Annual exploration report Mount Bonnie Group MLN 342, MLN 346, MLN 405, MLN 459, MLN 811, MLN 1033, MLN 1039, MCN 504, MCN 505 and MCN 3161 for the period ending 31 December 2006

Abstract

The Mt Bonnie Project is located 145km SE of Darwin NT and 11km ENE of the Hayes Creek road house. Probably, it was discovered during 1870s as part of the gold rush. First mining activity was recorded between 1913 and 1916 but no stoping was carried out. Intermittent mining activity took place from time to time and perhaps the most notable is in 1983, when a total of 110 000t of ore at 7g/t Au and 230 g/t Ag was mined and processed. The tenement group comprises 108.75 hectares and is situated within Pastoral Lease No. 903, Douglas, held by Tovehead Pty. Ltd. The titles were originally granted to Zapopan N.L. and subsequently transferred to Dominion Gold Operations Pty. Ltd. The ground is now held by Territory Goldfields N.L, which is wholly owned subsidiary of GBS Gold Australia Pty Ltd. The deposit is hosted by Mt Bonnie Formation that lies within the upper part of the South Alligator Group. Rock types associated with the mine sequence are interbedded shale, siltstone, greywacke, dolomite and minor pebble breccia. A major stratigraphically concordant sill of the Zamu Dolerite underlies the mine sequence. The Mt. Bonnie lode system dips 40 degrees west and is up to 15m thick. Originally a surface gossan could be traced discontinuously for 100m. During the reporting year, a technical review of the base metal mineralisation present in the Mount Bonnie project was undertaken along with data integration into DataShed, which has been on-going on a regional basis. This review identified the potential of further base metal mineralisation in the area which could provide sufficient tonnage along with Iron Blow and other prospects, to sustain a viable economic operation. In the year 2007, all the data from Mount Bonnie, Iron Blow and other prospects will be assessed for a viable operation.