Group 6 Metals Limited provided an update on its regional exploration activities at the Company's wholly owned Dolphin Tungsten Mine (DTM), located on King Island, Tasmania. Drill hole KI 111 is the first hole in the Investigator 24 area for almost 50 years. Exploration drilling has been completed with the assistance of a Tasmanian Government Exploration Drilling Grant Initiative (EDGI).

KI 111 intersected the full mine sequence including B and C lens with associated calc-silicate skarn mineralisation similar to the Bold Head and Dolphin Resources over 6km to the east. Scheelite mineralisation associated with garnet-pyroxene skarn was observed under UV light at several intercepts down hole including 217.4 - 220.6m, 257.7 - 262.0m and 302.3 - 314.0m. Samples have been submitted to ALS Laboratory for analysis with results pending.

The company aims to test the full potential of the area (63Km2) under exploration lease and to extend the current project life beyond the currently 14 years through near mine and exploration drilling projects. A second hole KI 112 collared 140m south is currently underway. Group 6 Metals mobilised an exploration drill rig to King Island to conduct an exploration drilling program testing the western margin of the Grassy Granite, at the Investigator 24 prospect.

Regional geological mapping and wide spaced exploration drilling completed by historical mine operator Geopeko in the 1980's identified a 9km strike length of geology prospective for scheelite mineralisation on the periphery of the Grassy Granodiorite. Much of the prospective area remains to be drill tested with the Investigator 24 site having only one incomplete diamond drill hole completed in 1974. The primary objective of the drilling is to test the Lower Grassy Group formation which hosts the world class tungsten resources at Dolphin and Bold Head.

Skarn formation and scheelite mineralisation have occurred where Lower Grassy Group carbonates come into direct contact with the intrusion, or adjacent to brittle faults intersecting the intrusion. Mineralisation of the known deposits is hosted within a 100-200m thick sequence of complex skarn mineralogy with two main altered dolomite horizons known as B and C Lens both of 10-30m thickness separated by a similar thickness of skarn altered volcanic sediments. The Investigator 24 Prospect is located over 6km west of the Dolphin and Bold Head deposits.

It is one of several priority target areas identified by the Company on its 100% owned Exploration Licence EL 19/2001 which covers approximately 63km2. Only one incomplete diamond drillhole has been drilled in the locality in the mid 1970's within an area of almost 1km strike length. The first reconnaissance exploration drillhole KI 111 in this area has been completed with the second KI 112 under way.

Drillhole KI 111 has intersected the host B lens and C lens dolomite horizons and associated pyroxene-garnet calc-silicate skarn adjacent to the Grassy Granodiorite. The hole ended in the Grassy Granodiorite at a depth of 329.4m. Skarn mineralisation has been observed in the drill core with scheelite mineralisation confirmed visually under ultraviolet light within the skarn.

Scheelite fluoresces blue-white under ultraviolet light. Trace scheelite associated with skarn was visually observed over extensive lengths with three intercepts of what is anticipated to be low to medium grade scheelite mineralisation. Mineralisation at Investigator 24 is directly analogous to the Dolphin and Bold Head deposits, hosted in the same calcareous volcaniclastic sediments near the base of the Grassy Group where they are in close proximity to the Grassy Granodiorite.

The host sequence is interpreted to dip shallowly east, where it is truncated by the west dipping margin of the Grassy Granodiorite. Mineralisation at Bold Head and Dolphin is controlled by folding and brittle faulting within the Grassy Group where it forms roof pendants above the Granodiorite. Although drill spacing is broad, a similar structural setting is possible at Investigator 24.

Further exploration drilling is required to identify significant mineralizing structures.