Annual exploration report for EL 24058 Yam Creek East Year ending 9 August 2005

Abstract

EL 24058 is located 150 km SE of Darwin, NT and 20 km ESE of Burnside's Brocks Creek mine office. It lies just east of the Yam Creek-North Point mining centre. The tenement is subject to the Burnside Joint Venture, managed by Burnside Operations P/L comprising Territory Goldfields NL and Buffalo Creek Mines P/L. The latter are subsidiaries of Northern Gold NL and Harmony Gold (Australia) Ltd respectively. The licence encompasses a suite of metasedimentary rocks that are part of the Pine Creek Geosyncline sequence being a cyclic sequence of turbidites and mudstones, cherty horizons and tuff rich units. This is the first year of the licence and the annual expenditure for the block was set at $4,000.00. 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, Fountain Head, Cosmo Howley, and Woolwonga. Underground development and diamond drilling has been carried out at the Zapopan Mine. Work on EL 24058 focused on remote sensing and interpretation to establish its ranking within the overall Burnside region tenements. It was concluded that the tenement ranks low within the joint venture schedule as the ground lacks most of the structural parameters that favour gold deposition in the Pine Creek region. The database validation and review of geochemical records in the area of EL 24058, including adjacent EL 23540 commenced during late 2004. With reporting costs added, the expenditure on remote sensing work amounted to $1,000.00.