development overview The Syama deposit is one of a number of deposits and geochemical anomalies along the Syama thrust zone. Potential for future exploration success within the tenure is considered excellent. The ore body is refractory due to gold being intimately locked in pyrite. In addition the ore has a high organic carbon content (graphite). The graphite redeposits gold from solution thus affecting recoveries in CIL. Because of the graphite and refractory gold, roasting has been used to oxidise the pyrite and liberate the gold for recovery in the CIL circuit. Graphite is destroyed in the process of roasting. Overall gold recoveries of up to 83% have been achieved in operations previously but recent test work demonstrates recoveries in excess of 87% in the revised flow sheet. The revised resources calculated by Resolute in February 2004 amount to 47.8 million tonnes @ 3.0g/t Au for 4.53 million ounces of gold and are summarised by JORC category in the table below. Much of the deposit is categorised as Indicated merely because of drill spacing and additional drilling is required to convert these resources to the measured category. The revised resources are similar to those reported by Randgold although they are not directly comparable due to the use of different modelling techniques, additional drill hole data and a more conservative allocation of mineralisation into the resource categories. The open pit contains reserves of 12.8 million tonnes @ 3.9g/t Au for 1.62 million ounces (using a cut off grade of 1.75g/t). The pit has a strip ratio of 4.7:1.  The bulk of the reserve is currently categorised as probable, but it should be noted that there is historical data from mining and grade control over a vertical depth of 180m that supports the grade reconciliations between the reserve model and mining. Therefore there is a high level of confidence with the probable reserves as currently defined.  It is anticipated that with additional drilling, especially towards the base of the new pit design, that a significant proportion of the reserves will convert to proven reserves and that additional reserves will be defined within the pit. Technical studies undertaken since April 2003 have demonstrated that the Syama Project is viable at current gold prices.  A new proven and probable reserve of 12.8 million tonnes @ 3.9g/t Au for 1.62 million ounces has been defined within a pit 300m deep. The reserves are contained within a total resource of 4.53 million ounces (47.8 million tonnes @ 3.0g/t Au).  The ore body below the pit remains robust with a recent intersection of 105m @ 3.65g/t Au in the Main Zone (between 371m and 476m). This is 400m below surface and approximately 100m below the new pit design.  Geological Resources Reserves Pre-feasibility Results Syama - Insitu Resources as at 30 June 2004 - 1g/t cut off grade (including Reserves) Category Tonnes Grade Ounces Measured 4,151,724 2.9 384,313 Indicated 27,786,610 3.0 2,677,681 Inferred 15,822,176 2.9 1,468,518 47,760,509 3.0 4,530,512 Category Tonnes Grade Ounces Proven 2,240,000 3.6 259,300 Probable 10,560,000 4.0 1,358,000 12,800,000 3.9 1,617,300 RESOLUTE MINING LIMITED 2004 ANNUAL REPORT 14 Syama - Ore Reserves as at 30 June 2004 FIGURE 3 Representative cross-section  through Syama deposit GEOTECHNICAL HOLE Drilled 3rd quarter 2003 Existing Pit Outline SYD-102 30.48m @ 2.4g/t SYD-040 24.96m @ 1.1g/t SYD-128 16m @ 2.2g/t Final Pit Outline Drilled September quarter 2003 100 metres SYD-035 22m @ 1.3g/t SYD-129 27.5m @ 2.1g/t Section 23450mN SYD-108 134m @ 3.4g/t SYD-133 169m @ 2.2g/t SYD-052 116.4m @ 3.2g/t SYD-035 106m @ 5.0g/t SYD-102 94m @ 3.6g/t SYD-040 83.2m @ 3.3g/t SRC-029 83m @ 3.7g/t SYD-002 43.8m @ 1.2g/t SYD-019 19m @ 3.8g/t SYD-135 152m @ 2.6g/t