Annual report for EL 24403 'Mt Douglas' Burnside Project for the period ending 8 September 2009

Abstract

EL 24403 is one of significant tenements within GBS Gold Australia's portfolio which is situated 120 km SE of Darwin. The tenement falls on the Pine Creek 1:250,000 sheet and on the McKinlay River 1:100,000 sheet. It 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 7572. 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 the south-east, the project area has been intruded by the Margret Granite. During the reporting period, GBS Gold Australia went into voluntary administration and all exploration and mining assets were placed under care and maintenance. As result, EL24403 along with other tenements was reviewed for their potential and valuation. This review identified multi-commodity potential of the tenement. In addition some limited on-ground exploration activity was undertaken, including ground-truthing, radiometric survey and examining of scarce outcrops in the area. In 2009-10 reporting year, the project area will be explored for gold and uranium mineralisation. For this purpose, the area identified during this review will undergo soil/rock chip sampling along with geological mapping. A high resolution geophysical data acquisition is also planned. If encouraging results received, RAB/RC drilling will also take place.