Annual exploration report for EL 23583 Pine Creek, for period ending 15 July 2008, Burnside Project

Abstract

Exploration Licence (EL) 23583 is located within the Pine Creek Goldfield where a number of mining tenements are held by GBS Gold Australia Pty Ltd. It is situated approximately 220km SE of Darwin NT, and around 2km south of the Pine Creek Township. EL 23583 was granted on 16 July 2003 to Buffalo Creek Mines Pty Ltd (50%) and Territory Goldfields NL (50%) which are the subsidiaries of GBS Gold. It comprises two blocks that cover approximately 6.67 km2. The tenement overlies the Burrell Creek Formation of the Finniss River Group. The Mount Bonnie Formation sediments crop out further north of the Licence, but are constrained within a fold ('Enterprise fold') that plunges south through EL 23583. Meta-sediments in the project area are intruded by the Table Top, Allamber Springs, and McCarthys Granites and are responsible for the development of contact aureole which contains most of the gold mineralisation. Exploration activities during the reporting period included a peripheral review in addition to a number of field visits to plan future program in the area. GBS Gold Australia plans to explore the adjacent mining tenements on priority basis. It is expected this program will be extended to EL 23583 in the near future. However, during the reporting period, much attention focused to re-commissioning of the Toms Gully gold mine and processing plant, Maud Creek and Cosmo Deeps projects with a budget of 10's of million dollars. Toms Gully processing plant was re-commissioned on 25 July 2008. It is expected that in the following year, a program of exploration will be extended to this tenement. It will involve, geochemical sampling, geological mapping and possible RC/RAB drilling to test the potential of the project area for gold and other types of mineralisation.