Annual exploration report EL 24307 for period ending 5 July 2008 Towns River NT

Abstract

Exploration Licence (EL) 24307 is situated in the eastern part of the McArthur Basin. It is approximately 230 km NW of Borroloola by road, and approximately 100 km SE of Ngukurr. The project area comprises sedimentary units of the Masterton Sandstone, Mallapunyah Formation (McArthur Group), Balbarini Dolomite (Nathan Group) and Limmen Sandstone, Abner Sandstone, and McMinn Formation. A number of exploration programs have been conducted which covers the tenement partially or completely with out any success. Technical review of the project area has identified base metals, uranium, diamond and iron ore potential of the area. GBS Gold regards EL 24307 a strategic asset which can assist the company to diversify its portfolio. Results form current base metals exploration by GBS Gold Australia has encouraged the company to pursue strategy to add base metals in its portfolio. For this purpose, a joint venture agreement with the third party is being negotiated. After finalising joint venture agreement with the third party, a dedicated program of geological mapping, geochemical/indicator mineral sampling and possible RAB drilling will be undertaken to fully assess the mineral potential of the area.