Annual exploration report EL 24307 for period ending 5 July 2007 Towns River NT

Abstract

EL 24307 is located in the Gulf of Carpentaria, within the McArthur Basin. The Licence is approximately 230 km NW of Borroloola by road, and approximately 100 km SE of Ngukurr. It was granted to Gary Clarke (33%), Geoff Orridge (33%) and Mike Teelow (33%) on 6 July 2005 for a period of 6 years. GBS Gold Australia acquired the rights to explore the tenements in 2005 under an agreement with the tenement holders. The project area comprises sedimentary units of the Masterton Sandstone, Mallapunyah Formation (McArthur Group), Balbarini Dolomite (Nathan Group) and Limmen Sandstone, Abner Sandstone, and McMinn Formation. A number of exploration programs have been conducted which covers the tenement partially or completely with out any success. Current technical review of the project area has identified base metals, uranium, diamond and iron ore potential of the area. GBS Gold regards EL 24307 a strategic asset which can assist the company to diversify its portfolio. Current technical review identified multi-commodity potential of the project pointing which GBS Gold intends to explore vigorously in the coming years. For this, a dedicated program of geological mapping, geochemical/indicator mineral sampling and possible RAB drilling will be undertaken to fully assess the mineral potential of the area. A minimum budget of $20000.00 is proposed.