Annual exploration report for ML 23617 Bons Rush (not MLN as in title) year ending 14 June 2007

Abstract

ML 23617 is located approximately 150 km SSE of Darwin and about 22 km NW of Brocks Creek (Zapopan) mine. In this report exploration carried during the first reporting period is presented. ML 23617 was granted to Northern Gold Pty Ltd on 15 June 2006 and expires on 14 June 2031. MLN 23617 underlies rocks of the South Alligator Group which comprises the Koolpin Formation, Gerowie Tuff and Mount Bonnie Formation. The sequence occurs as north-trending tongue which is surrounded by the Burrell Creek Formation. In the project area, the sequence has been folded into south-plunging anticlinal structure (F3) here western limb has been effected by a NW-trending fault. The Zamu dolerite occupies hinge of the fold and appears to have been interlayered within the Koolpin Formation and Gerowie Tuff ? an artifact of deformation. Bons Rush is associated with quartz-carbonate veins that dip shallowly (~25-30) to the northeast. The mineralised zone is hosted by a carbonated, sulphidised, sericitised and occasionally silicified granophyric phase of the Zamu Dolerite. During the reporting period a comprehensive technical review of the ML 23617 undertaken in order to plan exploration activities and to provide in the ranking exercise. Exploration activities included technical review, data validation, reconnaissance visit report preparation. During the technical review significance of the ML 23617 was realised which contains an important Bons Rush prospect which has the potential to produce substantial quantities of ore to feed the gold mill located at Union Reefs. However, at present, Bons Rush gold prospect has been place on low priority because during 2007-08 much of the development activity will focus on Cosmo Deep and Maud Creek projects with a budget of $10's of million.