MOE Moelis Australia Pty Ltd

Moto Goldmines Limited (TSX:MGL)(ASX:MOE) - HIGHLIGHTS -0- *T MOTO GOLD PROJECT - Revised independent resource estimate of: - Indicated resources - 8.23 million tonnes at 2.6 g/t Au for 0.70 million ounces of gold; and - Inferred resources - 89.23 million tonnes at 2.6 g/t Au for 7.33 million ounces of gold. - Reconnaissance and infill drilling during the quarter continued to identify significant gold mineralisation. - Infill drilling programmes, designed to upgrade the resources from the inferred to the indicated category, at a number of deposits completed. A resource upgrade is planned for November 2005. - Pre-feasibility work continued during the quarter. Preliminary study results planned for release in November 2005. - Appointment of Sam Jonah KBE as Chairman and Walter Kansteiner, David Hodgson and Dr Jeff O'Leary as directors of the Company. - Completion of placement of 8 million shares at C$2.70 each to raise C$21.6 million. *T DEMOCRATIC REPUBLIC OF CONGO - MOTO GOLD PROJECT The Company's principal focus during the quarter ended 30 September 2005 was to progress the Moto Gold Project in the north-east of the Democratic Republic of Congo from the exploration stage to project feasibility and development. The Company continued to employ 4 drill rigs (one RC and three diamond) at the Moto site, with the focus predominantly on infill drilling designed to upgrade the resources from the inferred to the indicated category. Cube Consulting completed an updated independent resource estimate on August 9, 2005 (details of which are summarised below), and have been appointed to review the potential for an operation based on a number of the ore bodies at the Moto Gold project. Preliminary study results are planned for release in November 2005. Activities in relation to project feasibility and development are ongoing. Reports on the exploration activities during the quarter have previously been released on July 6, 2005 "Exploration Update - Identification of further significant mineralisation at Karagba", July 19, 2005 "Drilling Confirms Significant Potential at Sessenge Prospect", August 24, 2005 "Identification of further significant mineralisation at Karagba and Kombokolo", and September 22, 2005 "Exploration Update". The details reported in these releases have not been repeated in the following report, but in summary the reconnaissance and infill drilling completed during the quarter continued to identify significant gold mineralisation. Resource Estimate for Moto Gold Project Deposits In August 2005 independent consultants Cube Consulting estimated the following resources at a nominal 1 /gt Au lower cutoff: -0- *T --------------------------------------------------------------------- Deposit Indicated Inferred ------------------------------------------------------ Tonnes Au Tonnes Au Mt Au g/t '000Oz Mt Au g/t '000Oz --------------------------------------------------------------------- Pakaka 8.23 2.6 701 11.46 2.2 814 Gorumbwa 8.55 6.4 1,750 Kibali 22.60 2.0 1,417 Mengu Hill 6.10 3.6 696 Mengu Village 1.83 1.6 91 Karagba 9.29 3.1 914 Megi 5.21 1.9 312 Marakeke 1.66 1.4 74 Kombokolo 1.41 2.4 110 Sessenge 6.69 1.8 381 Ndala 0.49 4.0 62 Pamao 13.94 1.6 708 --------------------------------------------------------------------- TOTAL 8.23 2.6 701 89.23 2.6 7,329 --------------------------------------------------------------------- *T Upgrading of confidence in resources Upon completion of the above resource estimate extensive infill drilling programmes at Pakaka, Karagba, Gorumbwa, Sessenge, Kombokolo and Mengu Hill, designed to upgrade the resources from the inferred to the indicated category, were undertaken. Except at Karagba and Gorumbwa, these programmes have now been completed. A resource upgrade for the Pakaka, Sessenge, Kombokolo and Mengu Hill deposits is planned for November. Drilling at Karagba is continuing to test extensions to and the continuity of the mineralised zone. The drilling has defined an interpreted northeast plunging mineralised zone that has a strike length of greater than 300m (open to the southeast), a thickness of up to 100m and a potential down plunge length of over 500m. A further resource upgrade is planned for later in the calendar year once the current programme of infill and extension drilling is complete. At Gorumbwa drill holes have been designed to test both the upper and main lodes of the Gorumbwa deposit to enable a comparison with the historical drill results. A revised resource upgrade is planned for later in the calendar year. Prefeasibility Work Activities in relation to project feasibility and development are ongoing and the Company is continuing to work towards completion of pre-feasibility work by mid 2006 and completion of a bankable feasibility study by early 2007. Soil Geochemical Programmes Results of the soil sampling has been received on both the Mengu Hill to Kalimva areas and Abimva. Between Mengu Hill and Kalimva the soil sampling has identified 2 gold in soil anomalies, Mofu (500m x 150m) to the south and Oere (500m X 100m) to the north. Both are defined by results greater than 125ppb Au. Oere lies within a 2km long NNE trending gold in soil anomaly (+25ppb Au) that is coincident with an interpreted NNE trending structure which hosts the mineralisation previously exploited by the Belgians at Kalimva. RC drill programmes designed to test these anomalies will commence in the December quarter. The soil sampling at Abimva will require infill to better define the anomalies. Infill sampling results from the Rambi gold-in-soil anomalies located 45kms east of Pakaka led to a better de finition of the trends. The initial soil sampling programme at the Kalimva West Project area located 14km north northwest of Pakaka has been completed and results are awaited. CORPORATE During the quarter a number of significant appointments were made to the board of directors. Sam Jonah KBE was appointed Chairman on August 2, 2005. Sir Sam is internationally recognized as one of Africa's leading businessmen. He is also Non-Executive President of AngloGold Ashanti Limited, which is one of the world's largest gold mining companies. On August 18 Walter Kansteiner, David Hodgson and Dr Jeff O'Leary joined the Board in the position of Non-Executive Directors. Reg Gillard and Patrick Flint retired as directors of the Company. The Board believes the experience, expertise and commitment of the new appointments will greatly assist the Company in achieving its goal of advancing the Moto Gold project through to completion of a feasibility study as quickly as possible. In August the Company announced that it has completed its private placement for the issue of 8 million Shares (and 4 million warrants) at a price of C$2.70 each, for gross proceeds of C$21.6 million. A total of C$8.64 million was received in August, with a further C$12.96 million being received in October 2005 (following receipt of approval of the placement at a general meeting of shareholders held in October 2005). At 30 September 2005 the Company had cash at bank of AU$11.0 million (with a further C$12.96 million, less broker fees, being received in October pursuant to the placement). Company website: www.motogoldmines.com Additional Notes: Scientific or technical information in this news release has been prepared under the supervision of Greg Smith, Exploration Manager of the Company and a qualified person under National Instrument 43-101 and a member of the Australasian Institute of Mining and Metallurgy (AusIMM). Greg Smith has sufficient experience which is relevant to the style of mineralisation under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" (the JORC Code). The Information in this report that relates to Mineral Resources is based on a resource estimate compiled by Ted Coupland who is a member of the Australasian Institute of Mining and Metallurgy (AusIMM), Mineral Industry Consultants Association (MICA) and is a Chartered Professional (Geology), and a qualified person under National Instrument 43-101. Ted Coupland is a director of Cube Consulting Pty Ltd. Ted Coupland has sufficient experience which is relevant to gold mineralisation and resource estimation to qualify as a competent Person as defined in the December 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" (the JORC Code). Ted Coupland consents to the inclusion in this report of the Information, in the form and context in which it appears. Caution Regarding Forward Looking Statements: Statements regarding the Company's plans with respect to developing the Moto Gold Project are forward-looking. There can be no assurance that any mineralisation will be proven to be economic, that anticipated metallurgical recoveries will be achieved, that future evaluation work will confirm the viability of deposits identified with the project or that future required regulatory approvals will be obtained. Moto Goldmines Limited (TSX:MGL) (ASX.:MOE)