Annual exploration report EL 23431 Mount Bonnie West year ending 19 December 2008

Abstract

EL 23431 is located about 140km SE of Darwin, NT and 14 km SE of Brocks Creek. It is part of the Burnside Joint Venture, managed by Burnside Operations P/L comprising Territory Goldfields NL and Buffalo Creek Mines NL. The latter are subsidiaries of Northern Gold NL which was subsequently taken over by the present managers GBS Gold Australia Pty Ltd. The tenement comprises a suite of meta-sedimentary rocks belonging to Palaeoproterozoic South Alligator Group. The Group is part of the Pine Creek Orogen sequence and is contiguous with the base metal and gold mineralised localities of Mt Bonnie and Golden Dyke. The Hayes Creek Fault strikes north east through the centre of the prospect and is important in the localisation of gold mineralisation. During the reporting period an accelerated program of exploration activity was undertaken particular for uranium. This included geological mapping, radiometric survey, drilling and assaying of rock chip samples collected during the program. Radiometric survey identified a uranium anomaly named as Thunderbolt which was drill tested. A total of 7 RC holes were drilled for 724 metres. Down-hole logging confirmed the presence of uranium mineralisation which is confined to carbonaceous siltstone and tuffaceous units of the Mt Bonnie and Gerowie Tuff. On ground exploration activity will continue on EL 23431 during 2009, and will involve down-hole geophysical survey, mapping of the selected areas, procurement of assay data which will lead to appraisal of the whole project area for uranium, gold and base metal mineralisation. It is also expected that GA sponsored EM survey will be conducted during 2009. Additional RC/diamond drilling will take place to ascertain the structure which host the mineralisation and that may also locate gold mineralisation.