Annual exploration report on MLN 41 for period ending 31st December 2007 Moline Northern Territory

Abstract

Located in the Mount Evelyn (1:250 000) sheet, about 5 km NW of the Moline Gold Field, it covers the North Evelyn base metal prospect. M Teelow acquired the tenement in 2003, covering 8.9 hectares, and is surrounded by EL 22970 which is also managed by GBS Gold Australia Pty Ltd. The tenement is situated in the northern Part of Mount Evelyn 1: 250 000 sheet (Pine Creek Orogen), which is characterised by open to tight, upright N to NW-trending folds within the Palaeoproterozoic meta-sedimentary and volcanic rocks. MLN 41 and surroundings is host to gold and base metal mineralisation. Geological setting of the area shows that tenement and surroundings (EL 22970, GBS Gold Australia Manager) has significant potential for gold and base metal mineralisation. Presence of the Koolpin Formation and Allamber Springs Granite further point towards the presence of uranium mineralisation as found on the western side of the granite body. During the reporting period, much attention was focused in developing deposits such as Cosmo Deeps, Toms Gully and Maud Creek. In addition, GBS Gold Australia has embarked on the review of base metals portfolio which will proceed to their development. Already, drilling program planning is underway for Iron Blow and Mount Bonnie deposits. It is expected that following this program other base metals will undergo a full exploration program to compliment the base metal resource base under GBS Gold Australia's control. A peripheral review of the Mt Evelyn base metal with the MLN 41 was undertaken in order to asses the potential of the area. It is expected that after Mt Bonnie and Iron Blow, Mt Evelyn prospect will be tested fully for its base metal potential. MLN 41 is a small tenement standing alone and surrounded by EL 22970 (GBS Manager). It is also possible to explore this tenement in conjunction with EL 22970. An anticipated program for the tenement includes ground truthing, soil sampling and RC drilling.