MCN 4293-4296 and MCN 4956-4958 Bridge Creek North Annual exploration report for year ending 26 June 2005

Abstract

The tenements that comprise the Bridge Creek North report group are located approximately 35.0 km SE of Adelaide River NT and are contiguous with the Bridge Creek prospect to the south. The mineral claims cover the northern continuation of the Howley Anticline, approximately 12 km north along strike from the Cosmo Howley Gold Mine and 12 km NW of the Brocks Creek (Burnside Operations P/L) mine office. The geology of the area is similar to that found at the Cosmopolitan Howley gold mine, and is dominated by north striking asymmetric folds within the South Alligator Group and the Finniss River Group of the Lower Proterozoic Pine Creek Geosyncline. Pre orogenic dolerite sills are interleaved with the mineralised sequence. North east striking dextral faults intersecting the fold axes along with west dipping reverse faults have been important in localising gold mineralisation. The tenement group was included in a joint venture agreement between Territory Goldfields NL, Camelot Northern Territory Ltd and Buffalo Creek Mining NL that was finalised in April 2002. The Burnside Joint Venture was initially formed with the objective of commencing gold mining centred on the Brocks Creek gold treatment plant. To realise this objective the joint venture has undertaken extensive RC and diamond core drilling of local priority targets. In addition the development of underground resources at the Zapopan decline in 2003 has been supplemented by ongoing diamond drilling and modelling work at the nearby Cosmo Howley project. During 2004 the JV sold the Brocks Creek plant and purchased the larger, more modern Union Reefs mill and project tenements. Exploratory work carried out by Territory Goldfields NL prior to formation of the Burnside JV showed that the Bridge Creek North group tenements host gold occurrences that are presently sub economic. They have been ranked low on the Burnside priority listing. The best of these includes the Ios resource that has been encroached upon and possibly sterilised by the new Darwin-Adelaide Railway. Further reviews by the Burnside JV confirmed their low ranking compared with other Burnside JV targets. Development of these lesser prospects is to a degree dependent on the economic success of the Zapopan and Cosmo Howley projects that are now at an advanced stage. Pending favourable economic outcomes for exploration at the Burnside JV operation, work on the Bridge Creek North group mineral claims has been limited to data review 2 and reporting. The adjacent Bridge Creek gold resource that is also currently ranked as economically marginal, will continue to be further evaluated and reinterpreted as part of the updated ranking process. The more distant location of the Union Reef mill (70km haul) will adversely impact on low grade resources in the Bridge Creek area.