On 25 July 2007 Buka Gold announced significant exploration results from initial work on the Mt Scotchy prospect just 25km from the Gympie operations.

Surface sampling has identified a mineralised zone in andesitic volcanics that returned rock chip assay results of up to 28.0 g/t Au, 769 g/t Ag, 10.3% Pb, 0.53% Zn, 0.18% Cu, 9.5% As and 0.33% Sb. The mean values within the mineralised zone over an initial 300 metre strike length (26 rock chip samples) from this initial sampling data set are 7.8 g/t Au, 162 g/t Ag, 3.9% Pb, 0.15% Zn, 0.04% Cu, 4.1% As and 0.10% Sb.

The mineralised zone is traceable as boulders in soil and localised sub-outcrop with an overall strike length of more than 1 kilometre. Additional sampling results are awaited and further sampling is in progress to identify possible strike extensions. The rock types that define the mineralised zone in the surface weathering layer consist of veined and brecciated andesitic volcanics, ranging from highly leached and clay-altered to limonitic and gossan-like, to massive limonite/goethite resembling true gossans. Remnant textures in both the leached and altered volcanics and gossanous material show that the mineralised zone is characterised by abundant pyrite.

The width and overall geometry of the mineralised zone is uncertain due to the poor bedrock exposure and the effects of soil creep, but in the central portion where most chip sampling has been concentrated to date, a zone width of several metres has been estimated.

At this early stage, the style of mineralisation remains conjectural. Some characteristics of an epithermal style are evident, eg small vugs and cavities lined with crystalline quartz, and the intense bleaching of the volcanic rock fragments. A strong planar fabric is also prominent in places, with multiple episodes of small scale quartz and carbonate veining disrupted by later movement suggesting reactivation of a mineralised shear zone.

Follow up trenching to bedrock is being given high priority to allow more detailed sampling and mapping of the zone. This will provide more detailed information on grades and overall geometry as a prelude to follow up drilling.

As anticipated, the June 2007 quarter saw the last batch of ore processed from previously identified resources in the Monkland mine. During the period 6,066 tonnes were milled (previous quarter 9,613 tonnes) at an average recovered grade of 6.58 g/t Au (7.04 g/t Au) to produce 1,284 ounces Au (2,174 ounces). Clean up around and within the mill contributed a further 1,803 ounces during this campaign.

Gold sales of 3,488 ounces (1,799 ounces) were recorded in the June 2007 quarter at an average price of $797 per ounce ($831/ounce). Cash costs were $580 per ounce ($1,075/oz). Overall this generated an operating cash surplus of $0.75m and cash reserves stood at $4.05m at the end of the quarter.

Remnant mining continues on a small scale whilst exploration diamond drilling of in mine targets continues.

Click here for the full report for the fourth quarter.