Adelaide, Feb 19, 2007 AEST (ABN Newswire) - Oxiana Limited (ASX: OSX) has advised Queensland Gold and Minerals Limited ("QGM") that following the successful completion of ground and geophysical work, a drilling program of approximately 2,500 metres will commence on the QGM's Warroo Project next month.

Oxiana is earning an 80% share in the Warroo project, near Texas in south-east Queensland, for an outlay of $4 million.

Oxiana has completed soil and rock chip sampling, and now an Induced Polarisation geophysical study, which has extended the known area of mineralisation associated with the 1980's open pit workings at Warroo.

Oxiana previously reported 'highly encouraging results' from its sampling program with rock chips assaying between 3 and 30 grams per tonne (g/t) gold collected in an area not previously sampled to the southwest of the historic workings.

EVELEIGH PROJECT

Previous soil sampling over the Kelly's End prospect extended over 75 hectares. Additional sampling was recently extended over a further 150 hectares. A small gold anomalous zone was defined, however the main result was the delineation of the boundary of a 30 hectare zone as the primary target.

Further rock chip sampling has reinforced that a gold anomalous porphyry system is the initial drilling target. The target is an elongate zone of 300m x 50m shearing with gold-bearing quartz veinlets, adjacent to a microgranite intrusive body 50m x 50m.

An initial Reverse Circulation percussion drilling programme of 600 metres in 6 holes has been completed and assays are awaited.

BUCHANANS CREEK PROJECT

A pattern of reconnaissance stream sediment sampling for tantalite, tin and gold completed in 2004 was recently extended to cover newly granted exploration permits. Sample analysis is in progress.

MALCOLM CREEK PROJECT

Reconnaissance pan concentrate stream sediment sampling for tantalite, tin and gold and Bulk Cyanide Leach sampling for gold were completed over the 20 kilometre strike length of the mylonite unit and has successfully focused the search to 2 smaller areas. This programme has confirmed the highly anomalous nature of the 2 sq klm Malcolm Creek Dome target and highlighted a potential second target area nearby.

Geological traversing has highlighted the potential for a porphyry gold target of a similar style to the Kidston gold mine (now closed), 70 kilometres to the east.

OTHER PROJECTS

QGM has nine advanced exploration projects on which more than $1.5 million has been expended to date. The projects include those above, and the Top Camp property which is only 40 kilometres from the Rocklands project owned by Cudeco Limited (ASX-CDU).

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