Annual exploration report EL 24944 for period ending 3 October 2007 Towns River

Abstract

EL 24944 is located within McArthur Basin about 600 km south-east of Darwin and forms part of the Towns River group of tenements held by GBS Gold Australia Pty Ltd. Terra Gold Mining Pty Ltd (subsidiary of the GBS Gold Australia Pty Ltd) applied for the EL 24944 on 19 September 2005 and was granted on 4 September 2006 for a period of 6 years, which expires on 3 September 2012. EL 24944 lies on the eastern part of the McArthur Basin, mainly on the western side of the Batten Trough, within the Bauhinia Shelf. Sediments of the Roper Group cover most of the tenement with sporadic outcrops of Nathan Group, McArthur Group and Tawallah Group sediments. A technical review of the previous work has been carried out in order to assess the prospectivity of the project area. Work completed during the reporting period included, technical review of the tenement, planning for up-coming field season, report writing and tenement management activities. Planned exploration for EL 24944 will involve ongoing technical review of additional data acquired and follow up of the Towns River Project area, including the other two tenements. Work will also involve ground-truthing, checking areas of anomalism/prospectivity, geophysical survey, geochemical sampling and some exploratory RAB/RC drilling in areas that are deemed worthy.