Annual exploration report year ending 28 February 2004 Fountain Head MLN 4, 206, 1020,1034, MCN 1172, 4785

Abstract

The Fountain Head tenement group is centred 135km SE of Darwin, NT and 10km east of the Brocks Creek gold treatment plant site, on the Ban Ban (14/3-III) and Burnside (14/2-II) 1:50,000 sheets. Gold mineralisation is hosted by units of the Mount Bonnie Formation of the South Alligator Group and is associated with quartz-pyrite-arsenopyrite veins. These occur in dilatant zones in the axis of a major SE plunging asymmetric anticlinal fold. Historically, an extended alluvial mining period was followed by trial open pit extraction under the management of Dominion Mining in 1995. Modern exploration has consisted of trenching, RAB drilling, RC drilling, diamond drilling and resource estimates. Following the formation of the Burnside Joint Venture in April 2002, management was placed under Burnside Operations P/L. The objective of the joint venture is to explore, develop, mine and treat gold ores within the joint venture area of influence. Fountain Head is ranked as one of the more important tenement groupings in the Joint Venture schedule. In 2003 the Fountain Head deposit was subjected to a more detailed technical review and preliminary geological modelling to assist in drill planning for testing the principal mineralised strike in 2004. An interpretation of a Landsat SPOT image was carried out in parallel with annual reporting and added to the understanding of the geological setting of the Fountain Head gold deposits.