Annual exploration report MCNs 68 to 91 incl. for the year ending 31 December 2008

Abstract

MCNs 68-91 are some of the significant tenements which are located south of the Toms Gully Mine, and encompass several prospects. These MCNs were acquired by GBS Gold Australia Pty Ltd in July 2007 from Renison Consolidated Mines NL and Toms Gully Holdings Pty Ltd. These tenements were first applied for some sixteen years ago and have been explored sporadically. The Project area is located within the northern portion of the Pine Creek Orogen. The MCNs 68-91 mainly lie within the South Alligator Group, a sequence of tightly folded strata which unconformably overlies the Mount Partridge Group. Towards north, Mount Bundey Granite intrudes the orogenic sequence. The project area was flown by high resolution geophysical survey (magnetic, radiometric). Processing and interpretation of data along with geological setting show that project area could have significant gold potential. It could be an important source of additional resource to replenish the inventory base. Other activities included ground-truthing, tenement administration and report preparation. In the proceeding year the project area will undergo ground-truthing, soil/rock sampling, and if warranted, will lead to Air Core or RC drilling program.