Annual report for EL 25119 Douglas Creek for the year ending 3 October 2009

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, base metals and uranium mineralisation. The tenement was granted to Orridge (33.40%), Clarke (33.30%) and Teelow (33.30%) on 4 October 2006 for a period of 6 years and will expire on 3 October 2012. 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 Top End Orogeny, the sequence was deformed and metamorphosed into NW-trending folded structures, which plunge gently toward south-east. Folding and faulting during Orogeny have created zones of dilations which are important structures for hosting a variety of mineralisation. During the reporting period, GBS Gold went into voluntary administration and all assets were under care and maintenance. The main activity was confined to a review, tenement ranking and evaluation in order to prepare all assets for sale. In April 2009 Crocodile Gold Australia announced to acquire all assets held by GBS Gold Australia (liquidated). Currently, regulatory and statuary processes are underway to transfer these assets to Crocodile Gold Australia. In the next reporting year a program of geological mapping, geochemical sampling and possible Aircore/RAB drilling will be undertaken to fully assess the mineral potential of the area.