Annual exploration report for EL 24403 Mt Douglas, for period ending 8 September 2008

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. During the reporting period a technical review of the project are was undertaken which recommended to focus on gold and uranium exploration. GBS Gold Australia will conduct gold exploration whereas Thundelarra Exploration Limited will explore for uranium mineralisation. In this regard already airborne magnetic and radiometric data are being processed in order to provide interpretation prelude to target generation for gold and uranium. This work is progressing satisfactorily and will be reported next year. During 2008-09, interpretation of geophysical data (including remote sensing data) will continue to select targets for further evaluation. Selected targets will undergo geochemical sampling and RC drilling program.