Annual exploration report EL 24405 for period ending 5 May 2008 Yam Creek West Burnside Project NT

Abstract

EL 24405 is located within central part of the Pine Creek Orogen, a known gold-rich region which has produced significant quantities of gold for the last 140 years. The tenement was granted to Buffalo Creek Mines Pty Ltd (50%) and Territory Goldfields NL (50%) which was part of the Burnside JV. In April 2006, GBS Gold Australia Pty Ltd acquired 100% of the Burnside JV. The tenement lies west of the Princess Louise gold deposit and Iron Blow base metal deposit near Yam Creek. There is poor outcrop within the tenement, but mapping by AGSO and NTGS shows the area being underlain by Burrell Creek Formation of the Finniss River Group. The strike of the Burrell Creek sediments within the tenement is unclear due to lack of outcrop, but may trend to the northeast. TMI imagery shows a strong NW component that may be NW-trending fracture sets that could control mineralisation. Work done during the reporting year included a peripheral review of work by previous explorers. This work indicated that the area may contain NW-trending structures, as noted on the TMI. The tenement covers the area which appears to be hydrothermal fluid conduits that have been derived from Burnside Granite. Similar type of fluids conduits may have been responsible for gold mineralisation at Fountain Head and newly discovered Tally Ho deposits. Other activities included reconnaissance visit, tenement administration and report writing. GBS Gold Australia regards EL 24405 highly and plans to explore it effectively. A program of soil sampling has been designed to test the potential of the area. If encouraging results received, it will lead to Air Core or RC drilling.