Annual exploration report on MLNs 281-284, 337-339, 369-370, 372-373 AuQuest Project Area year ending 31 December 2007

Abstract

The Tenement Group (MLNs 281 -284, MLNs 337 - 339, MLNs 369-370, MLNs 372 - 373) is located some 110 kilometers south-east of Darwin. These tenements were granted from 1973 to 1976 respectively. On 25 July 2007, by virtue of an agreement, GBS Gold Australia Pty Ltd acquired all mining and exploration assets, located in the Toms Gully Region, including tenement group discussed in this report. Currently, arrangements are underway to register this tenement package in the name of GBS Gold Australia. Most of the project area falls in an area covered by the Koolpin Formation and surrounded by Gerowie Tuff. The Mount Bundy Granite intrudes the rock formation towards north. Within the project area, Quest 30 gold prospect is located which contains significant auriferous quartz vein system. During the reporting period, exploration activities included a peripheral review of the project area, reconnaissance visit, tenement administration and report writing. An in-depth review is underway to assess the full potential of Toms Gully Group of tenements including the tenement group which is the subject of this report. The main purpose of this program will be to understand, geological and structural setting of the area to elucidate mineralising processes. A detail geophysical interpretation of the area is also underway to provide assistance in targeting areas of possible mineralisation. It is anticipated that in 2008-09 a program of soil/rock chips sampling will be undertaken which may lead to Air Core or RC drilling.