Annual exploration report EL 24665 for period ending 27 April 2007 Towns River

Abstract

EL 24665 is located within McArthur Basin about 618 km east of Darwin. Well known Merlin Diamond mine and McArthur River base metal deposits are located about 137 km from the tenements. This part of the McArthur Basin is known for base metals, diamond and iron ore mineralisation. EL 24665 was granted to Mike Teelow on 28 April 2006 for a period of 6 years which expires on 27 April 2012. It covers an area of 368 blocks (1217.0 km2). Under an agreement, GBS Gold Australia Pty Ltd acquired exclusive exploration rights on 15 May 2006. EL 24665 lies on the eastern part of the McArthur Basin, mainly on the western side of the Batten Trough, within the Bauhinia Shelf. A few eastern blocks of EL 24665 are also within the Batten Fault Zone trough, which contains the thickest part of the McArthur Group sediments. The project area has a mineral potential for base metals, diamonds, iron ore and manganese. During the reporting period, an in-depth technical review of the previous work and tenement has been carried out in order to assess the mineral potential of the project area. Proposed exploration activities for the year 2007-2008 include ground-truthing, geophysical survey, geochemical sampling and possible RAB/RC drilling.