Annual exploration report EL 23540 Saunders Creek Year ending 16 February 2005

Abstract

EL 23540 is located 150 km SE of Darwin, NT and 20 km ESE of Brocks Creek. The tenement is subject to the Burnside Joint Venture, managed by Burnside Operations P/L comprising Territory Goldfields NL and Buffalo Creek Mines NL. The latter are subsidiaries of Northern Gold NL and Harmony Gold (Australia) P/L respectively. The licence encompasses a suite of metasedimentary rocks that are part of the Pine Creek Geosyncline sequence and lies just east of the gold and base metal mineralised localities of Iron Blow and Yam Creek. This is the second year of the licence and the annual expenditure was set at $1,100.00. 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. Development ore was treated at Union Reefs mill. Work on EL 23540 has been subordinate to activity on other JV tenements as the emphasis has been on establishing gold resources at established mineralised prospects. A large volume of unsorted hard copy archive of historic exploration data from Dominion Mining Ltd and Territory Goldfields NL exists at the Brocks Creek library. Sorting and shelving of this material has commenced. The database validation and review of geochemical records in the area of EL 23540 commenced during 2004. Conclusions have not been reached as yet. With reporting, the expenditure on geological activity amounted to $1,150.00.