Gold Anomaly Limited (ASX:GOA) Report High Grade Gold Intercept at Crater Mountain Gold Project in Papua New Guinea

Sydney, July 12, 2011 AEST (ABN Newswire) - Gold Anomaly (ASX:GOA) is pleased to announce the latest assay results from the company's flagship Crater Mountain gold project in Papua New Guinea (PNG).

Drill hole NEV022 intersected 46m @5.90 g/t Au from 44m, including 2m @ 98.20g/t Au from 74m depth.

The hole targeted the zone beneath the artisanal mine workings on the west side of the Nevera Prospect ridge, approximately 200m northwest of the "Main Zone" where the bulk of historical and current drilling has been focussed.

Commenting on the results, Executive Chairman Mr Greg Starr said, "We are obviously very excited by the NEV022 results, which represent our highest grade results from our maiden drill program.

"The discovery of this new high grade gold zone further enhances the prospects of Crater Mountain ultimately becoming the next major gold discovery in PNG.

Whilst most of the excitement to date has arisen from drill results that point to the presence of a large bulk tonnage deposit at the Main Zone, the project will certainly benefit from the existence of supplementing a main deposit with a near surface, high grade gold deposit, akin to the development at Barrick's (TSE:ABX) Porgera mine.

"We are awaiting results from the final hole of our maiden drilling campaign, NEV023, which also targeted the artisanal mining zone. Results are expected within a week."

Gold values in the 46m interval include the bonanza intersection of 2m at 98.20 g/t Au (3.16 ozs/t Au) from 74m to 76m, with 3.79 g/t Au from 76m to 78m and 4m @ 7.62 g/t Au from 44m.

If a top cut of 15.00 g/t Au is applied to the sample which assayed 98.20 g/t Au and the intercept is re-calculated it is 46m at 2.32 g/t Au.

The results fit in well with the observed mining methodology previously employed by the artisanal miners who win gold by following two sets of steep mineralised fractures (orientated roughly N-S and E-W),and obtaining their main production from steeply plunging bonanza-grade shoots at the intersections of the fracture sets.

The second zone of strong gold values from 118m to 124m comprises three 2m samples of 3.97 g/t Au, 4.23 g/t Au and 1.27 g/t Au.

The final two drill holes of the Phase 1 drilling program were focussed at the site where artisanal miners previously operated.

The artisanal miners employed very rudimentary methods and have extracted an estimated 10,000 ounces of gold from the area since 20052.

The miners employed electric jack hammers on extension cords powered by small petrol generators at the surface to cut narrow crawl-ways along the northerly "lines" (steep fractures generally less than 1cm wide) that open out into larger "rooms" at the intersection of these fractures with the E-Wset, and sank as much as 40m (with several to 60m) on the irregular near-vertical ore-shoots.

The mined rubbly ore was washed at the surface in gold dishes or small sluice boxes, with visually identified high grade fragments (usually with visible free gold) set aside for crushing by pestle-and-mortar before re-washing; as well as coarse gold, abundant fine pyrite was commonly present in the dishes along with fine free gold which was recovered by the late addition of mercury.

High grade trench intersections previously reported by Triple Plate Junction, including 48m at 10.20 g/t Au, occur along strike of the zone intersected in NEV022, but additional drilling, benching and mapping is required to determine if these zones are related.

Additional benching is currently being planned to further explore this zone.

The bonanza intersection in NEV022 lies about 60m deeper than the base of the mineralised spur, up to 100m below the highest portals of the artisanal openings on the spur.

The hole extends the northern margin of the broad mineralised zone 70m east of its exposure at the base of the spur.

The NEV022 result enhances the prospects of the viability of a small scale, open cut operation at the high-grade gold zone, to complement the potential development of a larger operation at the Main Zone. The mineralised material at the high grade zone can be extracted by hand or with minor mechanisation, and it is believed that by applying rigorous scrubbing to the run-of mine material and screening off the larger fragments which contain little gold.

The volume of material to be crushed and processed through a gravity plant could be greatly reduced, underpinning the profitability of a mechanized operation.

Ongoing exploration of the high-grade zone to be accelerated Given the excellent NEV022 results, Gold Anomaly will accelerate its exploration program of the high-grade zone. Detailed geological mapping will be undertaken in the high-grade zone as a priority to better determine the lithologies, alteration and particularly the structural controls of the mineralisation; this will include a close examination of the drill core to identify the gold mineralising event.

Further drilling will be undertaken along strike to test the lateral extensions of the zone as well as deeper holes to test its projection to depth.

Exploration for zones similar to that intersected in NEV022 will also be undertaken with initial work concentrating on at least two areas on the road to the Top Camp which have been identified by the benching and have similar geochemical signatures and geology to the artisanal mining zone.

Due to the highly variable distribution of the high gold values typically associated with deposits of this type, the Company is considering applying for a variation of conditions of grant of EL 1115 to drive several exploratory adits into the mineralised spur and carry out underground drilling and limited bulk testing.

As well as providing excellent 3-dimensional geological information, this will produce representative material to test crushing and scrubbing characteristics and permit the assessment of gravity separation methods to achieve maximum gold recovery for a possible early small to medium-sized operation with which to finance accelerated exploration of the remainder of the Nevera Prospect and neighbouring prospects.

NEV020 to NEV023 Drill Hole Parameters Drill Hole Parameters for NEV020 to 023 are detailed below, results for NEV020 and 021 were released on the 6th of July 2011, results from NEV022 are detailed above and results from NEV023 will be released in the near future.

The Zone of Gold Mineralisation quoted in the release pertaining to NEV021 and released on the 6th July 2011 of 244m @ 0.52 g/t Au, was calculate using a 0.50 g/t Au Cut Off Grade, using a maximum internal dilution factor of 12m, the minimum sample width was 1.2m and maximum sample width was 2m. The Intercept was calculated by using a weighted average, whereby the sum of the individual assays times the individual widths are divided by the overall intercept length, no top cut has been applied.

For the complete Gold Anomaly Limited announcement including figures and tables, please view the following link:
http://www.abnnewswire.net/media/en/docs/233276.pdf

Contact

Ken Chapple Executive Director Mob: +61-418-758-301 Greg Starr Executive Chairman Mob: +61-2-9241-4224 info@goldanomaly.com.au http://www.goldanomaly.com.au