Annual exploration report EL 9588 Golden Wall Year ending 8 December 2005

Abstract

EL 9588 is located approximately 130 km SSE of Darwin and 4 km west of the Cosmopolitan Howley mine. The tenement was granted in December 1996 to Northern Gold N.L. The company carried out digital data studies and several geochemical rock chip sampling and soil sampling programs. Only low level anomalies were obtained over what is interpreted as schistose quartz-greywackes of the Burrell Creek Formation and Mt Bonnie Formation. This result was considered to have downgraded the gold potential of the tenement. In April 2002, the tenement was included in a wider joint venture agreement between Territory Goldfields NL and Buffalo Creek Mines P/L. The data review that followed the agreement confirmed its low gold potential. The joint venture focused its exploration expenditure on diamond and RC drilling the Cosmo Howley open pit and underground resource, where the most recent company announcements have reported a global resource exceeding 1 million ounces. RC programs were also completed at Chinese South Extension and Mottrams just east of the EL 9588. This work outlined potentially economic open pit gold resources. Other drilling has been completed at Yam Creek-North Point, Fountain Head and Woolwonga in the search for economic open pit ores. Underground development in readiness for production was also installed at the Zapopan gold mine near Brocks Creek. The purchase of the Union Reefs mill and underlying tenements in August 2004 together with the consolidation of the JV equity in September 2005 stands to accelerate the development of all resources in the Pine Creek and Burnside Regions. During 2005 work was confined to reporting and reviewing structural controls of the tenement through remote sensing interpretation. This work cost $1,050.00. In 2006 the new owners of the Burnside tenements (GBS Gold) are expected to address their assets in terms of their relative merits and holding costs. As a low-rank tenement EL 9588 is initially unlikely to attract strong exploration interest compared to other gold assets in the region. Nevertheless it remains part of the regional tenement asset base subject to later corporate decisions. Work on a 2006 technical review by GBS Gold is costed at $1,500.