Annual exploration report Yam Creek/North Point Group year ending 31 December 2007 MLN 214, 341, 343,349, 823-832, 858-863, 940, 1112. MCN 46-47, 49-50, 624-625, 898-899, 4428, 4430, 4432, 4434.

Abstract

Yam Creek/North Point gold district is located approximately 150km SSE of Darwin. It mainly covers historical Yam Creek alluvial and hard rock gold mining field which was discovered in 1872. Gold mineralisation occurs as quartz vein systems, hosted by structurally prepared sites within cyclic greywacke-mudstones of the Palaeoproterozoic Mount Bonnie Formation. Episodic gold production has been reported from underground as well processing of alluvial/elluvials cover material. The area has been the subject of modern gold exploration since the late 1970's. Exploration, post 1988 was managed by Northern Gold NL and its subsidiaries and Acacia Resources (AngloGold) subject to option agreement. Since formation of the joint venture the Yam Creek and North Point area has been subjected to RC drilling programs that were designed to prove up gold resources that could supplement mill feed for a full scale mining operation in the area. During 2003 a geo-statistical consultant was commissioned to conduct a resource study on the North Point and Princess Louise gold deposits. During 2007, a campaign conducted by the Exploration Department drilled 98 RC and AC holes for 2685 metres. However, assay data of the samples retrieved was quite discouraging and none of the samples returned any significant gold mineralisation. A second drilling program was carried out by Resource Definition Department. During this campaign, 29 RC and 90 AC holes were drilled for 3447 metres. Significant gold mineralisation was encountered in many of samples which helped to improve the previous ore resources in the area. During 2008 a program of data evaluation, block modelling and ore reserve optimisation will take place. In addition infill RC/diamond drilling may also be carried out to firm up the ore resource inventory.