Annual exploration report EL 24058 'Yam Creek East', year ending 9 August 2008

Abstract

EL 24058 is located 150 km SE of Darwin, NT and 20km ESE of Burnside's Brocks Creek mine office. It lies just east of the Yam Creek-North Point mining centre. The tenement was granted on 10 August 2004 and expires on 9 August 2010. It comprises one graticular block that comprises approximately 3.33 km2. Tenements Holders are the Buffalo Creek Mines Pty Ltd (50%) and Territory Goldfields Pty Ltd (50%) are managed by Burnside Operations Pty Ltd, which is wholly owned subsidiary of GBS Gold Australia Pty Ltd. EL 24058 comprises a portion of South Alligator Group sediments that lie on the north western flank of the Burrundie Dome, a regional anticlinal structure. The Margaret Syncline containing Mt Bonnie Formation rocks lies to the west and separates the older Burrundie Dome from the Yam Creek sequence. During the reporting period, a review of geochemical and geophysical data was undertaken which identified potential for gold and base metals mineralisation. TMI image of the EL appears to be flat over most of the tenement area. However, south-eastern part of the tenement is characterised by some magnetic ridges which could have significant structure for mineralisation. Other exploration activities were reconnaissance visit of the area, tenement management and annual exploration report preparation. During 2007-08 much attention was focused in re-commencing Toms Gully project along with Cosmo Deeps and Maud Creek. In addition attention also focused to explore base metals mineralisation from Iron Blow and Mt Bonnie projects with a budget of several millions of dollars. GBS Gold Australia will pursue these projects in 2008-09, and therefore, EL 24058 will remain on low priority. Meantime, data review will continue to generate targets for drilling.