Mount Ringwood Project SEL 10012 2004/05 Annual report 27 November 2004 to 28 November 2005

Abstract

SEL 10012 is located approximately 110 kilometres southeast of Darwin, and 35 km east of Adelaide River on the Margaret River (14/2-I) 1:50,000 scale and the Mount Ringwood (14/3-IV) 1:50,000 scale map sheets. SEL 10012 covers the areas which originally comprised four active exploration licences held by Northern Gold NL ('Northern Gold') and its subsidiary companies. These exploration licences were EL 8573, EL 8780, EL 9122 and EL 8887. SEL 10012 was granted on 28 November 2003 for a period of four years, with the ability for two further time extensions thereafter. On the 9th September 2005 a waiver of reduction of SEL 10012 was granted for 12 months enabling Northern Gold NL to retain 22 blocks until 28 November 2006. During the report period Northern Gold NL completed a program of costeaning within the western granticular blocks of the tenement targeting the prospects of North Goodall and the C6 Prospect. One costean of 200m length was dug at North Goodall and two costeans totalling 145m were dug at the C6 Prospect. During the reporting year the compilation and validation of the existing digital assay data was undertaken. The digital data is presently archived as a series of excel and csv tables pertaining to the previous exploration licences or prospects and by the type of sampling method. This data will be merged into the current DataShed database which will encompass all Northern Gold related projects as part of the Burnside JV in the Northern Territory. The North Goodall prospect was identified as a high grade gold soil and rock chip anomaly and lies along the northern strike of the Goodall pit. The costean was designed to identify the source of the anomalism and to define possible associated mineralising structures to help better target future drilling programs. The C6 Prospect was a prospect previously identified by Western Mining Corporation (termed 'C6') and was RC drill tested at depth. The costeaning was designed to test for the extent of surface gold mineralisation and associated structures. A total of 345 costean rock chip samples; 200 from North Goodall and 145 from C6 Prospect were submitted to North Australian Laboratory (NAL) in Pine Creek for Au analysis using Fire Assay digest with AAS finish, FA50 method. NAL also carried out As analysis by G300A. The assay results were disappointing. The best intersection at North Goodall was 3m at 0.39 ppm Au associated with narrow quartz veinlets within a saprolitic horizon. The results received at North Goodall downgrade the soil and rock-chip anomalies. At the C6 Prospect the best intersection was a 10m zone at 0.38 ppm Au associated with a zone of massive quartz veining within a strongly sheared siltstone/sandstone unit. The costean results of the C6 Prospect confirm the mineralised structure but indicate gold depletion at surface.