Annual exploration report Davies Prospect MCN 4267 Year ending 11 May 2005

Abstract

MCN 4267 is located 15 km southeast of the Brocks Creek Mill Site and 500 m north of the Golden Dyke Open Pit, on the Burrundie 1:50,000 sheet. The Golden Dyke region, contains some of the earliest worked gold deposits in the Northern Territory, and was first prospected for alluvial gold in 1872. Geologically the area is underlain by units of the Lower Proterozoic Koolpin Formation, the lowest member of the South Alligator River Group. A small resource of gold mineralisation outlined by RC and diamond drilling has a 60 m strike length, averages 2 m in width and is estimated at 49,000t @ 2.58g Au/t. The deposit is concordant and tabular, hosted by a quartz veined, sulphidised carbonaceous shale that dips steeply west. It is possible the shale has a refractory component. Structurally the deposit is linked to an arcuate system of reverse faults that link Langleys, Golden Dyke and Davies on the western limb of the Golden Dyke Dome. These reverse faults exploited an arcuate parasitic anticline that further north is termed the Good Shepherd. Fault cross-lineaments of small displacement, striking NW and NE have been interpreted as further focusing gold mineralisation. The 9.58ha tenement is now managed by the Burnside Joint Venture through Burnside Operations Pty Ltd. The tenement is small and is at an advanced stage of exploration maturity and comprises part of the joint venture's schedule of gold resources that are planned for mining and treatment when economic conditions allow. Exploration work has been continuing at a consistent level at the joint venture's Cosmo Howley, Fountain Head, Zapopan and Woolwonga properties. The Davies Prospect is reviewed constantly in line with changing economic circumstances. At present, due to its small size, narrow widths and location, it is relatively low in the priority ranking table. Its relative proximity to the Union Reefs mill acquired in August 1994 may improve its economic setting. During the year remote sensing data was interpreted to identify lineaments controlling mineralisation at Davies. Annual reporting required further technical input.