Magnetic Resources NL announced a significant very shallow gold mineralised zone at HN5 near old workings, within the Hawks Nest tenement E38/3127, which is associated with a shear zone that contains a black shale and quartz veining adjacent to a NNW trending porphyry. In drill hole MHNRC48, 4m composite sampling has intersected 8m @ 4.2g/t gold from 4m with a peak tellurium assay of 35ppm from 8 to 12 metres suggesting a possible gold-telluride association and may be similar to some of the Kalgoorlie deposits. Also of note in drill hole MHNRC48 is the elevated gold and multi elements including tellurium assay values in the porphyry from 32m to the end of the hole at 60m, which is where there is also ubiquitous silica alteration from visual logging (Table 1and mineralogical report). The porphyry with crowded texture is part of the shearing noted by the mapping completed here recently. Analyses of the relevant 1 metre "split" samples by fire assay is to be carried out shortly. Other significant intersections from the recent RC drilling and 4 metre composite sampling include: MHNRC42 4m @ 0.203g/tAu from 4m - 8m at HN4; MHNRC41 4m @ 0.782g/tAu from 8m - 12m at HN4; MHNRC38 4m @ 0.486g/tAu from 8m - 12m at HN4; Due to the encouraging result in MHNRC48 at HN5 further drilling is warranted to confirm the orientation of the mineralised zone to the NNW, the structural setting of the mineralisation and the host rock stratigraphy. Three RC drill holes 20m apart in 50m drill traverses to the NNW and SSE of the shallow intersection (8m - 12m) in MHNRC 48 is planned to a depth of approximately 60m. Also, more detailed soil geochemistry on a 20x20m grid will be carried out to help define the size and direction of the anomalous rock and soil geochemistry as the original siting of the holes was based on the HNR52 rock sample of 3.55g/t and a soil value of 369ppb. An infill70-sample soil programme completed recently on the western side of HN5, has shown up a much larger Au geochemical anomaly being 80m wide by 500m long which has values ranging from 52-229ppb and peaks and correlates with a number of different elements including Te, Mo, Bi, W and Pb.