Annual exploration report EL 24409 for period ending 5 May 2008 Brocks South West Burnside Project NT

Abstract

EL 24409 is located SW of Brocks Creek project area and is approximately 150km SE of Darwin NT. EL 24409 was granted on 6 May 2005 and expires on 5 May 2011, covering 22.1 km2. It was granted to Buffalo Creek Mines Pty Ltd (50%) and Territory Goldfields NL (50%), which were part of the Burnside JV. During 2005, GBS successfully made a takeover bid for the JV through Northern Gold NL. Most of the tenement overlies the Burrell Creek Formation of the Finniss River Group. The southern 2 blocks are mapped as Mt Bonnie Formation sediments of the South Alligator Group. These rock units crop out sparsely in the tenement. The area has been explored by a number of companies which led to the identification of a number of anomalous gold zones. During the reporting period a peripheral review of the tenement was undertaken which placed this tenement in high ranking. A close proximity of this tenement to Zapopan (Brocks Creek) gold mine, favourable geological setting and geophysical signature require that the potential of this tenement should be tested with dedicated exploration program. Particular area of interest is magnetically recessive eye-shaped structure bounded by magnetically high ridges. GBS Gold recognises the strategic significance of the tenement and plans to explore it aggressively. During the year 2007-08, identified areas within EL 24409 will be checked thoroughly by geological mapping, soil sampling and possible aircore drilling. Particular attention will be paid to already identified anomalous zones.