Annual exploration report EL 10347 for period ending 14th April 2008 Golden Dyke Dome Burnside Project NT

Abstract

EL 10347 is located 145km SE of Darwin, and is centered on the Golden Dyke Dome, a faulted anticlinal feature at the southern end of the historic Yam Creek-Golden Dyke gold-mineralised belt. Several historic gold mines occur within the tenement including Golden Dyke, Davies No 2, Fishers Adit, Afghans Gully and Langley's. Gold mineralisation in the tenement is associated with the Middle Koolpin Formation of the South Alligator Group. Prospects lie along an arcuate fold axis trend, (Good Shepherd Anticline) which is parasitic to the west limb of the Dome. The gold closely follows stratigraphy and the bulk of mineralisation is confined to the contact zone between the Koolpin Formation and the Zamu Dolerite. It is hosted mainly by dark, nodular, cherty, chloritic and magnetic iron formation horizons thought to correlate with the same strata at the Cosmopolitan Howley Mine 16km to the west. During the reporting period a technical review of the tenement was undertaken, which involved geological, TMI and geochemical data appraisal. This review indicated the mineral potential of the area which will enhance the mining and processing operations already underway in the region. GBS Gold has initiated assessment of all mineral resources in the Golden Dyke area which also include Iron Blow and Mt Bonnie deposits. GBS Gold plans to develop and mine these deposits under a specially designed program for this group of deposits because of their similarity in geology, mineralogy and structure. A specially designated circuit developed by GEOCOAT(r) technology to process refractory ores, will be installed at Union Reefs. During 2008/09, EL 10347 will be explored for gold and base metal mineralisation. For this purpose, area identified during this review will undergo soil/rock chip sampling along with geological mapping. If encouraging results received, some RAB/RC drilling may also take place.