During the second quarterly reporting period planning and organizational activities within the KP commenced on 18 October 1996.

Following receipt of access authorities from the local government areas of Bandung, Cianjur, and Garut, the field team was mobilised and a training program was undertaken to establish the procedures and practices required for geochemical sampling, surveying, mapping and data recording.

The regional phase of stage 1 exploration program was initiated in the north-east sector of the KP from base camp established at the De Wata tea plantation. The regional activities included close-spaced reconnaissance geochemical drainage sampling, outcrop sampling and both 1:5000 and 1:2500 scale reconnaissance geological mapping. This program was aimed at evaluating the significance of 4 gold anomalous drainage basins established by ANTAM and the potential of the geological environment hosting the 3 gold-bearing quartz vein systems in Cibadak-Tutugan area also identified by ANTAM during further evaluate areas where significant hydrothermal alteration was identified by mapping.

Due to the fact that majority of samples submitted during the quarter have yet to be analyzed, no information is available regarding significant results. The mapping and sampling programmes have given initial encouragement in that the Cibadak/Tutugan area exhibits potential for hosting a possible low sulphidation epithermal quartz system that may contain zones of economic mineralisation.

Exploration expenditure incurred during the second quarterly period associated with the project establishment activities amounts to US$178,496 (A$228,841).