Annual exploration report EL 24944 for period ending 3 September 2008 Towns River NT

Abstract

EL 24944 is located within McArthur Basin about 600 km south-east of Darwin and forms part of the Towns River group of tenements held by GBS Gold Australia Pty Ltd. Terra Gold Mining Pty Ltd (subsidiary of the GBS Gold Australia Pty Ltd) applied for the EL 24944 on 19 September 2005 and was granted on 4 September 2006 for a period of 6 years, which expires on 3 September 2012. EL 24944 lies on the eastern part of the McArthur Basin, mainly on the western side of the Batten Trough, within the Bauhinia Shelf. Sediments of the Roper Group cover most of the tenement with sporadic outcrops of Nathan Group, McArthur Group and Tawallah Group sediments. During the reporting period, a peripheral review of the previous work was conducted in order to assess the prospectivity of the project area. Work completed during the reporting period included, technical review of the tenement, planning for up-coming field season, report writing and tenement management activities. Work program for the next reporting year include ground-truthing, checking of areas of anomalism/prospectivity, geophysical survey, geochemical sampling and some exploratory RAB/RC drilling in areas that are deemed worthy. The basic model for exploration within the tenement will be to investigate areas that contain prospective stratigraphy similar to that iron ore mineralisation located at Roper River or McArthur River base metal deposits in the hope of finding a repetition of this type of mineralisation. Areas such as in the vicinity of north-south trending Cox Fault will be checked out thoroughly for mineralisation.