Matrix Metals | Copper Production and Exploration

Matrix Metals Limited is pleased to announce further results from the White Range Project drilling program completed during December 2002. High grade copper intercepts from that program at the Greenmount deposit were reported on 14 January 2003.

Gold assays from the drilling program at Greenmount have now been received and are reported in this announcement.

In concentrating on elevating the size and resource category of the Greenmount oxide copper deposit, the Company had not previously focused on the significant existing gold resource within the Greenmount deposit.

The existing gold resource comprises 3.6 million tonnes @ 0.8 g/t gold (approx 90,000oz).

The grade and tenor of the gold intercepts recorded from the recent drilling program, in the primary pursuit of the copper resource, highlight the potential of the gold resource to significantly enhance the value of an already robust and rapidly growing oxide copper project.

The most outstanding gold intercepts reported in the gold resource at Greenmount include:

• 4m @ 5.3 g/t Au ( incl 2m @ 9.6 g/t Au),
• 4m @ 3.2 g/t Au,
• 10m @ 2.2 g/t Au,
• 6m @ 3.2 g/t Au,
• 4m @ 2.8 g/t Au,
• 10m @ 2.1 g/t Au.
  

The gold resource and new intercepts are contiguous with the existing copper resource, both of which are hosted predominately in the Marimo slates. These new intercepts confirm the opportunity to grow the gold resource and to capitalise on the potential significant value of the ultimate gold resource, already totalling in excess of 90,000oz. The gold resource is considered entirely complementary to the copper focus of the project and to the Company's heap leach expertise.

The nature of the existing gold mineralisation, when considered with the initial metallurgical test-work results on the copper resource, has lead the Company to believe that the gold mineralisation is likely to be amenable to heap leaching.

The December 2002 drilling program has confirmed the potential to grow the existing gold resource (indicated and inferred gold resource of 3.6 million tonnes @ 0.8 g/t gold) and in addition, has extended the gold mineralisation into areas not previously tested.

Significant results from the December 2002 drilling program include intercepts of:

• 4m @ 2.1 g/t Au,
• 2m @ 3.5 g/t Au,
• 2m @ 4.0 g/t Au,
• 11m @ 1.3 g/t Au.
  

Gold intercepts from the December 2002 program are presented in Table 1, with locations and details of these drill holes set out in Table 2.

The gold resource remains open in all directions, and at depth. The next phase of evaluation of the gold resource is to re-estimate the resource, carry out preliminary mining and metallurgical studies, and in consideration of the gold resources spatial relationship to the copper resource, assess the opportunity to economically mine the gold resource and confirm the amenability to heap leaching.

It is anticipated that the gold resource will increase upon the inclusion of these and other previously unaccounted drilling results, with the upgrade of the resource to be reported once the re-estimation is complete.

The defined oxide copper resource at the 100 % owned White Range Project currently totals 12.6 million tonnes @ 1.2 % copper. The Company reported significant high-grade drilling intercepts from the Greenmount deposit on 14 January 2003, with this deposit, being a key component of the White Range Project.

Yours sincerely,

Andrew Chapman
Chief Executive Officer

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The geological information in this report is based on information compiled by the Company's Senior project Geologist, Mr Phil Frank and the Company's Operations Manager, Mr Bob Dennis both of whom are employees of Matrix Metals Limited. Messrs Frank and Dennis each have a minimum of 5 years experience in estimation, assessment of, and evaluation of Mineral Resources and Ore Reserves, which are relevant to the style of mineralisation under consideration.