Annual exploration report Iron Blow Group MLN 214, MLN 341, MLN 343, and MLN 349 year ending 31st December 2007

Abstract

The Iron Blow base metal-gold deposit represents one of the largest available base metal deposits in the Pine Creek Orogen. Together with the nearby Mt Bonnie deposit, they represent a substantial start towards achieving a critical mass of tonnage to support a base metals mining operation in the Pine Creek Area. The key lease MLN 214 was originally granted to EA Witte and K Jessop as ML 650B on the 6/1/1972 for a period of 21 years. The ownership of this principal tenement has changed many times. Now GBS Gold Australia P/L are the sole owner of the project. The Iron Blow mineralisation and related tenements underlie a stratigraphic sequence in the lower Mount Bonnie Formation (South Alligator Group). These include interbedded siltstone, pyritic and carbonaceous shales, greywacke, chert, hornfels, carbonate and minor conglomerate. Carbonaceous slates are the most common rock type exposed in the open cut, with silicified siltstone, hornfels and greywacke units exposed to the west. The Iron Blow deposit comprises two steeply dipping (75 east) conformable, polymetallic sulphide-silicate lodes. The eastern or upper lode has strike length of about 80 m, a maximum thickness of 10 m and extends down dip to 100 m below surface. The western or lower lode lies about 50 m to the west of upper lode. Striking over 150 m with a maximum thickness of 30 m, it extends over 200 meters below surface. This load contains two sulphide lenses which contain much of the known ore reserve. In the previous exploration programs, a non-JORC compliant resource of 92,000t at 8.1% Zn, 0.4% Cu, 1.8% Pb, 186g/t Ag, 1.5g/t Au for the Eastern Lode and 850,000t at 6.7% Zn, 0.4% Cu, 0.7% Pb, 87.3g/t Ag, 1.9g/t Au for the Western Lode, has been established. A technical review of the previous data were undertaken in order to evaluate the resource potential of the project and devise a program of exploration to test the mineral potential of the Iron Blow mineralisation.