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Resource Statement

Table 1

The inferred mineral resource reported by Synergy in March 2009 was:

Gold

Location Note Tonnes Grade Au g/t Oz Gold
Glen Wills 1 338 200 7.04 76 550
Glen Wills tailings 2 112 000 2.60 9 350
Sunnyside 3 75 600 7.14 17 350
Totals . 525 800 6.11 103 250

Silver

Location Note Tonnes Grade Ag g/t Oz Silver
Glen Wills 4 338 200 10.86 118 100
Totals . 338 200 10.86 118 100

Note 1 – The Glen Wills resource is based on drilling to January 2009 and the modelling shows that the deposit is still open at depth and to the north.

Note 2 – The Glen Wills tailings consist of the sands from the Maude battery. The resource calculations for the Glen Wills sands were initially undertaken in 1990 and have been classified as acceptable at the confidence level of Inferred Mineral Resource.

Note 3 – The Sunnyside resource is based on drilling of the Central Line (United Brothers) to September 2008. The modelling shows that the Central Line is still open at depth and to the south. Additional drilling will be required on the Eastern Line (Antiope) to establish a resource on that line. The Western Line has not yet been drilled.

Note 4 – A maiden Inferred Mineral resource for silver has been established at Glen Wills.

The geological information contained within this report was compiled by Mr Peter de Vries, a consulting geologist, on behalf of Synergy Metals Ltd. Mr de Vries is a member of the Australasian Institute of Mining and Metallurgy and is a Competent Person as defined by the 2004 JORC Code, having more than five years experience which is relevant to the style of mineralisation and type of deposit described in the report, and to the activity for which he is accepting responsibility. Mr de Vries consents to the publishing of the information in this report in the form and context in which it appears.

Table 2

The development potential derived by Coffey Mining Pty Ltd from their review in April 2007 of the previously published findings from exploration work at the Glen Wills and the Sunnyside sites (and which includes the inferred mineral resource shown in Table 1), was:

Location Tonnes Grade Au g/t Oz Gold
Glen Wills – South and Central 350 000 6.6 74 000
Glen Wills – Other 30 000 3.8 4 000
Sunnyside 160 000 6.7 32 000
Total 540 000 6.5 110 000

This development potential was estimated from lode shapes defined by Synergy based on additional drilling since the previously reported results were first published and which were significantly larger than the lode shapes used for estimating those prior published results.

Table 3

The mineral exploration potential assessed by Coffey Mining Pty Ltd in April 2007 for the Glen Wills and Sunnyside gold sites (and which includes the development potential of 110,000 ounces of gold shown in Table 2), was:

Location Tonnes Oz Gold at 7g/t Oz Gold at 10g/t Oz Gold at 15g/t
Glen Wills – South and Central 830 000 190 000 270 000 400 000
Glen Wills – Other 60 000 15 000 20 000 30 000
Sunnyside 610 000 135 000 190 000 290 000
Totals 1 500 000 340 000 480 000 720 000

In accordance with the ASX listing rules, the Directors note that the estimates of mineral exploration potential shown in tables 2 and 3 above which are in excess of the Inferred Mineral Resource shown in table 1 are based on tonnes and grades which are conceptual in nature and do not represent any form of mineral resource estimate since at this stage there has been insufficient exploration work done on the mineral exploration potential to be able to define a mineral resource of that size compliant with the JORC Code guidelines and it is uncertain whether further exploration work will result in the determination of such a mineral resource.

Assumptions:

  • The target grade of 7g/t used the results of all drilling within the wireframes which defined the ore lodes of the geological model.
  • The target grade of 10g/t used the results of only those samples where grades were greater than 3g/t within the wireframes which defined the ore lodes of the geological model.
  • The target grade of 15g/t represented the lower end of the historic grades achieved from the results based on historic production data for the project area.