Annual exploration report on SEL 25748 Burnside year ending 30 September 2008

Abstract

SEL (Substitute Exploration Licence) 25748 is the amalgamation of SEL 24352 and vacant ground covered by expired EL 9080. The tenement is the most important and prospective of GBS Gold Australia tenements in the Burnside project as it contains extension to known gold mineralisation. In the project area, significant deposits are hosted by the Brocks Creek-Zapopan shear zone, the Hayes Creek Fault system, and the Pine Creek Shear Zone. The project area contains rocks of the Burrell Creek Formation, Koolpin Formation, Gerowie Tuff, Mount Bonnie Formation and Zamu Dolerite. This package is intruded by the Palaeoproterozoic Burnside and Margret Granites. During the reporting period, gold exploration was conducted by GBS Gold Australia Pty Ltd and uranium was explored by JV partner, Rum Jungle Uranium Limited. For gold exploration, 218 soil samples were taken and assayed for Au, As, Cu, Pb, Zn and S. Gold values range from 0.05 ppb to 43 ppb with an average of 30 ppb. Under uranium exploration program, a comprehensive literature survey was conducted, and historical radiometric data were examined to identify uranium anomalies. 9 soil/rock chip samples were collected and assayed for U, Th, Au, Pd, Ag, As, Bi, Co, Cu, NI, Pb, Th, and Zn. All samples were enriched in iron where U concentrations varied from 3.94 to 26.1 ppm. A number of selected areas were surveyed by ground radiometric and four of the areas were chosen for further assessment. Scintillometer reading as high as 2000 c/s was observed. Area covered by Anomaly 136 was drill-tested. It involved drilling of 3 RC holes for 327 metres. These drill holes were gamma logged which returned significant radiometric peaks, indicating presence of mineralisation. From this exercise, some encouraging results have been received, which will provide basis to continue this program on SEL 25748. Data gathered, so far, will be further processed and assessed to generate additional gold, uranium and base metal targets. During 2008-09, additional soil sampling program will be undertaken and target generated will be drill-tested for gold, uranium and base metals.