Fosterville South Exploration Ltd V.FSX

RE:RE:From MD&A -just released

[Torchie1]

The Moormbool project area consists of three granted licenses (EL006280, EL006913, & EL007193) and occurs east of Fosterville within the Melbourne zone and is underlain by Siluro-Devonian rocks. It covers an area between the Redcastle and Graytown goldfields, within which occurs a southeast-striking large regional fault. Due to pervasive shallow alluvial cover, the project area is largely unexplored. Near this regional structure and included within the project area is a magnetic anomaly interpreted to be a small intrusive plug or cupola. Initial soil geochemistry exploration indicates that both the southeast-striking fault zone and the intrusive zone are arsenic mineralized, and therefore potentially gold mineralized. The magnetic anomaly could be an intrusive related gold system similar to Mount Piper, near Broadford. Farther northwest, within the Redcastle goldfield extensive alluvial and hardrock gold mineralization was mined historically along this fault zone. Initial drilling has targeted the southeast striking postulated fault zone and associated magnetic anomalies. Final assay results are pending. Further drilling is proposed in this area.