Annual exploration report EL 23506 for period ending 8 May 2008 McKeddies

Abstract

EL 23506 is located about 190 km SE of Darwin and some 40 km NE of Pine Creek. It contains a number of mineral prospects/anomalies such as gold, iron, tin and uranium. The tenement falls on the Pine Creek 1:250,000 sheet and is located on the McKinlay River 1:100,000 sheet to the north, and Pine Creek 1:100,000 sheet to the south. GBS Gold Australia acquired the rights to explore the tenements from the titleholders and in turn have signed heads of agreement with Territory Resources Limited and Thundelarra Exploration Limited for the exploration of iron ore and uranium. EL 23506 is situated within the Pine Creek Orogen, a tightly folded sequence of the Palaeoproterozoic rocks. The tenement area covers the Palaeoproterozoic Namoona Group (Masson Formation) and Mount Partridge Group (Mundogie Sandstone and Wildman Siltstone). These rock formations have been intruded and contact metamorphosed by the Zamu Dolerite and members of the Cullen Batholith. During the reporting period, EL 23506 was explored for iron ore and uranium and a technical review was undertaken to assess the full potential of the area. This campaign led to drilling of 5 RC drill holes for 365 metres. A total of 12 composite samples (RC chip) were selected and were analysed (XRF Method) for FeO(t), P, Al2O3, SiO2, CaO, TiO2, MgO, K2O, MnO and S. These samples were characterised by high Fe2O3, ranging from 6.33% to 78% with an average of 59.09%. Exploration program conducted so far and technical review of the project area has highlighted multi-commodity potential of EL 23506. In 2008/09, uranium exploration will take the initiative and embark on collecting new EM data over part of the tenement. It is expected that further refinement of on-going radiometric data appraisal will take place. Target generated during this program will be drill-tested on the availability of drill rig. Data generated for the last two programs will be analysed and further program will be devised to explore for iron ore and gold mineralisation. It will include geological mapping, geochemical sampling and possible RC/RAB drilling.