Annual report EL 24151 for period ending 1 August 2008 Marrakai

Abstract

EL 24151 is located within Pine Creek Orogen, about 75km SE of Darwin, Northern Territory, and 20 kilometres north-west of the Toms Gully Mine Site on the Arnhem Highway. The tenement was granted initially to Renison Consolidated Mines NL. GBS Gold Australia Pty Ltd acquired the tenement during the third quarter of 2007 and now controls this tenement. The Project area is located within the central northern portion of the Proterozoic Pine Creek Orogen. The Palaeoproterozoic rocks of the region include Mount Partridge Group - the Wildman Siltstone which is unconformably overlain by South Alligator Group, which comprises the Koolpin Formation, Gerowie Tuff and Mount Bonnie Formation. The Finniss River Group - Burrell Creek Formation, lies conformably over the South Alligator Group. These meta-sediments are strongly folded along a NNE trending anticlinal and synclinal axis. During the reporting period, a detailed literature search and review was undertaken which identified the significance of the tenement for gold, uranium and base metals. The project area contains prospective geological setting in the Pine Creek Orogen which is known to host gold mineralisation elsewhere. During year 2008-09, GBS Gold plans to explore gold and JV partner (Rum Jungle Uranium Pty Ltd) will be exploring for uranium in the project area. Recently acquired high resolution geophysical data will be interpreted in order to identify significant anomalies/targets for uranium and gold. The company also intends to test the potential by geochemical sampling for gold, uranium and possibly base metals. High priority targets will undergo aircore/RC drilling.