Annual exploration report for EL 23583 for the period ending 15 July 2009

Abstract

EL 23583 is one of the significant tenements with in GBS Gold Australia's portfolio. It is situated approximately 220 km SE of Darwin NT and around 2 km 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 Australia. 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 of 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. During the reporting period, GBS Gold Australia was declared under voluntary receivership, and all exploration and mining projects were placed under 'Care and Maintenance'. The tenement has a prospective geology and may contain significant gold resources similar to that of adjacent gold deposits such as Enterprise, Czarina and Gandy's Hill. During the reporting period, only a peripheral review of the tenement was undertaken and work completed included reconnaissance visit, technical review, planning for up-coming field season and report writing. In 2009-10 reporting year, project area will be explored for gold and base metals mineralisation. For this purpose, selected parts of the tenement will undergo soil/rock chip sampling along with geological mapping. If encouraging results received, some RAB/RC drilling may also take place.