Annual exploration report EL 23536 for the period ending 28 July 2007 Mt Osborne Burnside Project NT

Abstract

EL 23536 is situated immediately south of the Burnside Project area and is located in a close proximity of mining centres Fountain Head, Rising Tide and Brocks Creek (Zapopan). EL 23536 was granted on 29 July 2003 and expires on 28 July 2009. It was granted in equal shares to Buffalo Creek Mines Pty Ltd (50%) and Territory Goldfields NL (50%), which were part of the Burnside JV. During 2005, GBS successfully made a takeover for Northern Gold NL, and has reached an agreement to purchase Harmony's 50% share of the Burnside project. GBS Gold has 100% of the Burnside Project as of 1 April 2006. The tenement overlies a sequence of Palaeoproterozoic meta-sediments ranging from South Alligator Group to Finniss River Group. Much of the area is covered by pre-existing titles (e.g MLN 1139) which cover the South Alligator Group sediments, and the area covered by EL 23536 is mainly of the Burrell Creek Formation sediments of the Finniss River Group. In the northern part of the tenement, rocks of the Gerowie Tuff and Mount Bonnie Formation are also present. The sequence has been intruded by the Burnside Granite, a fractionated and oxidised body that is known to have been associated with gold mineralisation in the contact aureole in the Pine Creek Orogen. A technical review of the tenement area shows that it has significant potential for hosting new areas of gold mineralisation, because of its close proximity to the Burnside Granite. With the dedicated exploration team in place, an exploration program which includes soil/rock geochemical sampling, costeaning will be carried to identify new targets. If encouraging results found, this will lead to RAB/RC drilling.