Annual exploration report for EL 24405 Yam Creek West, for the period ending 5 May 2006

Abstract

EL 24405 is located to the west of the Princess Louise line of mineralisation, in an area of poorly subcropping Burrell Creek Formation sediments. The tenement was granted to Buffalo Creek Mines Pty Ltd (50%) and Territory Goldfields NL (50%) which was part of the Burnside JV. In April 2006, GBS Gold Australia Pty Ltd acquired 100% of the Burnside JV. Work done during Year 1 of tenure included a review of work by previous explorers, plus data acquisition (into MapInfo) and initial review of prospectivity of the tenement. This work indicated that the area may contain NW-trending structures, as noted on the TMI. Earlier workers interpreted an arcuate (folded) syncline within the tenement. The work also indicated that most of the tenement is covered by colluvium, and surface geochemical sampling would probably be unsuccessful. Planned work for Year 2 includes reconnaissance mapping of outcrops in the western area of the tenement to determine structural indications. RAB or vacuum drilling would be desirable, but probably unlikely before Year 3 due to rig availability.