Annual exploration report MCN 3705, MCN 3706, MCN 3707 and MLN 1103 for year ending 25 April 2004, Woolwonga Group

Abstract

The Woolwonga tenement group is centred on the open pit mine of that name, 130 km SE of Darwin, NT and 16km NE of the Brocks Creek treatment facility. The Woolwonga open pit mine was operated by Dominion Mining Limited until 1995. Following extensive exploratory drilling and a feasibility study, the company estimated a recoverable mining reserve of 2.1Mt @ 2.78g Au/t with the ore treated at the Cosmo Howley mill. The tenements were acquired by Northern Gold NL. following completion of the mining phase and rehabilitation of the mine site, Subsequently Northern Gold NL subsidiary, Territory Goldfields NL entered into a joint venture agreement with Buffalo Creek Mines P/L in April 2002, whereby the Woolwonga tenement group, along with a wider schedule of jointly held mining assets, was to be managed by Burnside Operations P/L The mine is located on the 310 degree striking axial zone of the Woolwonga Anticline, formed within Lower Proterozoic clastic sediments and dolerite sills of the Mt Bonnie Formation. The axial zone is cut by mineralised 335 degree striking fracture sets. Combining this with the effects of axial planar foliation and hinge zone detachment structures, interacting with competency contrast planes between silt-mudstone and greywacke, a complex of stockwork style quartz-sulphide vein network and saddle reef style bodies has developed. During 2003-2004 Burnside Operations P/L conducted a program of RC drilling on the Empire Target, a SE strike extension of the deposit within MLN 1103. This work comprised 6 holes for an advance of 420m. Significant gold intercepts were reported from SET004, including 10m @ 6.97g/t Au from 73m. Downhole surveys using Televiewer were carried out on 3 holes.