Annual exploration report EL 23536 for period ending 28 July 2008 Mt Osborne Burnside Project NT

Abstract

EL 23536 is located immediately south of the Burnside Project area and covers several mineral claims and part of MLN 1139. It is located in a close proximity of mining centres such as Fountain Head and Brocks Creek (Zapopan). EL 23536 was granted on 29 July 2003 and expires on 28 July 2009. It was granted in equal shares to Buffalo Creek Mines Pty Ltd (50%) and Territory Goldfields NL (50%), which were part of the Burnside JV. During 2005, GBS successfully made a takeover for Northern Gold NL, and has reached an agreement to purchase Harmony's 50% share of the Burnside project. GBS Gold has 100% of the Burnside Project as of 1 April 2006. The tenement overlies a sequence of Palaeoproterozoic meta-sediments ranging from South Alligator Group to Finniss River Group. Much of the area is covered by pre-existing titles (e.g ML 1139) which cover the South Alligator Group sediments, and the area covered by EL 23536 is mainly of the Burrell Creek Formation sediments of the Finniss River Group. In the northern part of the tenement, rocks of the Gerowie Tuff and Mount Bonnie Formation are also present. The sequence has been intruded by the Burnside Granite, a fractionated and oxidised body that is known to have been associated with gold mineralisation in the contact aureoles. A peripheral review of the tenement shows that it has significant potential for hosting gold and base metal mineralisation due to its close proximity to the Burnside Granite. Main activities during the reporting period are reconnaissance visit, data review, tenement administration and report writing. The company is planning to conduct extensive drilling program on the adjacent and underlying tenement (ML 1139). It is expected that this program may be extended on EL 23536, which will involve geological mapping, geochemical sampling and possible RAB/RC drilling.