4th annual exploration report EL 23174 Au Quest Project year ending September 18th 2007

Abstract

EL23174 is situated 80km East of Darwin NT and 3.5km North of the Toms Gully Mine along the Arnhem Highway. On 25 July 2007, GBS Gold Australia Pty Ltd acquired all tenements and Toms Gully gold mine held by Renison Consolidated Mines NL, including EL 22232 in Toms Gully area, Northern Territory. This tenement package is in the process of being registered in the name of GBS Gold Australia. During this transferring period, GBS Gold Australia also has the obligation of statutory reporting on these tenements. EL 23174 is located within the Pine Creek Orogen, which has been interpreted as an intracratonic basin lying on an Archaen basement, and containing 14 km thick sequence of Proterozoic sediments, accompanied by lesser volcanics, granitic plutons and dolerite intrusions. In the tenement area rocks of the Mount Partridge Group, South Alligator Group and Finniss River Group are exposed. Work during the reporting period from September 19th 2006 to September 18th 2007 concentrated on the compilation and understanding of data assembled by Renison Consolidated, tenement administration and report writing. Exploration had to be reprioritized in the region as the majority of the year was taken up with the formalities of takeover. This was due to the acquisition of the Renison Consolidated by GBS Gold Australia Pty Ltd on 25 July 2007. The proposed work programme for the project area will include a review of historical data compiled by Renison Consolidated to identify if any areas of anomalism had previously been detected by other explorers in the region, ground-truthing by GBS Gold Australia Pty Ltd staff, and a further assessment of the exploration potential of the region. A grass roots programme of reconnaissance geological mapping, rock chip sampling and soil sampling will also be undertaken.