Annual report on EL 25119 Douglas Creek, for the year ending 3 October 2008

Abstract

EL 25119 is located about 140 km south-east of Darwin and some 60 km north-east of the Pine Creek township in the Mt Masson area. The project area is prospective for gold, tin, tungsten, iron ore and uranium mineralisation. It comprises 27 sub-blocks covering 90.24 km2. By virtue of an agreement, GBS Gold Australia acquired exploration rights for the EL on 15 July 2008. EL 25119 is located within the Pine Creek Orogen, which has been interpreted as an intracratonic basin lying on an Archaean basement, and containing a 14 km thick sequence of Proterozoic sediments, accompanied by lesser volcanics, granitic plutons and dolerite intrusions. During the reporting period, a technical review of the tenement was undertaken which identified potential of the project area for gold, uranium and base metals, although some possibility of iron ore also exists. EL 25119 is considered to be strategic in GBS Gold assets due to its multi-commodity potential, and will play an important part in the revival of the company which is under voluntary receivership. Meanwhile the tenement will be kept under review and ranking exercise. If some resources became available a program of geological mapping, geochemical sampling and RC drilling will be undertaken.