Annual exploration report on EL 25295 year ending 14 February 2008

Abstract

EL 25295 is located approximately 150 km SE of Darwin, Northern Territory just north of the Stuart Highway. The Licence was granted on 15th February 2007 for a 6 year period and expires on the 14 February 2013. Tenement holders are Buffalo Creek Mines Pty Ltd (50%) and Territory Goldfields Pty Ltd (50%) which are wholly owned subsidiaries of GBS Gold Australia Pty Ltd. It encompasses eight mineral claims (held by Robert Fisher and Robert Stroud) which cover the region known as 'Margaret Diggings' - a small scale placer gold prospect. Rocks belonging to the Wildman Siltstone, Koolpin Formation, Gerowie Tuff, Zamu Dolerite and McMinns Bluff Granite are present in the project area. The tenement is considered important and prospective in GBS's suite of tenements, as it contains known mineralisation, and areas with prospective lithology, structure and geochemistry. During the reporting period, a technical review identified the mineral potential of the project area. Other activities included literature review, data entry into DataShed, reconnaissance visit, administrative duties and report preparation. Proposed program for the next period will include acquiring of high resolution AEM data, which has been planned in conjunction with Geoscience Australia. In addition, detail geological mapping will be undertaken to ascertain structural complexities. This will be complemented with rock chip/soil sampling program to define geochemical anomalies better. On the availability of drilling rig, some RC/RAB drilling is also a possibility.