Annual exploration report EL 23431 Mt Bonnie West year ending 19th December 2007

Abstract

EL 23431 is centred 140km SE of Darwin, NT and 14km SE of Brocks Creek. It is part of the Burnside Joint Venture, managed by Burnside Operations P/L comprising Territory Goldfields NL and Buffalo Creek Mines NL. The latter are subsidiaries of Northern Gold NL which was subsequently taken over by the present managers GBS Gold Australia Pty Ltd. This is the fith year of the licence following grant and the annual expenditure was set at $2000 for the four block group. The tenement encompasses a suite of metasedimentary rocks belonging to the Lower Proterozoic South Alligator Group. The Group is part of the Pine Creek Geosyncline sequence and is contiguous with the base metal and gold mineralised localities of Mt Bonnie and Golden Dyke. The Hayes Creek Fault strikes north east through the centre of the prospect and is important in the localisation of gold mineralisation. Work on EL23431 has been subordinate to activity on other JV tenements as the emphasis has been on establishing gold resources at established mineralised prospects. This emphasis has been consolidated by the purchase of the Union Reefs Mill in August 2004. It has escalated reviews of advanced stage resources with a view to early re-commissioning of the plant.