Outback Goldfields Corp. provided an update from its reconnaissance-style, air-core drill program at its Yeungroon gold project, central Victoria, Australia. The purpose of the wide-spaced, top of bedrock drilling was to expand on, and sample fresh bedrock below a broad and open-ended, 3 kilometre long, near-surface pathfinder element anomaly.

Highlights: The company's broad gold-arsenic anomaly in bedrock samples over 3-kilometre strike length: Drilling across the O'Connors geophysical trend revealed broad zones of strongly anomalous arsenic and gold comparable to that observed in alteration halos proximal to other central Victorian gold-bearing quartz reefs. Wide-spaced top-of-bedrock drilling effective first step: Grid-based, shallow drilling across numerous blind and concealed geophysical targets proved to be a key and cost-effective first step at generating new drill targets. Anomalies are open along strike: Encouraging gold results at the northern and southern ends of the anomalies supports the potential for further extensions along strike.

The company are very pleased with exploration campaign and results at O'Connors. The widspaced, air-cocore drill program was designed to explore below young cover rocks and sample the top of bedrock below cover. These analyses represent only 60% of total metres drilled therefore additional gold analyses from other holes are warranted.

The program was successful at defining a new broad zone of gold anomalism associated with a large-scale, open-ended bedrock anomaly. The coincident gold and arsenic anomalies are spatially associated with the north-northeast trending O'Connors fault and related splay faults. The Geological Survey of Victoria published a study in 2008 focused on the geochemistry of host rocks and alteration halos surrounding central Victorian gold deposits.

The study inferred that low-grade gold halos may extend between 30 and 90 metres from primary mineralized structures (e.g., quartz reefs) with grade thresholds between 10 ppb and 100 ppb gold (Arne et al., 2008). The peak gold values from the O'Connors air-core drill program of up to 0.43 g/t (432 ppb) Au and 0.27 g/t (270 ppb) Au (Figures 1 and 2) are therefore considered highly anomalous and represent immediate targets to systematically drill test. The O'Connors gold-arsenic anomaly extends for over 3 kilometres and remains open along strike.

This included sample lithologies, colour, quartz veining and mineral observations, and was completed concurrent with sampling. All samples were transported from the drill site to the Company's exploration office in Ballarat by Outback.