CB: Falklands Gold and Minerals Ltd. Started drilling here on the 4^th of March. So far more than 600 metres of core have been produce from a target near to Goose Green. The first results are expected to be compiled within two months. During March, refitting an the existing building as the core shed and sample handling facility continues, with a concrete floor being laid in the main facility. The first stage of the core storage rack is being built and the core pull being commissioned. Last week the Company’s recently appointed Chairman, Richard Linnell (RL), was here on his first site visit. I asked him how it was going.

RL: It’s actually a treat being here for my first visit and it isn’t really what I expected. But it’s been a very pleasant surprise. I think we will have to go back a long time in history to see the real origins of this project. South America, Africa, Australia and Antarctica and the Falklands were part of a super continent in the Southern Hemisphere called Gondwana Land. That broke up about 200 Million Years ago. And, at the point of break-up the Falklands were, in fact, just off the southeast coast of South Africa. They drifted from there and turned 180 degrees from their current position now. During that drifting it created the opportunity for mineralisation to occur in the rock. I think that geological event was recognised in the ‘50s. But during the ‘90s some quite creative people who worked for Cambridge thought that they should have a look in the Falklands to see if there were any parallels with the South African mineralisation as diamonds and gold occur in South Africa. At that stage they recruited Derek Reeves and they sent him off basically with a bucket and spade to sample all the streams in the Islands looking for the heavy minerals associated with diamonds. Derek started this and very diligently worked his way through the rivers and streams. In his collection of heavy minerals, which are the ones that we look for, he also found some traces of Gold. And, he found them quite extensively over the Islands. At that stage, the programme was extended to include Gold as a serious target in the programme. It took him a couple of years to work his way through that. And, when he finished, there were enough showings of Gold in the rivers to warrant some follow-up. It’s actually quite difficult to go through the peat to get to the Gold. So the shareholders did some deep thinking and it was too good an opportunity to waste. They went to London and raised approximately $1Million to do some airborne geophysics. And that was conducted during last year. What was rather pleasing out of that is that the airborne geophysics threw out some anomalies, which tied in with the work that Derek had done in the streams. It highlighted 23 areas, which warranted further investigation and some ground effort from that have taken those anomalies to the point that they should be drilled. GML didn’t have any of that money then so the shareholders decided to go to Global Petroleum, Cambridge and FIC and they decided to go to the London Stock Market to raise the money. And, at that stage I became involved. I had a career in Geology going back to the ‘70s but mostly with the major companies and more recently with BHP and they asked me to come alongside and see if I could assist them in raising the money and take over the overall direction from what had been a bit of a hobby but now was going to be a serious exploration programme. I thought it was quite exciting. I enjoyed the South African connection and I was stimulated by the geological concept and I liked the people that I was working with. To me that was a great idea and I joined and we were able to raise enough money to start a drilling programme, which Derek has commissioned out here now.

CB: What do you actually do when it comes to Company life on a daily basis, then?

RL: What I do is provide a technical sounding for Derek because I have been around in the Geological world before. I take an overall view of the strategy, I am responsible for the fundraising and the overall direction of the Company and I keep the individuals well briefed about what’s happening. And, I make sure that there’s good governance. Derek is, in fact, the Chief Executive on the Job. Derek does the work. We’ve got the 23 anomalies we want to follow up on. A lot of them are in the vicinity of Goose Green. So, he’s established a base camp there where we have a sample preparation laboratory that’s nearly complete and he’s got two drills. One has already started. The other one will start in the next month and Derek is putting 200 metre holes onto these anomalies so we can establish what’s laying underneath the peat. In that programme we do about 1,000 metres a month. The programme to get through those 23 anomalies is going to take plus or minus two years.

CB: Has anything been discovered so far with regards to the drilling?

RL: We have done five holes and 700 metres so far. We tackled, for commissioning purposes the nearest anomaly to Goose Green so we can get our operating practices properly jacked up. We have identified what was the cause of the anomaly but it’s certainly not a gold mine. It’s very highly magnetic rock, an intrusive rock but of no economic value. But it has given us enough information for us to go back and reassess the other anomalies. We will be refining our lines as we go along. All the knowledge we learn is re-fed back and we refine our approach.

CB: What do you feel the benefit is of you actually coming here and going to the site?

RL: It’s very difficult to understand the difficulties of any operating conditions. It’s very difficult with a knowledge of Africa to sit in judgment on field work in the Falklands. It actually doesn’t work. And, it was important to me to come and see it once they started drilling and see the sorts of difficulties they experience so I could manage the response to those difficulties. The other thing is that I trained as a Geologist in what was Rhodesia and it was actually important that Derek, who was trained as a Geologist in Australia, and I correlated our understanding of the kinds of rocks and results that he was likely to have so that our communications were clear. He has to work hard. My other Director should come out here and visit the site, so we actually have to make sure that we don’t dilute his time. So, I will come here once a year and there will be three other visits of Directors during the year so that they can keep a broad brief without being diluted at this time.

CB: What can people expect in the future, then?

RL: What would be great is if Derek phones and says that he found some native gold in the core. He doesn’t believe that, nor do I. But what we can expect is that Derek will get himself up to operational speed probably during the course of next month. He will be producing anything between 1,000 to 1,500 metres of core a month and we will be drilling through the anomalies over the next two years, so It will be a lot more of the same for the next two years, once he’s up to speed. If we are lucky and somewhere in that two-year period, Derek intercepts something that is interesting, he will stop moving on to the other areas and for a short period he will concentrate on what appears to be interesting. And, he will put two or three more holes in it so we will have a better understanding of what it is he’s found. At that stage, we will take stock and decide whether it’s that interesting that we get another drill just to concentrate on that anomaly or whether we can cope with the drills we’ve got and quickly put more in before we continue. So we can measure the quality of what he has found at that stage and make an equivalent decision. Lets assume that it’s actually attractive and we get a new drill. That will probably take two years in itself, to assist the magnitude of it if it’s an attractive occurrence. But it still will be two years postponing something exciting before anything different happens other than holes. And, again, that will probably take a, what we call, pre-feasibility stage of the project. At that stage, we will again take stock and decide whether it’s something we wish to develop ourselves or that we should go and bring in people who are specialists in taking these feasibility studies. So we may approach BHP Bulletin, who are people who would introduce the project to take it through to production if we find something.

CB: With regard to the schedule of events, you are working in the Goose Green area at the moment. What will be the next place?

RL: I think Derek this year will be specifically concentrating on East Falkland. He will be doing some ground geophysics on West Falkland during the year but he will be defining future drill sites in the west for next year. But he’s got more than enough to take his drills through this year.

CB: How is the Company going to take responsibility for environmental issues that may arise?

RL: I think we have had quite a lot of interaction on the Islands, here and Derek is very conscious of the fact that we have a fragile ecology here. So, the drilling activities are being very carefully monitored and will have a minimal impact. And, the rehabilitation after each drill hole is complete is pretty rigorous and after a drill site is cleaned up all you should see is a white pipe sticking up out of the ground representing where the hole exists. Further down the track, in the last five years there has been quite a seed change in the attitude of major companies and in the mining and investing public to the affect on the environment and mining and there has been a much better coming together of environmental people and miners. And we had a conference in Johannesburg a few years ago and it showed that, in fact the median line is getting better. We won’t say it is with everybody but certainly it’s virtually impossible to get money to do any development at all if you are not very environmentally aware.

In closing this for you, what I’d like to say is that my experience in working on exploration projects was mostly in Africa - in the Congo and Algeria and West Africa - Sometimes in Sudan and Eritrea. And, one of the really remarkable things here is the really good and professional co-operation we’ve had from the authorities and people who are responsible for overseeing our activities and the really good approach we have had from the community. We feel very much a part of it. In that sense, Derek has integrated himself into the community and that does help. I have been lead to feel extremely welcome here and that’s great - perfect. Thank you very much.

(100X Transcription Service)

Section 2:

BUSINESS NEWS FROM ST. HELENA

Upper Jamestown under evacuation

Paul George

Last Friday, residents who reside in the upper part of town had to be evacuated. And just two days ago, they were asked to leave their homes again, as rocks continue to be a threat!

Following a rock fall last Friday evening; residents who lived in the vicinity of the Roman Catholic Church and Mc Knight’s shop were evacuated. They were given the option of moving to the Salvation Army Hall if friends or family could not accommodate them. Evacuation is never easy and certainly frustrating, but emergency services will do whatever is required to make the public safe.

Just two days ago, emergency services came to the conclusion that yet another evacuation was necessary as a large quantity of rocks, which were being monitored above the China Lane area, were deemed as “unstable” by the rock guards. People from the area have been evacuated from their homes and the rock-fall operation will hopefully commence today. The PW&SD are planning to set-up 20ft cargo containers on the main road. This will hopefully protect people’s homes that are in line with the rock-fall. Traffic on the Ladder Hill road will diverted to the Shy Road. PW&SD are not certain how long the operation will last.

Last Friday’s rock-fall was small, but still very frightening and frustrating for those who live in the China Lane area. Mrs Olive Brown, who resides at Palm Villa- upper Jamestown, notified the Police last Friday as her neighbor, Mrs Olive Constantine, had informed her of a rock that had leapt over her home and then smashed into Palm Villa’s wall pillar! Mrs Constantine’s home is on the other side of the street, opposite to Mrs Brown. Mrs. Constantine says that she was in her house when she heard a loud crashing noise followed by several thuds on the roof of her house.

Police responded immediately and closed the road from St. John’s flats (upper Jamestown) down to Barracks Square. Vehicular traffic and pedestrians traveling on the Ladder Hill road were allowed access in and out off Jamestown via the Shy Road. The evacuation ended around 10pm and it was decided that an assessment of the rock fall would be carried out at first light.

The team of rock guards went up the hill at first light to try and ascertain where the rock or rocks had actually rolled from the evening before. During the sweeping process, they discovered another batch of unstable rocks, which they successfully brought down. Mr. Robert Ellick from the PW&SD estimated around 6 tonnes of rock was brought down, with minimum damage caused to property. No one was injured and the residents were allowed to return to their homes around 2pm Saturday afternoon.

Section 3

ASTOR: The Astor, the last cruise ship this season, is calling into Stanley on Saturday from 0700 to 1400. On Friday the Astor called in at WestPoint Island with 475 passengers.

FINN covered the printing service announcement as a news item in News Direct.

Section 4:

FIBS NEWS DIRECT: 15 APRIL 2005

BRIZE NORTON PROTEST DELAYS AIRBRIDGE:

A northbound flight has been delayed next weekend due to anti war protestors. The demonstration is being held at Brize Norton on the 23^rd and 24^th of April and means the scheduled airbridge flight will now leave MPA a day late. The 747 were due to leave Mt. Pleasant on Saturday, 23^rd but it will now be leaving on Sunday, 24^th. Check in for Stanley based passengers on Sunday, 24^th is between 0700 and 0800 and the flight is due to leave at 1000.

TOURISM REP AT SEATRADE CONFERENCE:

A Falkland Islands Tourist Board rep has recently attended the Sea Trade Cruise Shipping Convention. Tourism Development Co-ordinator, Margaret Williams (MW), went to the conference, which was held in Miami. I asked her what it involved.

MW: It’s the largest international exhibition and conference serving the cruise industry. Every year they go to Miami because that’s the largest destination for cruise ships out of America and this year, there were 950 exhibitors from approximately 100 countries. So, you have cruise industry executives, tour operators and suppliers. They all get together to focus on how the previous year has gone and to look forward to the next year of operating.

YACHTING COUPLE BLOWN TO THE FALKLANDS:

A couple who live in Bermuda for six months a year and travel the world by yacht the rest of the time are here at the moment. I asked Betsy Bailey (BB) why they decided to stop in the Falklands.

BB: We got blown in here because of a gale. We originally were going to come to the Falklands from Ushuaia as we headed north but the time was getting too late so we decided we would head straight to Mar Del Plata and the wind gods decided that the Falklands was the best place to come.

SF: What are your plans as you pass through the Falklands? Where are you heading?

BB: We are heading back to Bermuda, which is our home. This year we are going as far as Perryopolis in Uruguay. We are going to leave the Falklands and hope to get to Mar Del Plata and then we will go up to Uruguay and leave the boat there for the winter and go back home to Bermuda to work for four or five months and then come back and then start heading north.

SF: How many years have you been travelling on the yacht?

BB: For the last five years. We bought our present boat in New Zealand in 1998. Then, in 2000, we came to New Zealand because my husband wanted to be there for the Americas Cup yacht race. We knew we didn’t have enough time to sail there so we bought a boat there. And, we spent a couple of years there. I went back to university and then for one half year I would be in university and the other half we went to the Pacific Islands. And, then we left there in 2002 and headed to Alaska.

SF: And, how have you enjoyed the Falklands so far?

BB: It’s been really great. We have been really impressed at how great the visitor’s centre has been. We took a fair amount of water onboard and we had wet carpets and a wet boat and they help facilitate us getting dried out. There have been lots of other helpful people. The Aldridge family are known by friends of ours overseas so they gave us their address. We tracked them down and they have provided us with nice hot baths and clean laundry. The Malvina House Hotel has been very good and we have enjoyed a meal at the Brasserie and at the Globe. They were so helpful and Paul Ellis helped us out and hopefully we are going to have a Falkland Islander on the crew. Russell Evans is going to sail with us to Mar del Plata.

COURT NEWS:

Four applications for extensions to opening hours went before the Licensing Justices this morning. Terry Clifton was granted an extension at the Narrows Bar on 30^th of April for a 60^th Birthday party and on the 2^nd and 21^st for weddings and applied for extended opening on the 21^st of July for the Farmers Ball. Dennis Whitney was granted an occasional licence for the sheep show at Fitzroy Shearing Shed on Saturday and Gerald Cheek was granted an occasional licence for the FIDF Drill Hall for the Rifle Association prize giving. Anna King was successful in applying for a protection order for the Waterfront. And Granaldo Echiban Villion Corella had an application for a protection order for Ronokes adjourned to let him get a copy of the licensing laws in Spanish.

DINNER DANCE:

The Museum and National Trust will be hosting a dinner dance with a band next week. Museum manager, Leona Roberts (LR) tells us more.

LR: We, just in the last few days, found out the swing jazz section of the band that are coming down to parade for the Queen’s Birthday are going to play for us. This is going to be on the night before the Queen’s Birthday. Wednesday the 20^th we are going to have a dinner dance.

CB: Where is it going to be happening and how much will it cost?

LR: It will be in the FIDF Hall and it will be £15.00 a ticket. There will be a bottle of wine on each table courtesy of the Seafish Chandlary.

CB: What about the catering?

LR: That’s being done by Brian from the Narrows. He did catering for us last year and did a great job. I suppose people will remember last years dance. The band was fantastic. We don’t have the same band. This the band of the Light Division - their jazz, swing and Dixie section - so they should be turning out some fairly good tunes. Hopefully it will be a good night. We will also be playing a variety of taped, concentrating on good old swing, Frankie, some blues, a bit of rock and roll, the kind of thing that you can really let your hair down to.

CB: If people want to get tickets, where can they get them from?

LR: Obviously numbers are limited so people need to get in touch with the Museum pretty quickly. Word has spread quickly and we have already got a few tables booked out. We will have a raffle and we’ve got a really nice auction item - three special ones actually - Richard Cockwell has done a beautiful watercolour for us and it’s in a frame made from “Charles Cooper” wood

SF: Doors are opening at 1930 and there will be a licensed bar running until 0030.

WOOL CLASSER:

Australian wool classer, Dennis Humphrey, is leaving the Islands tomorrow after holding four wool-classing workshops around the Falklands. (Inaudible but I guess she said:) Dennis is a sheep and wool teacher in the Southern Queensland Institute (inaudible but I guess she said:) at Castle Warwick and graduated as a qualified wool classer last year.

HARBOUR, SHIPPING AND FISHING NEWS:

Reefer Cape Latherin sailed on Friday morning and Tankers Pacific Trader and Baltic Prosperity sailed from Berkley Sound on Thursday. There were 3 Korean Jiggers in Port William on Thursday transhipping to the Reefer, Luis Yeah. GSA Admiral sailed on Thursday after having its thrusters cleared. The Golden Touza is in Berkley Sound bunkering from the Centaurus. Six Loligo Trawlers came in this morning for EU cargo inspection. Combination vessel, Polar GATT arrived at FIPASS this morning to load stores and fishing equipment. The Loligo vessel was sailing to Montevideo and Spain. There are four vessels still fishing for Finfish and one Loligo vessel is still fishing for experimental purposes. There is still one Long-liner fishing.