Annual exploration report ML 23617 Bons Rush year ending 14 June 2009

Abstract

ML 23617 is a significant tenement which contains gold resource (Bons Rush). It is located approximately 150 km SSE of Darwin and about 22 km NW of Brocks Creek (Zapopan) mine. In this report exploration carried during the first reporting period is presented. ML 23617 was granted to Northern Gold Pty Ltd on 15 June 2006 and expires on 14 June 2031. MLN 23617 underlies rocks of the South Alligator Group which comprises the Koolpin Formation, Gerowie Tuff and Mount Bonnie Formation. The sequence occurs as north-trending tongue which is surrounded by the Burrell Creek Formation. In the project area, the sequence has been folded into south-plunging anticlinal structure (F3) here western limb has been effected by a NW-trending fault. The Zamu dolerite occupies hinge of the fold and appears to have been interlayered within the Koolpin Formation and Gerowie Tuff - an artifact of deformation. Bons Rush is associated with quartz-carbonate veins that dip shallowly (approx 25-30) to the northeast. The mineralised zone is hosted by a carbonated, sulphidised, sericitised and occasionally silicified granophyric phase of the Zamu Dolerite. During the reporting period, GBS Gold Australia was declared under voluntary receivership and assets were placed under care and maintenance. Main activity however was to prepare GBS assets for sale. For this purpose, tenement ranking and evaluation was undertaken. Other activities are reconnaissance visit, technical review of the tenement and report writing and tenement management activities. In 2009-10 reporting year, project area will be explored for gold, uranium and base metals mineralisation. For this purpose, area identified during this review will undergo soil/rock chip sampling along with geological mapping. If encouraging results received, some RAB/RC drilling may also take place.