Annual report on EL 22206 AuQuest Project period ending 21 October 2008 Toms Gully West

Abstract

Located on the western side of the Toms Gully Gold mine, EL 22206 is situated about 90 km south-east of Darwin. The tenement was granted on 22 October 2003 to Renison Consolidated Mines Limited and expires on 21 October 2009. It comprises 2 graticular blocks that comprises 6.5 km2. On 25 July 2007, GBS Gold Australia Pty Ltd acquired all tenements and Toms Gully gold mine held by Renison Consolidated Mines NL, including EL 22206. EL 22206 is located within the Pine Creek Orogen, which has been interpreted as an intracratonic basin lying on an Archaean basement, and containing a 14 km thick sequence of Palaeoproterozoic sediments, accompanied by lesser volcanics, granite plutons and dolerite intrusions. The sequence was deformed and metamorphosed during the Top End Orogeny (~1870 - 1780 Ma. Cullen Batholith and satellite plutons intruded the Palaeoproterozoic meta-sedimentary sequence dated at 1850 - 1780 Ma). During the reporting period, high resolution airborne magnetic and radiometric cover of the area was obtained. Processing and interpretation of the geophysical data have identified magnetic and radiometric anomalies which could contain gold and uranium mineralisation. This view is supported by the geological setting of the project area which is located in the northern part of the Pine Creek Orogen, known for gold and uranium mineralisation. Technical review of the project area has identified a number of gold and uranium anomalies which require follow up. For gold mineralisation a soil/rock chip sampling along the NW trending magnetic lineament is proposed. Section of the exposed stratigraphy will be mapped in detail. For uranium mineralisation, identified radiometric anomalies will be examined in the field and ground radiometric survey will be conducted to assess the full potential of these anomalies. Some soil/rock chip samples will be taken for assaying. On receiving some encouraging results from exploration activities, a campaign of RAB/RC will be conducted for gold and uranium mineralisation.