Annual exploration report EL 10367 Au Quest Project year ending 21 October 2008

Abstract

EL10367 is part of the Toms Gully tenement package which GBS Gold Australia acquired in 2007 and is located about 90 km SE of Darwin and approximately 2 km south of the Rustlers Roost Mine along the Arnhem Highway. EL 10367 was originally applied for by Renison Consolidated Mines NL on the 22 October 2003 as part of a group of tenements (AuQuest Project) that have a northwest trend of mineralisation known as Noonamah-Corroboree trend. The licence area encompasses a suite of meta-sedimentary rocks belonging to the Mt Bonnie Formation and the Burrell Creek Formation. These comprise brown to grey-green, thickly bedded to massive, fine to coarse feldspathic meta-greywacke with graded bedding in places and minor lenses of volcanilithic pebble conglomerate; brown to grey, laminated phyllite, slate and mudstone; minor quartz-mica schist. On 21 August 2007, GBS Gold Australia signed a JV agreement with the Rum Jungle Uranium Pty Ltd, which allowed the later to explore uranium on EL 10367 and other tenements located in the Toms Gully area. During 2008, new high resolution magnetic and radiometric cover of the project and surrounding region was flown in order to identify targets for gold and uranium exploration. An in-depth technical review of the tenement has identified gold anomalous areas which require follow up. Unfortunately, no uranium anomaly was identified in the project area. In the reporting year 2009-10, follow-up work should entail geological mapping and geochemical sampling of soil and rock chips in the project area. Drilling done in the early 1980's should be re-visited. If drill core/chips are available then samples will be retrieved for assaying. An important feature of the exploration program should be in drill-testing the magnetic anomaly present in the centre of the project area.