Annual exploration report, Pine Creek Project tenements, year ending 15 July 2004, EL 23583, MLN 13, MLN 1130 and MCNs 317, 523, 1054, 1055, 4072, 4074

Abstract

Following acquisition by the Burnside Joint Venture a data acquisition and drilling database review was conducted to begin the quantification of residual gold ores within the project area using 3D computer modelling of the host geology. During 2003-2004 the joint venture commissioned a consultant to further advance economic and mining studies with the objective of supporting a possible renewal of mining operations. Residual resources identified were flagged for exploratory drilling. Within EL 23583 the company conducted a compilation of previous exploration work. It is apparent that the present location of the Stuart Highway and the Darwin Adelaide Railway reserve seriously impinge on the more prospective eastern half of the licence. An alluvial gold treatment agreement was finalised between the Burnside JV and a local prospector. During the year a reported 401oz gold was recovered from surface mining in MCN 523 and MCN 1055.