Annual exploration report EL 23543 Burnside Year ending 23 March 2005

Abstract

This is the second year following grant of the licence. During the year an application was made to include all the blocks comprising EL 23543 within SEL 24532. This SEL, in part replacing late SEL 9591, has not yet been granted. The expenditure covenant for 2004-05 was $800.00. Northern Gold NL, and since April 2002 the Burnside JV, have been actively exploring the Burnside region since the late 1980's. Work to date has been focused on establishing open pit resources through RC drilling at Yam Creek, Mottram's, Chinese South Extension, Fountain Head and Woolwonga. Underground development and diamond drilling has been carried out at the Zapopan Mine and at Cosmo Howley diamond core drilling has so far extended the underground resource to 1 million ounces. During 2004-2005, exploration on grass roots stage tenements such as EL 23543 has been subordinate to that on the more gold endowed JV tenements in the Burnside Region. Effort has been mainly expended on extending mineable gold deposits, particularly with the purchase of the Union Reefs gold treatment plant in August 2004. A technical review last year was undertaken with a view to ranking the property in the context of other Burnside JV gold opportunities. This review ranked EL 23543 as low to medium in the short term. Exploration during 2004-2005 comprised technical reporting and review. The tenement is subject to incorporation into recent SEL application 24532. This expenditure amounted to $875.00.