Moto Goldmines Limited
TSX : MGL
ASX : MOE

Moto Goldmines Limited

July 28, 2005 09:54 ET

Moto Goldmines Limited: Quarterly Report For The Period Ended 30 June 2005

PERTH, AUSTRALIA--(CCNMatthews - July 28, 2005) - Moto Goldmines Limited (TSX:MGL)(ASX:MOE) -

Quarterly Report For The Period Ended 30 June 2005

HIGHLIGHTS



---------------------------------------------------------------------
MOTO GOLD PROJECT

- Four drill rigs operating on the Moto site. Drilling programme
has been continuous since commencement in February 2004.

- Reconnaissance and infill drilling during the quarter continued to
identify significant, shallow gold mineralisation.

- Soil sampling of regional prospects continues to highlight further
targets for follow up sampling and drilling.

- Independent resource estimate on four additional prospects released
in May 2005.

- Upgraded resource estimate planned for August 2005.

- Pre-feasibility work continued during the quarter, with scoping
study results planned for September 2005.

- Trading of Company's shares on the Toronto Stock Exchange commenced
on 27 May 2005.

---------------------------------------------------------------------


DEMOCRATIC REPUBLIC OF CONGO - MOTO GOLD PROJECT

The Company's extensive exploration and development programme at the Moto Gold Project in the north-east of the Democratic Republic of Congo, which has effectively been continuous since commencement in February 2004, continued during the quarter ended 30 June 2005. There are presently 4 drill rigs (one RC and three diamond) operating on the Moto site, with soil sampling teams also collecting samples from various project areas. The RC and soil samples are shipped to SGS in Mwanza, Tanzania for assay, whilst the diamond core samples are dispatched to Genalysis Laboratory Services in Perth, Australia for assay.

Reports on the exploration activities during the quarter have previously been released on 2 May 2005 "Exploration Update" and 6 May 2005 "Revised Resource Estimate" (these releases made prior to completion of the merger and listing on the TSX) and on 6 July 2005 "Further Significant Mineralisation at Karagba" and 19 July 2005 "Drilling Confirms Significant Potential at Sessenge Prospect". The specific details reported in these releases have not been repeated in the following report.

The status of exploration at each of the prospects is as follows.

Megi - Mengu Trend

The Megi-Mengu Trend is a large northwest trending mineralized structure traced over a distance of 4 kms. Reconnaissance drilling to date has been designed to systematically test the principal targets along this gold in soil geochemical anomaly, including Mengu Hill, Mengu, Marakeke and Megi.

Inferred resource estimates were released on 6 May 2005 for Megi (3.2m tonnes at 1.8 g/t Au for 187,000 ounces of gold) and Mengu Hill (7.9m tonnes at 2.9 g/t Au for 731,000 ounces of gold). An upgraded resource estimate, which will incorporate recent drilling and an initial resource estimate for Marakeke, is planned for release in early August.

Pakaka and Pamao

The Pakaka mineralisation is a shallow dipping 15-25 degrees, northeast plunging sheetlike mineralised body averaging 10-40m in thickness. The mineralisation starts at surface and historical drill data has intersected mineralisation at vertical depths exceeding 270m (approx. 900m down plunge). The deposit has yet to be closed off along strike or down dip.

A 54 hole, 10,000m infill drill programme has recently been completed. Results are at hand for 31 of the holes completed (results from seven holes previously reported) and significant intercepts include: 8m @ 9.36 g/t Au from 96m to 104m in PDD046, 18m @ 2.61 g/t Au from 112m to 130m in PDD049, 10m @ 4.31 g/t Au from 99m to 109m in PDD51, 10m @ 9.70 g/t Au from 140m to 150m in PDD053, 16m @ 5.54 g/t Au from 123m to 139m in PDD061 and 12m @ 3.57 g/t Au from 85m to 97m in PDD081. Significant results received and not previously reported are summarised in Table 1.

This infill programme brings the drill spacing to 40m x 40m over the majority of the prospect enabling a reclassification of a major portion of the resources from inferred to indicated.

An upgraded resource estimate planned for release in early August, with a further upgrade scheduled for late September when all the results of the infill programme are received.

At the Pamao Prospect, which lies 500m west of the Pakaka Deposit, drilling has defined shallow northeasterly dipping (15-25 degrees) mineralisation over a strike length of 500m and down dip for up to 250m, a vertical depth of less than 150m. The mineralised zone averages 15-25m thick. An initial inferred resource estimate of 4.1m tonnes at 1.6 g/t Au for 0.2m ounces of gold was released on 6 May 2005.

Infill and extension drilling has defined a series of NE-trending, high-grade mineralised ribs within the extensive, broad lower grade envelope similar to the Pakaka Deposit. The most easterly of these plunging mineralised ribs lies on the northeastern end of the Agbarabo mineralised trend 500m NE of the Tete Bakangwe mineralisation and 175m NW of the Pakaka Deposit. A recent intercept of 10m @ 9.57 g/t Au from 70m to 80m and 18m @ 6.21 g/t Au from 98m to 116m in PRC215 indicate the presence of possible stacked mineralised shoots. Previous significant intercepts on the upper mineralised shoot have included 9.65m @ 5.09 g/t Au from 62.35m to 72m in PDD027 and 10m @ 7.83 g/t Au from 40m to 50m.

Drilling indicates continuity between these higher grade ribs and the mineralsation to the west. Two northeasterly dipping sheets of mineralisation occur at a similar position as these ribs. Significant intercepts from these zones include 14m @ 2.88 g/t Au from 86m to 100m in PDD010 and 16m @ 1.34 g/t Au from 96m to 112m and 2m @ 32.19 g/t Au from 178m to 180m in PDD008.

A similar mineralised rib occurs 400m to the west. Diamond and RC drilling returned 14m @ 4.06 g/t Au from 46m to 60m in PMRC110 and 300m to the NE 10m @ 5.39 g/t Au from 136m to 146m in PMDD028. This rib has a width of 150m, a thickness of 10m to 20m and a plunge length of over 400m.

An upgraded resource estimate for Pamao is planned for release in early August.

Significant results received and not previously reported are summarised in Table 3.

Agbarabo-Tete Bakangwe

During the quarter a compilation of historical data was completed on the former Agbarabo Mine. A total of 600,000 ounces of gold were mined at an average grade of 39 g/t. This gold was produced from a mineralised shoot averaging 20m to 40m thick, 20m to 40m in width, with a down plunge length of 400m and grading up to 592 g/t Au in an historic 3m drill intercept. The Agbarabo shoot shares the same strike and plunge directions as the majority of the mineralised prospects in the Moto Gold District at N045 degrees E and minus 20 degrees to minus 30 degrees NE.

The Agbarabo Mine is at the southern end of the Agbarabo mineralised corridor which trends NE and includes the Tete Bakangwe mineralisation 2.7km to the NE. Tete Bakangwe was previously exploited by the Belgians via a shallow open pit. Recent drilling along and down plunge from the open pit has returned 20m @ 3.05 g/t Au from 74m to 94m in PMRC111, 16m @ 2.54 g/t Au from 56m to 72m in PMRC112 and 26m @ 1.91 g/t Au from 68m to 94m in PMRC113. This has demonstrated the presence of mineralisation along plunge for a distance of 250m, a width exceeding 100m and a thickness of up to 26m at Tete Bakangwe. Previous drilling on this mineralisation intersected 16m @ 5.90 g/t Au from 34m to 50m in TRC002 which ended in mineralisation. A follow-up drill programme is planned.

Infill soil sampling on the 4km Agbarabo mineralised trend has recently been completed. This closes the grid to 100m x 50m producing better target definition for further drilling on the existing gold-in-soil geochemical anomalies along the trend.

Significant results received and not previously reported are summarised in Table 2.

Ndala and Ndala North

The Ndala deposit is located 1.9km east of Pakaka and was the subject of pitting by Okimo in the 1970's and an initial reconnaissance drilling programme during 2004 by the Company. A total of 42 RC holes for 2,520 metres were recently completed on the Ndala North gold in soil geochemical anomaly. Significant mineralized intercepts not previously reported include: 6m @ 2.63 g/t Au from 20m to 26m in NNRC046, 12m @ 1.25 g/t Au from 12m to 24m in NNRC051 and 8m @ 2.27 g/t Au from 22m to 30m in NNRC052.

These significant intercepts all lie within the northern most +125ppb gold-in-soil anomaly tested by the Ndala North reconnaissance programme. This anomaly is interpreted to lie on a basalt/sediment contact stratigraphically above and 8km northeast of the Pakaka mineralization on the NE end of the Agbarabo mineralised trend. An RC drill programme is planned to further test this mineralisation.

Significant results received and not previously reported are summarised in Table 4.

Kombokolo

The Kombokolo Prospect lies approximately 800m to the southeast of the old Agbarabo mine and is marked by artisanal workings over one of the main exploration drives established by the Belgians in the early 1960s.

Results from the initial reconnaissance drilling programme were released on 2 May 2005. An initial resource estimate is planned for release in early August.

Durba Trend

The Durba Trend is part of a large northeast trending mineralized structure traced over a distance of 4.5km. The mineralized structure hosts the Kibali deposit (22.6Mt @ 1.9 g/t Au) at its southern end and extends northeast, passing through the Sessenge Prospect (800m x 500m gold in soil anomaly greater than 125ppb Au); the Durba Mine, a historical producer; the Chauffeur Prospect which is the target of significant artisinal activity in the oxide zone and into the Karagba Prospect (inferred resource estimate of 4.3Mt @ 2.8 g/t Au at Karagba and inferred resource estimate of 3.3Mt @ 2.9 g/t Au at Karagba Extension).

Reconnaissance drilling at the Karagaba Prospect during the quarter returned numerous significant intercepts (released on 6 July 2005). This drilling is interpreted to have defined a northeast plunging mineralized zone up to 100m in thickness with a potential strike length of 500m. An upgraded resource estimate for Karagba is planned for release in early August.

Results from the recent drilling programme at Sessenge, which included numerous significant intercepts, were released on 19 July 2005. An initial resource estimate is planned for release in early August.

Gorumbwa

The Gorumbwa deposit consists of a series of elongated stacked lodes within a zone 100 to 180m long and approximately 50m thick traced down plunge to approximately 400m vertical depth (1,100m down plunge). The deposit remains open along strike and at depth. The current reported inferred resource at Gorumbwa is 8.5 million tonnes at 6.3 g/t Au for a total of 1.7 million ounces of gold. Infill drilling is planned in conjunction with the proposed pre-feasibility study.

Kalimva

Soil anomalies have been defined over 20 sq km at the old Kalimva mine area, which is located 4 to 9kms north of Mengu. The Kalimva area covers part of the same geological sequence that hosts the deposits of the Durba Gold Camp (Gorumbwa, Durba, Agbarabo and Pakaka) and has a similar structural setting.

The initial reconnaissance RC drilling (200m line spacing) has been completed and significant results include 2m @ 129 g/t Au from 0m to 2m in KVRC069, 2m @ 2.55 g/t Au from 48m to 50m in KVRC126, 4m @ 1.46 g/t Au from 2m to 6m in KVRC145, 4m @ 1.70 g/t Au from 12m to 16m in KVRC145, and 2m @ 5.84 g/t Au from 18m to 20m in KVRC147. The drilling targeted gold-in-soil anomalies to the east of known mineralisation previously exploited by the Belgians. It identified the potential for mineralisation in both the surficial lateritic material and in the underlying bedrock. Rock types intersected during the programme included quartz porphyries and various altered and mineralised volcanics. A granitoid stock was identified on the southern edge of the gold-in-soil anomaly.

Follow-up drilling on these anomalies and drilling at the Kalimva and Ikamvu mines to the west is required to fully test the significant potential of the Kalimva gold camp.

Significant results are summarised in Table 5.

Soil Geochemical Programmes

Soil sampling has been completed on the Abimva Project Area located 25km east of the Pakaka Deposit. All results of the soil sampling will be available in August. Infill sampling will now commence on the highly significant Rambi gold-in-soil anomalies followed by soil sampling at the Kalimva West Project area located 14km north northwest of Pakaka.

Prefeasibility Work

As previously reported, prefeasibility work has commenced with preliminary metallurgical testwork being completed and consultants appointed to complete a detailed environmental baseline survey.

The Company anticipates completing a scoping study in September 2005, followed by completion of pre-feasibility work in early 2006 and completion of a detailed feasibility study in late 2006.

CORPORATE

The Company completed the merger with a Canadian company in May 2005. The merged group commenced trading on the Toronto Stock Exchange and the ASX on 27 May 2005.

At 30 June 2005 the Company had cash at bank of AU$5.9 million.

Additional Notes:

Scientific or technical information in this news release has been prepared under the supervision of Greg Smith, Exploration Manager of the Company and a qualified person under National Instrument 43-101 and a member of the Australasian Institute of Mining and Metallurgy (AusIMM).

Greg Smith has sufficient experience which is relevant to the style of mineralisation under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" (the JORC Code).

The Information in this report that relates to Mineral Resources on the Durba, Megi, Mengu and Pamao deposits is based on a resource estimate compiled by Ingvar Kirchner who is a member of the Australasian Institute of Mining and Metallurgy (AusIMM). Ingvar Kirchner is a Senior Consultant-Resources of RSG Global. Ingvar Kirchner has sufficient experience which is relevant to gold mineralisation and resource estimation to qualify as a competent Person as defined in the December 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" (the JORC Code). Ingvar Kirchner consents to the inclusion in this report of the Information, in the form and context in which it appears.

The Information in this report that relates to Mineral Resources on the Karagba Extension is based on a resource estimate compiled by Klaus Eckhof, who is a member of the Australasian Institute of Mining and Metallurgy (AusIMM). Klaus Eckhof is a director of Moto Goldmines Limited. Klaus Eckhof has sufficient experience which is relevant to gold mineralisation and resource estimation to qualify as a competent Person as defined in the December 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" (the JORC Code). Klaus Eckhof consents to the inclusion in this report of the Information, in the form and context in which it appears.

The Information in this report that relates to Mineral Resources on the Gorumbwa, Pakaka and Kibali deposits is based on a resource estimate compiled by Ted Copeland who is a member of the Australasian Institute of Mining and Metallurgy (AusIMM), Mineral Industry Consultants Association (MICA) and is a Chartered Professional (Geology). Ted Copeland is a director of Cube Consulting Pty Ltd. Ted Copeland has sufficient experience which is relevant to gold mineralisation and resource estimation to qualify as a competent Person as defined in the December 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" (the JORC Code). Ted Copeland consents to the inclusion in this report of the Information, in the form and context in which it appears.

Caution Regarding Forward Looking Statements: Statements regarding the Company's plans with respect to developing the Moto Gold Project are forward-looking. There can be no assurance that any mineralisation will be proven to be economic, that anticipated metallurgical recoveries will be achieved, that future evaluation work will confirm the viability of deposits identified with the project or that future required regulatory approvals will be obtained.

To view the following tables:

Table 1 - Significant Intercepts Pakaka Deposit;

Table 2 - Significant Intercepts Tete Bakangwe;

Table 3 - Significant Intercepts Pamao;

Table 4 - Significant Intercepts Ndala North;

Table 5 - Significant Intercepts Kalimva;

Please click on the following link to CCNMatthews' website: http://www2.ccnmatthews.com/database/fax/2000/moto728.pdf

Contact Information