Annual exploration report for MLN 414, MLN 415, MLN 416, MLN 417 and MLN 418 Rhodes Prospect, year ending 31 December 2004

Abstract

MLN 414-418 inclusive cover the Rhodes gold prospect, 115 km SE of Darwin and 3 km NE of Mt Paqualin, on the Burnside 1:50,000 map sheet. The Rhodes deposit has been systematically explored by WMC and later by Northern Gold NL. RC drilling programs outlined shallow west dipping gold mineralisation hosted by Zamu Dolerite on the western limb of a north trending anticline in Gerowie Tuff Formation. This resource was globally estimated (1997) to total 700,000t @ 1.80g Au/t and lies within 3.5 km of the Bons Rush and Kazi gold deposits, also owned by the Burnside JV. The tenements were incorporated into the Burnside Joint Venture in April 2002 and since initial ranking as a potential source of low grade mill feed Rhodes has continued to be dependent on a renewal of mining and treatment activity at the nearest facility. At present this lies at Union Reefs 62.0 km to the SE. This mill, and associated tenements, was purchased by the JV in August 2004. The Brocks Creek mill that was also on care and maintenance has been sold to Tanami Gold NL. The joint venture is presently re-considering the optimum scheduling, ranking and relative value of its various gold resources proved by drilling in the region. The shifting of the centre of focus to Union Reefs has an economic impact on all the Burnside JV deposits. The longer haul distance has to be balanced against the larger mill capacity and the presence of satellite deposits. Pending the outcome of the present assessments, the Rhodes deposit comprises a strategic gold resource of low to medium grade that has been comprehensively explored by drilling. In the interim the deposit will be subjected to further economic review and reporting.