Annual exploration report on EL 24351 for period ending 22 February 2009

Abstract

EL 24351 is located approximately 160 km SE of Darwin (by road via Ringwood Station) or 190km SE of Darwin (by road via Ban Ban Springs Station). It covers the northern part of the Burnside Granite and was granted to Buffalo Creek Mines NL (50%) and Territory Goldfields NL (50%). It was granted on 23 February 2005 and expires on 22 February 2011, comprising 13 blocks that cover approximately 43.45 km2. EL 24351 underlies a tightly folded sequence of Palaeoproterozoic rocks within the Pine Creek Orogen, 10 to 14km in thickness, laid down on a rifted granitic Archaean basement during the interval ~2.2-1.87Ga. Rocks exposed in the tenement are the Burrell Creek Formation (Finniss River Group), Mount Bonnie Formation (South Alligator Group) and Gerowie Tuff (South Alligator Group), These are intruded by the Burnside Granite toward south and Margaret Granite toward north and north-west. Zamu Dolerite intrudes mainly in the centre of the tenement. These meta-sedimentary rocks are host to many gold deposits in the area. Technical review of the tenement shows that it is characterised by the presence of magnetic ridge which may contain gold mineralisation. This is further supported by the previous geochemical exploration programs which have identified significant geochemical anomalies in the area.During the reporting year, exploration activity was limited to technical review, reconnaissance visit of the area, data interpretation, report writing and data entry into DataShed. The reason for limited work being the company resources focused in developing projects such as Toms Gully, Cosmo Deeps and Maud Creek with a budget of tens of Million dollars. Proposed work would involve detailed geological mapping to ascertain structural complexities and that will be complemented with rock chip/soil sampling program to define geochemical anomalies better. On the availability of drilling rig, some RC/RAB drilling may also take place.