Australia
Junction Reefs, NSW Gold, copper
Climax interest: 20.92%
Operator: Cadia Holdings Pty Limited (Newcrest) has earnt a 51% and controlling interest

The Junction Reefs property is adjacent to, and east of Newcrest's Cadia and Ridgeway gold, copper mining operations, near Orange, NSW. Operators continue drilling and have encountered broad mineralised zones of sub-economic copper/gold mineralization.

Newcrest gave notice that at 30 September 2005 it had incurred expenditure of $14 million in accordance with the Second Junction Reefs Joint Venture Agreement and earned a 51% participating interest. Climax’s interest was correspondingly reduced to 20.92%.

Climax has given notice to the Operator that it will not be contributing further in respect of its participating interest. As a consequence of this election Climax’s participating interest will be further diluted as a direct proportion to the expenditure it would be obliged to fund as a participant to the total joint venture expenditure, taking past expenditures into account.