Annual exploration report Mount Bonnie Group MLN's 342, 346, 405, 459, 811, 1033, 1039, MCN's 504, 505, 3161 for period ending 31 December 2007

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 110 000 t 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 ongoing data compilation and validation. Survey work in the area has also been carried out to re-establish local grids and control points as well as calculating the transformation details required to report spatial data in MGA coordinates. Reviews to date of existing drilling data and historical resource estimates have led to a renewed interest in the Mt Bonnie deposit and a significant drilling program is planned for 2008 develop the historic resource into a mineable reserve. A minimum expenditure for Mount Bonnie group of tenements is set at $16,000.00 which could rise significantly if the diamond drill program is conducted on the identified targets.