Annual exploration report Golden Dyke Group MLN 794, MLN 795, MCN 1456, MCN 1457, MCN 1458, MCN 1459, MCN 1460, MCN 1461, MCN 1462 and MCN 1463 Year ending 31 December 2005

Abstract

The Golden Dyke Group tenements are located along the western limb of the Golden Dyke Dome, a fold structure associated with historic gold mines discovered and initially developed between 1872 and 1937. It lies approximately 140 km SE of Darwin, NT and 14 km SE of the Brocks Creek mine office. The tenements have been actively explored for gold by several companies that utilised drilling, trenching, pitting, dozing and geochemical methods. A period of gold production from open pits and shafts in the region occurred up to 1984. The Burnside Joint Venture was finalised in April 2002 between subsidiaries of Northern Gold NL and Harmony Gold Australia Ltd. This dealing amalgamated a schedule of joint tenements including the Golden Dyke group. The JV was formed to identify and treat gold resources within a 30 km radius of the jointly owned Brocks Creek Mill. This mill was sold in August 2004 to Tanami Gold NL and the mill at Union Reefs was purchased by the joint venture in the same month. All exploration activity has been under the management of Burnside Operations P/L. This will change in 2006 following the sale by Harmony Gold of its 50% equity in the JV to Northern Gold in September 2005. During 2003 work on the Golden Dyke tenement group comprised a remote sensing compilation using SPOT images and AGSO geology. The area is at a historically mature stage of exploration and easily accessible oxide gold resources in the area had already been extracted by open pit prior to 1985. As a consequence the group is ranked at a low-medium level with the scope to generate further gold resources in the future. In the Burnside Region, Joint Venture activity has been focused on bringing the nearby Zapopan gold mine into production and conducting resource development drilling on other gold deposits in the area. These included Bons Rush, Yam Creek, North Point, Fountain Head, Woolwonga and targets on the Cosmo Howley Line. Extensive core drilling programs commissioned by the JV at Cosmo Howley have so far outlined 1.0 million ounces of gold. During and 2005 work was again focused on advanced stage properties in the area. The acquisition of the Union Reefs mill has already generated several campaigns of exploratory drilling work at the JV's Pine Creek tenements. During the year activity at Golden Dyke Group was confined to reviews and reporting. Expenditure was reported as $575.00. During 2006 it is expected that the area will be subjected to further technical review and ranking by the new owner, GBS Gold Australia P/L.