Annual report on EL 8688, 18 July 1998 to 17 July 1999

Abstract

EL 8688 is located approximately 85 kilometres south - east of Darwin on the Mount Bundey 1:50,000 scale map sheet. The geology is dominated by the South Alligator and Mount Partridge Groups. Dominion Gold Operations Pty Ltd conducted LAG sampling over EL 8688 as part of a larger program over the Rustlers Roost Project area. An anomalous result of 840 ppb Au was returned in the south of the tenement. Northern Gold NL completed digital data studies over the licence, from 1995 to 1997. During the 1997/98 field season, Northern Gold NL carried out an evaluation of the uranium mineralisation potential within the Mount Bundey area, as well as a rock chip sampling program. The rock chip sampling program returned a peak result of 110 ppb Au, with a repeat analysis of 119 ppb Au (Sample No. 189318, 8577760N : 773902E). EL 8688, originally comprised of 4 blocks, 13 square kilometres in area, was granted to Dominion Gold Operations Pty Ltd on the 18 July 1994, for a period of four years. The tenement was subsequently acquired by Territory Goldfields NL, which is managed by Northern Gold NL, in May 1995. A waiver of reduction was granted over the licence on the 2 October 1996, enabling 4 blocks to be retained until the 18 July 1997. Due to compulsory relinquishment, EL 8688 was reduced to 2 blocks, 6 square kilometres in area, on the 19 January 1998. A renewal application was submitted over the licence on the 29 May 1998. During the 1998/99 exploration season, Northern Gold NL contracted Arnhem Exploration to complete a regional soil sampling program over the entire licence area. Samples were collected at 50 metre intervals and composited to 200 metres, along five, 800 metre spaced lines. A total of 50, B-horizon, -5 millimetre size fraction, samples, including duplicates, were submitted to Assaycorp, in Pine Creek, for analysis of Au, Ag, As, Cu, Pb and Zn. The residual BLEG liquor (Au RE), from selected samples, was re-assayed to check for potential instrument error and laboratory contamination. The regional soil sampling program returned peak results of 6.2 ppb Au (Repeat analysis, Sample No. 192857, 8577445N : 774258E) and 6 ppb Au (Repeat analysis, Sample No. 192840, 8579046N : 774274E). Further work will include infill soil sampling, rock chip sampling and geological mapping, to identify the source of the gold dispersion. The covenant for the 1998/99 year of tenure was $5,700, and the expenditure totaled $7,015.