Gippsland Ltd – Quarterly Report

Quarterly report highlights include

ABU DABBAB
Resource Increase and Upgrade
Tantalum pentoxide grades increased from 243g/t to 250g/t
Ore Reserve upgrade
Feasibility study update
Successful Acid Mine Drainage testwork completed
Plant site and TSF areas – geotechnical survey completed
Environmental study update
Project funding progress

ZEEHAN TIN PROJECT
Joint Venture – Stellar Resources Ltd

CORPORATE
Appointment of Senior Project Co-ordinator
Fund raising completed

ABU DABBAB – RESOURCE INCREASE AND UPGRADE
During the quarter, Gippsland Limited (‘Gippsland’ of ‘the Company’) [ASX/AIM: GIP, DB: GIX]  received all the outstanding tantalum and tin assays from the diamond drill holes completed as part of the infill drilling programme at Abu Dabbab.  The programme was designed to allow an upgrade of the Inferred Resources to the higher Indicated and Measured categories.  Success of the programme was shown initially with the upgrade made to resources based on the RC drill results received up to March. 
The drilling programme was successful despite delays caused by the industry-wide problem of assay laboratory back-logs.  It produced an 11% resource increase with 73% of the resource now categorised as Measured and Indicated, an increase from 40 million tonnes to 44.5 million tonnes, while the global tantalum pentoxide grade has increased from 243g/t to 250g/t.
The earlier resource update completed in March 2008 (Table 1) incorporated the results of the previous historical drilling plus a campaign of RC drilling by Gippsland.  This confirmed the previous resource estimate of 40Mt.  The March 2008 resource estimation was by the inverse distance squared block model method.