Traka Resources Limited advised that significant Rare Earth Element anomalism has been detected in auger geochemical samples collected from the Company's 100%-owned Mt Cattlin Gold-Copper Project in south-west Western Australia. The samples were collected earlier this year to assist with Geochemical Footprint Modelling of the gold and copper potential at Mt Cattlin. Ongoing evaluation of the data, further sampling and additional assay is underway, however the Company believes that the REE mineralisation may be associated with carbonatite intrusives within the multi-phase Mt Cattlin intrusive complex.

This view is supported by the previous observation of fenite alteration in drill holes and mapping, with this type of alteration typically found on the margins of carbonatite intrusives. The REE geochemical results, depicted as TREO (Total Rare Earth Oxide), highlight anomalie predominantly in the north-east trend, partly coincident with mineralised structures and the buried gold- copper targets which have been the focus of Traka's previous exploration. All the anomalies occur with the boundaries of the multi-phase and strongly hydrothermally altered intrusive complex.

Additional sampling for REE, including air-core drilling of the anomalies, is currently being considered to obtain profile data through the ionic clay potential in the weathered regolith zone. In addition, two deep diamond drill holes are planned to test the bedrock core of the intrusive complex. These deep diamond holes will test the positions of the buried gold-copper intrusives previously highlighted, as well as providing the opportunity to test for REE-rich carbonatite intrusives.

An EIS (Exploration Incentive Scheme) co-funding grant of $220,000 is being applied to these drill-holes. The geochemistry data comprised bottom-of-hole auger samples (0.5 to 1.0m deep) with the ultrafine clay fraction (-7µm) assayed for REE (Table 1). The full oxidised regolith profile that would host the supergene enriched REE ionic clay potential, which is typically in the range of 5 to 25 metres deep, is yet to be tested but will be prioritised below the peak near-surface auger base anomalies.

Several of these anomalies extend over 2km each and extend beyond the limits of the auger sampling program. The peak TREO anomalism was 617ppm, which is several orders of magnitude above background potential.