Annual exploration report EL 23536 Mt Osborne Year ending 28 July 2005

Abstract

Work on EL 23536 has been subordinate to activity on other JV tenements as the emphasis has been on establishing gold resources at established mineralised prospects with a view to production using a local treatment facility. The joint venture purchased the Union Reef mill and tenements in August 2004, which would allow rapid commencement of mining and treatment of Burnside's advanced stage gold deposits already proven by RC drilling and modelling. Expenditure during 2004-05 comprised further structural interpretation with a view to prioritising exploration targets. Work included a reporting component that is a natural extension of work on adjacent MLN 1139. This amounted to $1,320.00. Parts of the tenement are optimally located to cover extensions to prospective gold-bearing structures that are known within the Brocks Creek and Fountain Head tenements. The tenement requires reconnaissance screening for favourable lithologies and structures supported by rock chip sampling. Work has started cataloguing and interrogating the historical data in the Brocks Creek library with the objective of advancing the level of understanding of both previous work and the prospectivity of the ground.