AVOCA RESOURCES LTD “The Rigs are Rattling in South Australia” Sydney Mining Club 4 March 2004

Who is Avoca? What got Avoca started in SA? How do you cut back over 16,000km 2 to meaningful drill targets? What has Avoca achieved in SA, and where to in 2004? Summary Presentation Outline.

Avoca is an aggressive junior explorer…. Diamond Drilling1,397 metres RC Drilling6,064 metres Aircore Drilling14,205 metres RAB Drilling24,143 metres Auger Drilling5,815 holes Soil Sampling6,444 samples Gravity Surveys4,583 stations Surface EM Surveys98 line km …..all since listing in April 2002.

.. with a quality portfolio in two of Australia’s highest endowed provinces… Over 10,000km 2 in Australia’s richest copper belt, being the Olympic Copper-Gold Province in SA, and Almost 8,000km 2 in the Eastern Goldfields of WA….mostly in free-carried JVs with Gold Fields, Placer Dome, Harmony, Teck Cominco, Sons of Gwalia and Mines & Resources.

Avoca corporate overview. ASX CodeAVO Issued Securities 64 m shares (58m quoted) 9.8m unlisted options Market Capitalisation$10m ($3m in cash) Major Shareholders - Gold Fields (11%) (Top 20 own 44%) - Kurana (7%) Staffing MD, EM, SG,TGM, Ac(pt)

Presentation Outline.

Recognising an opportunity and moving very fast….. Prominent Hill: 2% Cu announced

..to secure the major position in Australia’s richest copper belt. Within 24 hours of the Prominent Hill announcement, Avoca became the dominant lease- holder with 16,000km 2 in what later became known as Olympic Copper- Gold Province. Applications by fax and a credit card bill of ~$15K…..

Presentation Outline.

…. smart geochemistry and geophysics. Northern segment of holding was principally geochemistry driven. -utilising innovative geochemical techniques able to “see” through the rocks which bury mineralisation.

…. smart geochemistry and geophysics. Southern segment of holding was geophysically driven. combination of magnetic and gravity surveys collected both by government agencies and Avoca.

An example of innovative geochemistry. Gravity Magnetics (regional only) 1979 drill hole intersected 0.5% Cu at 280m depth. Avoca collected “partial leach geochemistry” over drill hole to see if technique can “see through cover rocks.”

Geochemistry over drill hole containing buried mineralisation shows strong surface anomaly Drill hole location

..Avoca then completed extensive geochemical coverage to test Nth block.  In excess of 11,000km 2 surveyed. One sample collected every 4km.  Four areas showed coherent and strongly anomalous copper-gold- REE anomalism on surface at: Myall Hill, Shore Hill, Pernatty and Reordan.  Provides for ground rationalisation strategy.

.....over ground like this, sometimes!

The application of geophysics in the search for Cu-Au. Magnetics proves very useful for identifying major faults that control location of zones of rock that may host mineralisation. - eg Pine Point Fault and Port Julia prospect on the Yorke Peninsula Parara Mine Port Julia target Hillside Mine

The application of geophysics in the search for copper-gold. - Both the Ernest Henry deposit and Avoca’s Glensea Prospect (east coast of Eyre Peninsula) show similar geophysical features: large magnetic complex against non-magnetic granite.

Presentation Outline.

Olympic Dam style breccia at Port Julia PJD1 First Avoca drill hole into 6km long gravity anomaly intersects Olympic Dam- style breccia. *First occurrence on Yorke P. Second hole commenced yesterday, 2.5km from first hole.

PJD m: Chalcopyrite in haematitic breccia

PJD m: Red haematite breccia clasts with steely haematite matrix

Drilling PJD1 at Port Julia, June 2003

MOORE GEOPHYSICS New work at Port Julia involves 3D imagery of Avoca’s gravity data…

MOORE GEOPHYSICS..and calculating what type of dense body may give rise to the Port Julia gravity anomaly…

MOORE GEOPHYSICS PJD1 drilled in non- optimum location. 1km Here higher density “cores” to the source body are seen as green, and are targets for current drill testing. PJD1 PJD2

Is Glensea another Moonta-style field? Avoca drills the only 3 holes into 80km 2 magnetic anomaly. Discovers high grade copper-gold veins in 3 holes over 6km 2. Large TEM program to identify large massive sulphide position completed. Drilling to re- commence in March Qtr Glensea

Glensea discovery – another Moonta field? Avoca’s 3 holes are the only holes ever drilled into the magnetic anomaly

COD1, m Massive chalcopyrite with quartz. 3.25% Cu, 0.24 g/t Au, 2.4 g/t Ag

Drilling COD1 at Glensea, April-May 2003

Wandearah is a very large and highly dense body.. Drill targets defined by two discrete 5km 2 gravity anomalies. North target coincident with highly anomalous geochemistry. Targets not previously drilled. Avoca to drill in March Wandearah

..with two discrete gravity anomalies (drill targets). Two discrete anomalies off main anomaly axis – defined by 1800 station gravity survey completed by Avoca. Very large target sizes (5km 2 )

MOORE GEOPHYSICS New work at Wandearah shows 3D image of Avoca’s gravity data. OLD NEW

MOORE GEOPHYSICS Dense body at depth calculated as being responsible for gravity anomaly. Note this feature

Discrete gravity anomaly

Copper anomaly (20x background) Geochemistry overlying gravity.

REE anomaly (50x background) Geochemistry overlying gravity.

DRILL TEST – March 2004 Uranium anomaly (50x background) Geochemistry overlying gravity.

Summary Avoca is an aggressive and fast moving junior explorer that acquired the major holding of Australia’s richest copper belt following MNR announcement. Avoca’s initial holding of in excess of 16,000km 2 was reduced using results from a combination of innovative geochemistry and geophysical techniques. Avoca has discovered a new high grade copper-gold Moonta style field at Glensea.

Summary cont’d. Avoca’s first drill hole into Port Julia intersected Olympic Dam style haematite breccias. First observation on YP. Wandearah exhibits excellent geochemical and geophysical properties consistent with buried mineralisation. All 3 copper-gold targets to be drill tested over next 2-3 months.