-7, NAC-8 and NAC-9 drilled on the National property earlier in the summer, are available. All three holes, totaling 654 meters in length, were drilled to the west from the east side of Radiator Hill and intersected the Cheeffoo Vein over true widths between 20 and 30 meters. The vein consists of highly altered zones that are extensively brecciated and dominated by clay and fine sulfides, mostly pyrite, with some thin quartz veining. The two southerly holes contained very weak precious metal values, but Hole NAC-9, the most northerly, contained adjoining intervals of (approximately true widths) 1.1 m of 35.2 g/t Ag and 1.5 m of 15.5 g/t Ag. Gold values were 0.1 g/t or less. Interpretation is that, while robustly developed, the Cheeffoo vein shows little sign of open space characteristics over the 200 meters of strike length tested. However, the vein extends 3 km further north and drilling of other targets along it, together with the southern extension of the National vein itself, is deferred until 2007.

In addition to other bonanza vein prospects in Nevada, namely Gold Springs, Blue Sphinx and Gold Basin, GSM recently acquired a sediment-hosted gold target in central Nevada, (news release June 26, 2006). This prospect and the Carolina initiative announced on July19, 2006 are part of an effort to use GSM's technical knowledge, experience and industry contacts to broaden its geological target base.

Gateway Gold Reports Progress on 30,000 Meter Drill Program in Nevada

Gateway Gold Corp. is pleased to report that its 2006 exploration program is well underway in northeastern Nevada. The Company has currently completed 5,073 meters (16,644 feet) of its planned 30,000+ meter drilling campaign on four of its gold properties. The program, budgeted at CDN$7,800,000, called for three diamond drill rigs and two reverse circulation drill rigs. To date, three drill rigs have been underway since June 15 with a fourth rig having commenced drilling on August 7. They are currently deployed on three of the Company's projects; Big Springs, Golden Dome and Dorsey Creek. An additional diamond drill has been requested subject to crew availability.

Big Springs Project

Eleven holes totaling 1,356 meters (4,450 feet) of approximately 20,000 meters of drilling has been completed on the Big Springs project to date. The drill plan was developed in collaboration with Gustavson Associates LLC, who prepared the Company's recent NI 43-101 resource report. The drilling in most part is being directed at zones of known gold mineralization to increase the confidence levels and to test for extensions of the known zones.

Deep Sammy Project

Two drill holes were planned to test Lower Plate targets at South Sammy. The completed first hole targeted the projected intersection of Brien's fault, a major north-east trending structural zone that controlled the distribution of gold mined in the South Sammy area, and the Lower Plate rocks known to exist at depth. The second hole has been started approximately 2,000 feet north of the first and is targeting the intersection of the north-west trending SWX fault and Brien's fault at the Lower Plate contact.

Golden Dome Project

The Golden Dome project lies approximately halfway between the Big Springs project and the Jerritt Canyon mines to the south. Last fall, three widely spaced reconnaissance holes encountered Lower Plate rocks and all of the holes returned significant gold values. A number of structural intersections have been interpreted from the available geological, geophysical and geochemical data. These structural intersections, which are the major controls for the location of gold deposits in the district, are being tested with approximately 5,000 meters of drilling this year. To date, 7 reverse circulation holes have been drilled as "pre-collars" for deeper core holes. Subsequently, two diamond drill holes have been completed, both have intersected Lower Plate where projected, and assays are expected in early September. Drilling continues on the 5 remaining pre-collared holes.

Mac Ridge Project

The Mac Ridge property lies immediately east of the larger Big Springs claim block. This was the location of the first mining at Big Springs, from a small open pit near the top of the ridge.

One of the most exciting developments for the Company in 2005 was the discovery of gold at surface in Lower Plate rocks at the Lower Mac Ridge prospect. This discovery helps outline a large area that is prospective for Lower Plate mineralization. The Lower Plate of the Roberts Mountain thrust hosts the majority of the large gold deposits found in Nevada.

The Company has planned for about 3,000 meters of drilling at Mac Ridge. This program is awaiting receipt of the necessary permits. In the meantime, detailed mapping, additional rock sampling and hand trenching are being carried out.

Dorsey Creek Project

Drilling in 2004 and 2005 encountered significant gold-arsenic-antimony mineralization over thick intervals in a rhyolite dyke. Significant mineralized intervals were encountered over core lengths ranging from 21 to 123 meters. Mineralization in the dyke has been traced over a strike length of 1,200 meters, with a width of 50 meters and a depth of 250 meters.

The size of this gold-bearing system is very impressive. Several compelling targets were developed within the system where the Company's staff believes the opportunity for discovery is high. The main focus in 2006 is to test the down dip projections of the mineralized dike where it intercepts Lower Plate rocks. Approximately 1,000 meters of drilling are being carried out to test these targets. The first hole has reached 270 meters (900 feet) and has started to test the intersection of gold-bearing rhyolite dyke with the Lower Plate.

Receipt of preliminary gold assays is currently taking 3 to 4 weeks from the time the samples reach the laboratory. All samples are prepared and analyzed by ALS Chemex, with sample preparation in Elko and analyses in North Vancouver.

MSHA Approves Proximity Detection System for Mining Industry

The U.S. Department of Labor's Mine Safety and Health Administration (MSHA), in partnership with a coal mine operator and three companies that manufacture and repair mine machinery, today demonstrated the first agency-approved proximity detection system for remote control continuous mining machines. The demonstration took place at a maintenance facility in Shinnston, WV.

Proximity detection systems provide automatic proximity detection and machine shutdown to guard against mine personnel being run over, crushed or pinned when they are positioned in a hazardous area close to the machine. The partnership between MSHA, Nautilus International, Massey Energy Co., Joy Manufacturing and Shinnston-based Repair King Inc., was formed in an effort to address accidents associated with the use of remote control continuous mining machines.

"Since remote controls first came into prominent use in the 1980s, there have been 29 fatal accidents related to the use of remote-control continuous mining machines," said David G. Dye, acting administrator for MSHA. "The very existence of this system demonstrates what can be achieved when the different segments of the mining industry - the mining community - come together to work together as partners to advance safety and health in our nation's mines."

MSHA first began analyzing proximity detection systems in 2002. A review of existing systems found that only Canadian-based Nautilus International had a suitable detection system worth pursuing. The first underground field test of the system took place the following year at Massey Energy's Rockhouse Energy Mine and has since undergone five additional field tests.

The Nautilus system consists of a belt pack unit that identifies the location of the person wearing it, along with machine-mounted electro-magnetic antennae, electronics microprocessor and warning light. The system will become disabled when the cutter motors are running, because there are times during the cutting and loading phase that the operator needs to get close to the machine.

The system also is capable of giving the operator an audio/visual warning when entering a protection zone before the machine shuts down. Additional personnel may be protected if they are wearing a portable protection unit. The Nautilus system received MSHA approval in July 2006. Six months earlier, a system developed by Geosteering Mining Services became the first proximity system to receive MSHA approval.

Continuous mining machines are mobile units consisting of a cylindrical cutting head that constantly extracts coal from the seam and loads it onto conveyors. Remote-controlled continuous miners are used to work in a variety of difficult seams and conditions.

Phoenix Associates to Greatly Increase Production at Murphy Sand and Gravel

Phoenix Associates Land Syndicate today announced that it’s Murphy Sand & Gravel (MS&G) mining operations are being significantly expanded through the addition of new mining equipment at its Pearl River, LA site that will greatly increase production.

Paul Alonzo, President and CEO of Phoenix, stated, "I am happy to announce that a vast amount of new mining equipment is being currently moved to the MS&G mine site. Thanks to the huge demand in the Greater Gulf region for all the products produced by MS&G, Phoenix feels the time is right to greatly expand the mining activities in Pearl River, Louisiana."

The full complement of new mining equipment, valued in excess of $4.3 million, will be delivered over 2-3 weeks. Financing for this equipment is being provided by Superior Concrete Crushing, L.L.C. of which Arnold Roge is President.

Once all the new equipment is in place the rate of production of the MS&G mining operations is expected to rise quickly with anticipated depletion of the mine to now be over the next six to eight years, rather than the original projected depletion of about thirty five years. Projected profits from its mining operations are likely to come in around 10-15 percent of gross revenues.

Mr. Alonzo stated, "I had not expected to see MS&G production to grow to these levels during my tenure as CEO of Phoenix, but circumstances have persuaded our board at Phoenix to move quickly to grow this division because of the huge demand for our products. We feel confident that the large investment being made in our mining operations will pay great rewards to Phoenix and our loyal shareholders."

Coal Industry Poised for National, Global Growth

Powerful forces are driving up demand for American coal, fueling a prolonged resurgence in the coal industry, said a U.S. mining industry leader today at the Ohio Coal Association’s Annual Meeting in Columbus.

“Heightened concern over imported energy, rising energy costs and fuel supply disruptions are leading to a greater appreciation for U.S. coal,” said Kraig R. Naasz, president and CEO of the National Mining Association (NMA), the coal industry’s Washington, D.C.-based trade group. With a 240-year supply of coal secure within our borders, the U.S. is well positioned to use more coal for generating electric power and for the production of high-quality transportation fuels, said Naasz.

According to NMA, 2006 will mark a second consecutive year of record U.S. coal production, as U.S. energy companies plan a major expansion of coal-based power plants. This performance mirrors the increasing use of coal around the world, said Naasz. In the latest international energy outlook by the U.S. Energy Information Administration, global demand for coal by 2025 is forecast to be 25 percent higher than last year’s forecast, as Europe, India and China increase coal consumption.

Ohio’s recoverable coal reserves of 12 billion tons make the state an important player in the resurgence of the U.S. coal industry. At current production rates, Ohio has enough coal to satisfy its coal needs for the next 200 years and to continue producing coal at current levels for the next 500 years.

Naasz also sees a growing acceptance of coal by environmental groups persuaded that clean coal technologies can sharply curb power plant emissions, citing a billion-dollar plant using the latest coal gasification technology that is planned for Ohio.

Liquefaction technology also presents coal with new opportunities to offset some of the nation’s rising cost of imported energy, said Naasz. Several bills in Congress would offer financial incentives to jump start the construction of coal liquefaction plants capable of producing ultra-clean diesel fuels. Already, South Africa liquefies coal to satisfy more than half of its transportation fuel needs.

Concerns over global warming have led some to propose a cap on heat-trapping emissions from coal-burning power plants. "A far better approach," said Naasz, "would be to rely on technological innovation to curb these emissions. Gasification technology already exists, and the technology to capture and sequester greenhouse gases safely underground is not far away."

Using technology to control greenhouse gases would also help curb emissions in China and India, where greenhouse gas emissions will surpass our own by 2010. Their heavy coal use and rapid economic growth will make these countries major beneficiaries of clean coal technology pioneered in the United States.

CANADA

Coastal Copper Project: Drilling Expands Double Ed Massive Sulfide Deposit

Kenrich-Eskay Mining Corp. has now received base metal and precious metal assays from an additional seven diamond drill holes from its 2006 exploration program on the Coastal Copper Project, near Anyox, BC.

The Company is currently conducting drilling programs on two major projects: the Coastal Copper Project in the Anyox mining camp south of Stewart, B.C. and the Corey Project in the Eskay Creek mining camp north of Stewart. A total of four drills are currently deployed on these two projects. Field crews at the two projects comprise a total of 60 persons conducting geological mapping and core logging, geochemical sampling, prospecting of geophysical anomalies and diamond drilling.

The Company was very pleased to add the Coastal Copper project to its Stewart area property portfolio. Now, both of the Company's mining properties straddle a regional-scale structural feature that spawned the rifting, volcanism and sedimentation of the Eskay Rift. Those rift-related rocks host the very gold-silver rich Eskay Creek massive sulfide deposit of Barrick Gold. However, the southern continuation of that same rift spawned copper-zinc-silver massive sulfide deposits at Hidden Creek and Bonanza that produced about 22 million tonnes of copper-zinc-silver ore for the Anyox mill and smelter complex.

The Coastal Copper project abuts the Hidden Creek and Bonanza mining properties, and contains within its boundaries, over 20 km strike length of similar rift stratigraphy as those previously exploited copper-zinc-silver deposits. This geology is expected to yield deposits that tend toward much larger size than Eskay Creek, rich in copper and zinc, but on average, lower in precious metals. The most significant of the Coastal Copper prospects is the Double Ed volcanogenic massive sulfide deposit. The Company is currently drilling that deposit, to depth, and along strike to the north and south.

Falconbridge to Launch Perseverance Zinc Mine Project

Falconbridge announced that it expects to invest approximately US$130 million (Cdn$145 million) in the development of the Perseverance zinc mine, made possible in part by stronger zinc markets and the continued collaboration and support of the Quebec Government. The Quebec Premier Jean Charest and Minister of Natural Resources and Wildlife, Pierre Corbeil, were in attendance at the press conference in Matagami.

Construction will last about two years, with the mine's life expectancy estimated at roughly five years. The mine will employ approximately 250 people during the construction's peak period and about 225 thereafter.

Jean Desrosiers, Vice-President, Falconbridge Zinc Group, underscored the positive economic news for the people of Matagami. "While the size of the Perseverance deposit will allow only a relatively short operating life, the investment will nevertheless give the community a seven to eight-year period to pursue greater economic diversification."

The zinc produced at the Perseverance mine will be processed at Falconbridge's former Lac Matagami mine facilities where, in anticipation of the Perseverance project start-up, the Company retained the administrative offices and concentrator after the Bell-Allard mine's closure in 2004. The annual production of 228,000 tonnes of zinc concentrate will be shipped and processed at the CEZinc Refinery in Valleyfield, Quebec, the second largest refinery in North America, employing 700 people.

Falconbridge remains firmly rooted in Abitibi and Northern Quebec, with exploration camps in Rouyn-Noranda and Matagami, as well as in the Nunavik where, alone or with partners, it has invested more than Cdn$20 million in exploration annually in recent years. Falconbridge operates a smelter in Rouyn-Noranda, employing 560, and a nickel mine in the Nunavik, employing 500 and using the services of 250 subcontractors.

Perseverance has measured and indicated resources of 5.1 million tonnes grading 15.8 percent zinc, 1.24 percent copper, 29 grams of silver per tonne and 0.38 gram of gold per tonne. The Falconbridge exploration team won the 2001 Bill Dennis Prospector of the Year Award from the Prospectors and Developers Association of Canada for its discovery of this deposit.

Falconbridge Preparing to Invest Several Hundred Million Dollars in Infrastructure and Facilities at Raglan Nickel Mine in Nunavik

Falconbridge announced the launch of two important studies for the Raglan Mine expansion. The first will focus on developing new ore reserves to replace those depleted since the mine's opening in 1997. This investment will likely reach nearly Cdn$240 million over six years.

The second study is to support the expansion of nickel ore production from one million tonnes per year to 1.3 million tonnes as early as 2009. This 30 percent increase, requiring an additional investment of roughly Cdn$250 million, would create 50 additional jobs and increase the value of annual royalties Falconbridge pays to local Inuit communities. On April 7, 2006, Falconbridge presented a Cdn$9.3 million cheque to the Makivik Corporation covering the payment of the first royalties as part of the Raglan Agreement.

This amount is in addition to the nearly Cdn$200 million in equipment and upgrades Falconbridge has invested at the Raglan Mine in the past two years. The initial investment in the construction of Raglan was in excess of $600 million.

Falconbridge also announced the start of major renovations to its Deception Bay loading dock. The Cdn$50 million investment will extend the dock's service life and support the production increases.

"These studies will enable the Raglan Mine to expand production while maintaining the flow of benefits to local Inuit communities, and also respecting the environment", stated Ian Pearce, Chief Operating Officer of Falconbridge. "Falconbridge has strong roots in the immense Abitibi-Temiscamingue region of Quebec, through its predecessor company Noranda. Over the past 75 years we have made every effort to combine economic and community benefits in all our projects, while continuously improving our environmental performance. In recent years, Quebec has demonstrated its unequivocal support for the mining sector and is today one of the world's most attractive jurisdictions for our industry."

Inaugurated in 1997, the Falconbridge nickel mining camp at Raglan comprises three underground mines, one open-pit mine, as well as a concentrator. The site enjoys year-round road connections to a landing strip at Donaldson and to harbour facilities at Deception Bay. Ore from the mine is crushed, ground and processed into nickel-copper concentrate at the Raglan plant.

MEXICO

Capital Gold Secures US$12,500,000 Senior Project Finance Facility with Standard Bank Plc for the El Chanate Gold Project

Capital Gold Corporation is pleased to announce that it has closed the Senior Project Finance Facility with Standard Bank Plc for up to US$12.5 million, to complete the construction and start-up of its El Chanate open-pit gold mining project in Sonora, Mexico.

In developments at the El Chanate mine, site clearing, access improvements, explosive magazines, water and electrical supply are in the final stages of completion. John Brownlie, VP Operations adds "We have taken an aggressive approach during the pre-financing period of the project to set the stage for a fast track construction schedule. We have been in constant contact with major equipment suppliers to ensure that we can meet our construction goals. With the project financing now complete, we are now in a position to begin to evaluate additional resource potential adjacent to the current operation".

A revised resource estimate study has been completed by SRK Consulting of Denver, CO and submitted to the appropriate regulatory agencies. The study identifies an increase in the proven and probable gold reserves at El Chanate. Current proven and probable reserves are 367,000 ounces.

Mr. Dieterle said that with the completion of the financing, Capital Gold has embarked upon a new chapter of development. "Today, we begin the process of moving our Company from being an exploration company to that of being a gold producer. We have set many goals that we intend to accomplish in the months ahead and you may be sure that we shall be keeping everyone advised of our progress."

PERU

Norsemont Significantly Increases the Size of the Mineralized Zones and Adds Third Drill Rig at the Constancia Project in Southern Peru

Norsemont Mining Inc. is pleased to announce the arrival of a third diamond drill rig at the company's flagship Constancia Project.

Recent drilling at the Constancia Project has shown that the mineralization remains open on all sides of the deposit. Strongly enriched chalcocite and high grade skarn copper mineralization are being encountered over significant widths especially on the western and southern margins of the deposit.

"We are particularly pleased with the success of the drilling program this year and continue to see strong copper mineralization over significant, generally greater than 100 metre, thicknesses in recent drilling, which has encouraged us to bring on a third drill rig to the property" , said Chief Geologist, Thomas Henricksen. "The Constancia Zone now has dimensions of 1,000 by 900 meters", he added.

The ongoing program will continue with step-out holes on 100 metre centres on the San Jose and Constancia Zones, with Constancia being the immediate priority. Some specific exploration targets beyond the 100 metre stepouts are also being planned for immediate drilling. The company has completed over 6,100 meters out of a planned, second phase 20,000 metre drill program.

"We are now planning to report an interim resource estimate in September this year. We are clearly pleased with the results so far. When we have defined the limits to the mineralization we are planning to initiate a scoping study on the Constancia deposit which will involve metallurgical testing, preliminary engineering and process design," said President Bob Baxter.

The drilling program and geological studies at the Constancia project are being supervised by Chief Geologist Dr. Thomas A. Henricksen, P. Geo., Norsemont's Qualified Person as defined by NI 43-101, who has reviewed and approved the information contained in this news release. Core samples are cut with a diamond saw, with one-half of the core placed in sealed bags, and shipped to ALS Chemex Assay Labs in Lima, Peru. The program includes an extensive quality control program for assaying which includes the systematic use of standards, blanks, and field duplicate samples. Secondary laboratories are also used for check assaying.

AUSTRALIA

Metso to Supply Mining Equipment to Mt Isa Mine in Australia

Metso Minerals will supply grinding, crushing and screening equipment to Xstrata

Plc's Mt Isa Mine operation in Queensland, Australia. The value of the order is

approximately €20 million. The delivery will be completed by the end of 2007.

The order is comprised of a SAG mill with dual drive 2 x 5,750 kW and two ball mills with dual drives 2 x 5,750 kW each, a cone crusher and a discharge vibrating screen, complemented by installation services and spare parts. The equipment is for expanding the mine operation with a new lead and zinc concentrator plant.

With deposits in silver, lead, zinc and copper, Mt Isa mine is considered highly productive. Following this expansion it will become the world's third largest zinc mine producing 800,000 tonnes of zinc concentrate annually.

Xstrata Plc is a major global diversified mining group, listed on the London and

Swiss stock exchanges and based in Switzerland.

Metso is a global engineering and technology corporation with 2005 net sales of approximately EUR 4.2 billion. Its 22,000 employees in more than 50 countries serve customers in the pulp and paper industry, rock and minerals processing, the energy industry and selected other industries.

Mining Indices in Australia Will Once Again be Separate

The mining sector's undeniable status as the engine room of Australia's economy will be formally recognized, when ratings agency Standard & Poor's reinstates dedicated sharemarket indices for the gold and mining sectors.

Timed to coincide with the opening of this year's Diggers & Dealers conference in Kalgoorlie, the move comes four years after the “old economy” mining indices were controversially scrapped when S&P took on management of the Australian Stock Exchange indices, and rolled mining companies into its broader materials index alongside non-miners such as CSR, Rinker and PaperlinX.

But with Australia now three years into the greatest mining boom in more than a generation, investors, companies and analysts have been screaming for dedicated indices to benchmark the industry's performance ever since.

The resources sector, seen as a relic during the tech-boom of the 1990s, now accounts for more than 20 per cent of the market value of all companies listed in Australia, and a third of all listed companies by number.

S&P index services chief Jason Hill said the new indices would provide “real time insight” into industry trends and enable investors to precisely monitor the relative performance of the sector and companies.

“These indices are ideally designed to support investors, the Australian mining sector which is currently experiencing robust operating conditions, and other stakeholders,” he said.

Mr. Hill said the new indices had been designed from the ground up after “extensive market consultation” and were not simply a rehashed version of those scrapped in 2002.

The S&P-ASX 300 metals and mining index will be based on all top 300 companies involved in the mining sector, including producers of aluminum, gold, steel, precious metals, gems, coal and diversified minerals. The S&P-ASX all-ordinaries gold index will consist of all companies currently included in the sub-industry of the all-ordinaries index.

StockResource co-founder Grant Craighead said S&P's decision was vital if Australia was to regain ground lost to Canada in recent years as the premier capital market for the resources industry.

“These things are important as benchmarks and ways of recognizing the contribution of mining to the economy . . . and can become benchmarks globally,” he said.

“Canada has really stolen the march on us generally in terms of investing in mining shares, so I guess this is part of the fightback phase to get renewed focus on Australian mining.

“The more visible we can get and the more credit we can get for raising capital and funding exploration and development for the mining industry the better.”

Hartleys institutional adviser Rob Brierley said the move would make it easier for investors to track the industry's performance. It was primarily a reflection of the industry's importance to Australia's economic health.

“The resources sector is once again a major influence on the Australian market and has really been the engine room behind the whole market's performance over the last 12-18 months,” he said.

“So I think it's more symbolic, that after shrinking as a market influence in the late 90s and early 2000s, the industry has now re-established itself as the growth engine.”

Association of Mining and Exploration Companies chief Justin Walawski said the association, which lobbied hard for the move, hoped the new indices would raise the profile of the industry and “in turn . . . hope it provides some incentive for greater investment as well”.

Minerals Council of Australia chief Mitchell Hooke said the introduction of sector specific indices would better promote the industry, and make it easier for investors to invest.

But Perpetual Investments fund manager Matt Williams said the move would have little influence on the major investment funds, and warned it was more of a sign that the resources boom had peaked.

“If you take a bigger picture view, you could say it's a classic top of the market indicator,” he said.

SOUTH AFRICA

South Africa's Afgold to Build New Mine near Johannesburg

Aflease Gold Ltd (Afgold) of South Africa has approved the building of a new mine near Johannesburg in the East Rand area. It is the first new mine to be constructed there in 28 years, and it will start producing gold in three years. The mine’s projected goal is a reserve of 1.07 million ounces of gold with an average of 110,000 ounces of gold per year. The mine, Modder East, will be built where gold was first found in South Africa.

With the gold market turning a profit recently, many closed mines are reopening and companies, such as Afgold, are building new mines. The domestic gold prices have increased 50 percent in the past year.

The plans for Modder East state that the mine will be a shallow underground mine (300-530 m) and the first phase will last about 10 years.

Summary of Reuter’s article, Aug 16, 2006

TANZANIA

Exploration of Gold Anomaly Discovery on Itilima, Tanzania

Kim Harris, Chief Executive Officer, Midlands Minerals Corporation is pleased to announce completion of an in-fill MMI survey on a geological gold anomalous zone on PL 2043 on the eastern part of the Itilima project in Tanzania.

As reported in the press release of March 2nd, 2006, Midlands discovered a geochemical gold anomalous area located 5 kilometers east of the Itilima artisanal site. An in- fill MMI survey was subsequently conducted on PL 2043. "By confirming and having more detailed information on this new area, we will increase our number of drill targets", said Marc Boisvert, P.Eng, Vice President Exploration.

"We are encouraged by the fact this area was never explored in the past and the anomaly is covering favourable rocks as a felsic quartz eyes dyke, and is located at the contact of a basalt unit and metasediments-felsic pyroclastic volcanic units. This geological environment is considered favourable for gold deposits in the Lake Victoria Goldfield", said Marc Boisvert.

The program, which was supervised by Marc Boisvert, consisted of "Mobil Metal Ion" (MMI) geochemical soil sampling over a 9 km2 area of PL 2043 focusing on in-fill of anomalous reconnaissance results. The in- fill sampling was done on a grid 200 meters by 80 meters and was conducted between a previous 400 metre spaced line survey.

A total of 267 samples were collected and samples were sent to SGS Laboratories in Mwanza on July 28, 2006 and will be shipped to SGS Laboratories in Canada where the samples will be analyzed for gold plus four pathfinder elements (Co, Ni, Pd, Ag). Analysis will be by the "Mobile Metal Ions" (MMI-B5) procedure.

Lake Victoria Goldfields is the largest gold producing area in Tanzania with more than 40 million oz of gold in known reserves. Major gold mines in the area include Barrick Gold's Bulyanhulu with over 16 million oz, Barrick's Mara Mine with 4.6 million oz, and AngloGold Ashanti's Geita Mine with over 14 million oz of gold. Resolute Mining Company's Golden Pride Mine with 2.2 million oz of gold, is to the south of Midlands' Itilima Project.

INDIA

Gulf Oil Receives Contract from Singareni Collieries

IDLconsult, the mining and infrastructure division of Gulf Oil Corporation Ltd, was granted a Rs 110 crore (1.1 billion Rupees) mining contract from Singareni Collieries Company Ltd. The contract is for a 24 month project in Manuguru, AP.

Singareni Collieries is a leading coalmining company and IDLconsult is engaged in drilling, blasting, excavation and dump-yard management in the mining sector.

Gulf Oil added that the IDLconsult had also secured and executed two major coal mining contracts worth about Rs 90 crore (900 million Rupees) for Singareni Collieries earlier.

CHINA

Minco Silver Provides Drilling Update and the Development Plan

Minco Silver Corporation is pleased to report that its drilling program on the Fuwan Silver Project located in Guangdong Province, China continues to confirm very good grade silver and base metal values.

Currently there are five drills on the property, which have completed thirty-one drill holes aggregating approximately 7500 meters. Assay results for the initial nine holes drilled in the Phase I Program were summarized in press releases dated March 3, 2006 and May 10, 2006.

Assay results are presently available for eight holes in the Phase II Program highlighted by drill hole FW0013 which returned 6 meters grading 575.2 gm/t silver, 0.41 gm/t gold, 0.57 percent lead and 2.36 zinc and drill hole FW0018 which returned 3.3 meters grading 251.9 gm/t silver, 0.14 gm/t gold, 0.17 percent lead and 0.40 zinc. Two holes (FW0018 and FW0021) returned individual values greater than 1 kilogram (1000 gm) per ton.

The new holes include fill-in holes in the sparsely drilled southwest portion of the mineralized areas and are considered very encouraging. Samples were prepared and assayed at PRA Kunming lab (Process Research Associates Ltd.) with supervision of a certified BC assayer. Silver was assayed with acid digestion and AAS finish. Assay results were further checked at PRA's Vancouver lab as an internal check. Reference materials were inserted by Minco staff geologists as a further assay control. The assay data provided by PRA is considered acceptable.

Upon completion of the current drilling program, the Company will commission a preliminary economic analysis to determine project viability and identify the initial mining area. This will be followed by a 5,000m infill drilling program, geotechnical and hydrological studies, metallurgical testing and environmental assessment. A subsequent pre-feasibility study will be initiated in the first half of 2007. Minco Silver plans to apply for a mining license for the project during the second half of 2007. The Company is working aggressively to bring the project to the production stage at an early date. This news release has been reviewed and approved for release by William Meyer, P.Eng. Chairman of the Board, and designated Qualified Person.

China Huludao Zinc Aims to Buy Mines, First in Tibet

Huludao Zinc Industry Co. Ltd, China’s largest zinc producer by capacity, plans to buy mines to reduce purchase needs from domestic and foreign markets. Currently, the company does not own any mines, but their production capacity is 390,000 tonnes of zinc a year. Even though they are the largest buyer in the market, they currently purchase all of their zinc concentrate, the raw material, from local and overseas sources.

They also produce lead and refined copper with a 30,000 and 100,000 ton capacity for each respectively. They presently buy almost all of their raw materials, but are planning to buy a mine in Tibet in order to reduce their dependence on other markets. They are planning to buy shares of Huaxia Mining which is currently establishing a mine for zinc, lead, copper and silver. With reserves of 200,800 tonnes of zinc, 200,400 tonnes of lead, 10,600 tonnes of copper and 1,180 tonnes of silver, the mine will be exhausted in short order, but nonetheless, it is a first step towards larger investments in resources for Huludao.

Huludao also plans to build a new zinc alloy plant. This investment will cost 280 million yuan ($35.1 million) and its capacity would be 80,000 tonnes per year. It will begin operating in 2007.

Zinc production is up from last year, and Huludao predicts that they will produce 330,000 tonnes of zinc compared to 250,000 tonnes last year. Most of this added zinc output is due to a new 90,000 tonne per year lead and zinc plant that began production earlier this year. A 130,000 tonne per year plant was also restarted, but only at a rate of 50,000 tonnes per year.

Due to demand and ore shortages, zinc prices are at an all time high and continue to rise.

Summary of Reuter’s article, Aug 14, 2006

SWEDEN

Lundin Mining Spends US$6.4 Million Upgrading Zinkgruvan Plant in Sweden

Lundin Mining Corporation AB said it is investing US$6.4 million upgrading its plant at Zinkgruvan in Sweden to meet new environmental standards and increase output.

The investment will upgrade the ore dressing plant and overhaul the primary autogenous mill at Zinkgruven.

'The investment will also enable higher mill capacity and a more efficient handling of mill feed. We plan to increase Zinkgruvan's ore volumes in the next coming years and the investment is an important step in this process,' said Stefan Romedahl, managing director at Zinkgruvan.

Zinkgruvan mainly mines zinc, with lead and silver as by-products.