Annual report on SEL 10012 Mt Ringwood Project for reporting period 27-11-2006 to 26-11-2007

Abstract

SEL 10012 (Substitute Exploration Licence) is located approximately 110 kilometres southeast of Darwin, and 35km east of Adelaide River on the McKinlay River (1:100 000) and Pine Creek (1:250 00) sheets. SEL 10012 was granted on 28 November 2003 for a period of four years, with two further extensions thereafter. In September 2007, a renewal application for further two years was submitted to the Department of Primary Industry and Fisheries. SEL 10012 is situated within the Pine Creek Orogen which is a folded and metamorphosed sequence of Palaeoproterozoic pelitic and psammitic sediments, with interlayered cherty tuff units. These rocks have been intruded by the late-orogenic Palaeoproterozoic granites, causing wide spread contact/thermal aureole which contains most of the gold mineralisation in the Orogen. Much of the geology of the tenement is dominated by the Burrell Creek Formation, transected by the Pine Creek Shear Zone - an important structural feature for the localisation of gold mineralisation in the area. In recent years exploration and proposals for further work have focused on two gold anomalies at North Goodall and Cookies Corner, and now another area appears to be highly prospective in light of the regional structural model. The southeastern blocks of SEL 10012 may contain new target zone. GBS Gold Australia is planning a large exploration program in the Mount Ringwood area which also includes SEL 10012. During the technical review, prospective areas were selected. It is expected that systematic soil sampling will cover much of the area and selected areas will be drill tested.