Annual exploration report for EL 24403 'Mt Douglas', for period ending 7 September 2007

Abstract

EL 24403 is situated 120 km SE of Darwin. Vehicle access is limited to the dry season tracks from the Ringwood Station homestead to the tenement. The tenement falls on the Pine Creek 1:250,000 sheet and on the McKinlay River 1:100,000 sheet. The tenement was granted on 9 September 2005 to a consortium of Teelow (34%) Orridge (33%) and Pinniger (33%), and expires on 8 September 2011. It comprises 227 blocks that cover approximately 757 sq. km. Terra Gold Mining Ltd a subsidiary of GBS Gold Australia Pty Ltd entered into an optional agreement with the title holders on 26 September 2007 to explore the tenement. EL 24403 is located within the Pine Creek Orogen, a tightly folded sequence of Palaeoproterozoic rocks, 10km to 14km in thickness, laid down on a rifted granitic Archaean basement during the interval ~2.2-1.87Ga. The sequence is dominated by pelitic and psammitic (continental shelf shallow marine) sediments with minor interlayered tuff units. Rocks of the Burrell Creek Formation cover much of the area. Subordinate lithologies of the South Alligator River Group such as the Koolpin Formation, Mount Bonnie Formation and Gerowie Tuff area are also present. In places the Zamu Dolerite dykes intersect the Palaeoproterozoic stratigraphic sequence. Toward south-east, project area has been intruded by the Margret Granite. Geological, geophysical and geochemical information suggests that the project area has significant potential for gold mineralisation. However, there is a need to work a systematic exploration program which will involve locating the anticlinal structures precisely with the help of detailed magnetic surveys. That should follow RAB/RC drilling to test the targets for gold mineralisation. During the reporting period, data validation and in-depth technical review were undertaken which identified further gold potential of the project area. A brief summary of activities during the reporting year exploration activities included technical review, data validation, and reconnaissance visit and report preparation.