Annual exploration report Yam Creek Group year ending 31 December 2003 MLN 214, 341, 343, 349, 823-832, 858-863 and MLN 940, MCN 46-47, 49-50, 624-625, 898-899, 4428, 4430, 4432, 4434 and MCN 4723

Abstract

The Yam Creek tenement report group covers the historically important Yam Creek alluvial and bedrock gold mining centre that is located approximately 150km SSE of Darwin, and 29km east of Brocks Creek railway siding and gold treatment plant. The tenement group comprising a total of 570.97 hectares was part of an extensive schedule of tenements incorporated into a joint venture with Buffalo Creek Mines P/L in April 2002. Burnside Operations P/L is the management entity. Burnside Operations P/L was created with the objective of exploring, developing and mining gold deposits within the Brocks Creek region and milling the ores at the Brocks Creek treatment facility. The area has been the subject of modern gold exploration since the late 1970?s. The more recent exploration, post 1988 was managed by Northern Gold NL and its subsidiaries and Acacia Resources (AngloGold) subject to option agreement. Since formation of the joint venture the Yam Creek and North Point area has been subjected to reverse circulation drilling programs that were designed to prove up gold resources that could supplement mill feed for a full scale mining operation in the area. The total cost of this work during 2002 was $122,014 During 2003 a geostatistical consultant was commissioned to conduct a resource study on the North Point and Princess Louise gold deposits. This data has been used to assess the relative economic merits of the schedule of gold resources held by the Burnside Joint Venture. During the 2003 year these reports and support work were costed at $19,923.00.