Annual exploration report for EL 23532 Mount Ringwood, period ending 12 February 2009

Abstract

EL 23532 is a significant tenement in GBS Gold Australia's port folio, which encloses Pelican, North Ringwood, Ringwood and South Ringwood prospects, and abandoned workings that comprise small shafts and pits over a 6km length. During the current reporting period, a technical review of previous geological, geochemical and geophysical data were undertaken, and appraisals of areas indicated that it may contain further gold mineralisation. In the area, mineralisation is hosted by folded and heavily cleaved greywacke and slates of the Burrell Creek Formation, which strikes NNW and dips sub-vertically. Gold mineralisation is generally found in saddle reefs in anticlinal closures, fissure veins in N-S shear zones, bedding parallel veins, and Stock-works. Gold is associated with minor sulphides in quartz veins. Review undertaken during the reporting period has highlighted significant potential of the area and some targets have been selected. It is expected that work commitments to the EL will involve the follow up of anomalous soil geochemistry and geophysical anomalies in the project area. The exploration program for 2009-10 will involve infill soil sampling added by air core drilling which may follow RC and/or diamond drilling.