Annual exploration report for MCN 3705, MCN 3706, MCN 3707 and MLN 1103 for period ending 30 April 2008 Woolwonga Group, Burnside Project

Abstract

The Woolwonga Group comprises 7 (sic 4) tenements which are located about 130 km SE of Darwin, NT and 16 km NE of the Brocks Creek mine. It covers the Woolwonga gold mine which is situated within the historical gold mining field. GBS Gold Australia Pty Ltd acquired the tenements in 2005 through a subsidiary Northern Gold Limited. Gold mineralisation at Woolwonga is associated with quartz-sulphide veins which fill faults and fractures set in Mt Bonnie Formation. Mineralisation and historic workings on vein outcrops occurred over the full length of the original Main Ridge, and colluvial shedding from this extended for 500m SE of the ridge and was worked extensively by Chinese workers from the late 1880's to early in the 20th century. The gold is controlled by three main structural features such as the axial zone of the Woolwonga Anticline, SE dipping fracture zones and competency contrast sites. Following extensive exploratory drilling and a feasibility study by the Dominion Mining, the company estimated a recoverable mining reserve of 2.1Mt @ 2.78g Au/t. Northern Gold NL acquired the tenements from Dominion following completion of the mining phase and rehabilitation of the mine site. During the reporting period, a total of 42 Air Core holes were drilled for 869 metres to test the expression of gold mineralisation towards southeast of the present pit (Empire Prospect). A total of 364 samples were collected for assaying. Au was analysed by fire assay and base metals by AAS (3 acids digestion). Au contents vary from 0.001 to 1.52 ppm. From the data it is clear that Au contents are generally below 0.1 ppm. The highest concentration of gold came from sample no. EXD04438 (Drill hole WAC 141). The Woolwonga group of tenements has shown potential to host additional gold mineralisation. In the following exploration program, a further infill soil sampling program will be carried out to identify additional anomalous zones of mineralisation which may subsequently lead to RAB/RC drilling.