Annual exploration report EL 23540 Saunders Creek year ending 16 February 2004

Abstract

EL 23540 is located 150km SE of Darwin, NT and 20km ESE of Brocks Creek. The tenement is subject to the Burnside Joint Venture, managed by Burnside Operations P/L comprising Territory Goldfields NL and Buffalo Creek Mines NL. The latter are subsidiaries of Northern Gold NL and Harmony Gold (Australia) P/L respectively. The licence encompasses a suite of metasedimentary rocks that are part of the Pine Creek Geosyncline sequence and lies just east of the gold and base metal mineralised localities of Iron Blow and Yam Creek. This is the first year following grant of the licence and the annual expenditure was set at $5,600.00. The joint venture has been actively exploring the Burnside region since its formation in April 2002. Work to date has been focused on establishing open pit resources through RC drilling at Yam Creek, Mottrams, Chinese South, Cosmo Howley, and Woolwonga. Underground development and diamond drilling has been carried out at the Zapopan Mine. Work on EL 23540 has been subordinate to activity on other JV tenements as the emphasis has been on establishing gold resources at established mineralised prospects. Expenditure during 2003 was related to a remote sensing study, fracture analysis and reporting. This amounted to $650.00 A large volume of unsorted historic exploration data exists at the Brocks Creek library. Sorting and collation of this data in 2004-05 will advance the state of understanding of the tenement's prospectivity.