Third annual exploration report EL 24058 Yam Creek East year ending 9 August 2007

Abstract

EL 24058 is located 150km SE of Darwin, NT and 20km ESE of Burnside's Brocks Creek mine office. It lies just east of the Yam Creek-North Point mining centre. The licence encompasses a suite of meta-sedimentary rocks that are part of the Pine Creek Geosyncline sequence being a cyclic sequence of turbidites and mudstones, cherty horizons and tuff rich units. During 2006-2007, a program of soil sampling was undertaken (still in progress) to assess the potential and identify targets for drilling. So far, 141 soil samples have been retried and analysed for Au, As, Cu Pb and Zn. Almost all samples assayed are low in gold concentration except sample no. EX0137 which gave a value of 1.33 ppm Au. The sample is also high in As, Cu, Pb and Zn. In addition, there are 27 samples which have Au values above 20 ppb. The data will be analysed further to identify anomalous zones for drilling. Current soil sampling will be completed during 2007-08. Data collected so far will be processed and reviewed to generate targets for drilling. In addition some additional geological mapping will be undertaken.