Annual exploration report Golden Wall year ending 8th December 2006 EL9588

Abstract

EL 9588 is located approximately 130 km SSE of Darwin and 4 km west of the Cosmopolitan Howley mine. The tenement was granted in December 1996 to Northern Gold N.L. The company carried out digital data studies and several geochemical rock chip sampling and soil sampling programs. Only low level anomalies were obtained over what is interpreted as schistose quartz-greywackes of the Burrell Creek Formation and Mt Bonnie Formation. This result was considered to have downgraded the gold potential of the tenement. In April 2002, the tenement was included in a wider joint venture agreement between Territory Goldfields NL and Buffalo Creek Mines P/L. The joint venture focused its exploration expenditure on diamond and RC drilling the Cosmo Howley open pit and underground resource. Other drilling has been completed at Yam Creek-North Point, Fountain Head and Woolwonga. During 2005 work involved reporting and reviewing structural controls of the tenement through remote sensing interpretation. During 2006 work completed over EL9588 consisted of 1. Planning for the upcoming field season 2. Work is continuing to incorporate EL9588 with SEL24532 to form a new SEL. The SEL number is not known at the time of writing the report. 3. Administrative Duties 4. Report Preparation Work in the region has been deferred because company resources have been concentrated on the recommencement of mining in the district by GBS Gold. Commissioning of the of the dual-mill 2.5Mtpa Union Reefs CIL gold plant in theNorthern Territory commenced as of September 2006. The two initial open pit (Fountain Head and Rising Tide deposits) ore sources came online mid September and High Grade ore was sourced from the Brocks Creek Underground Mine(Zapopan) in late September. ?Gold production is targeted to increase steadily over the next nine months to an annual rate of approximately 150,000 ounces in mid 2007 and to further increase with the mining and treatment of refractory gold oresto an annual rate of approximately 250,000 ounces in 2008.'