PROJECTS

The Ponton Project is located approximately 535km east of Perth and 200km east of Kalgoorlie in the Eastern Goldfields of Western Australia. The major East-West Trans Australia railway is situated 70km to the south. It covers a total area of about 206km2 and lies within the Class A Queen Victoria Spring Nature Reserve. The Cundeelee Aboriginal Settlement is located 25km to the southeast.

The project area is located at the southeastern margin of the Yilgarn Archaean Craton. The main basement lithologies are believed to comprise granitic gneisses, migmatites and intrusives over printed by the northeast trending tectonic fabrics of the Albany-Fraser Orogen. "The area lies at the intersection of the fault and shear system of the Fraser Complex to the southeast and the southern extensions of the Laverton Tectonic Zone" (Fitton, A., 1995). The intersection of these two major tectonic zones may have been a factor in the development of the Cundeelee alkaline pyroxenite and carbonate complex that clearly exhibits carbonatite characteristics. Locations of the primary extrusive vent (or vents) remain unknown.

The Company is targeting Rare Earth Element (REE) mineralisation, which may be related to the Cundeelee intrusive.

Galaxy has compiled and analysed historical REE exploration and drill data from work completed by Herald Resources Limited in 1994.  Detailed aerial and ground magnetic and radiometric surveys were completed, which outlined a strong radiometric anomaly in the east of the tenement, in addition to several magnetic anomalies.  Surface sampling over the radiometric anomaly produced strongly anomalous REE results.  Herald Resources completed an aircore drilling program drilled to blade refusal, which returned significant intersections of REE mineralisation.

The best historical drill results show intersections including:

16m @ 14.48% Rare Earth Oxides + Y (REO)

28m @ 10.50% REO including 8m @ 13.12% REO

As a comparison, Lynas Corporation Mt Weld's Central Lanthanide deposit has an average resource grade of 10.70% REO+Y (Lynas Corporation web site resource statement)

In light of interest in future global rare earths supply, Galaxy has decided to review and evaluate the potential viability of the Ponton Rare Earths Project.