Annual exploration report on EL 9608 Mount Bonnie South year ending 24 May 2008

Abstract

EL 9608 is located about 145 km SE of Darwin, NT and 18 km SE of Brocks Creek. EL 9608 was granted on 25 May 2004 and expires on 24 May 2010. It comprises three blocks that cover approximately 10 km2. Originally, EL 9608 was granted to Northern Gold NL, which in 2005 became the subsidiary of GBS Gold Australia Pty Ltd. EL 9608 covers the Koolpin Formation meta-sediments that have been tightly folded and faulted on NW-SE axes. The Koolpin Formation has been intruded and dilated regionally by dolerite sills with a wide range of thicknesses. Cross-folding has generated a domal structure in the southern most block of the tenement. This feature is a clone of the mineralised Golden Dyke Dome 4 km to the west. The area is well exposed on strike ridges with scree deposits and alluvial cover in the valley floors and flanks of the ridges. During the reporting period, drilling campaign which commenced in early 2007 was completed. It involved drilling of 8 RC holes for 589 metres. During this campaign, 592 RC chip samples (1 meter composite) were selected and assayed for Au, As, Cu, Zn and Pb by NAL Laboratories Pine Creek. Sample retrieved during drilling assayed as high as 6.18 ppm Au (Sample No 1285, DRC005) at 22 metre depth. The Zamu Dolerite is the main host rock which has been cut-across by quartz veins. Top 10 samples varied from 0.35 to 6.18 ppm Au with only two samples above 1.0 ppm Au. Cu is another metal of interest and its concentration vary from 12 ppm to 1090 ppm with an average of 84 ppm. Highest concentration of Cu comes form sample no 1285 which also has highest concentration of Au (6.18 ppm) and moderate amount of As (3850 ppm). Data generated during 2007-08 will be further evaluated in conjunction with field mapping. A geophysical appraisal will be undertaken to identify some targets. If some encouraging results received, this might lead to further RC/RAB drilling.