Annual report on EL 24150 AuQuest Project for period ending 24 January 2008

Abstract

EL 24150 is located about 80 km east of Darwin and 28 km northwest of the Toms Gully Gold Mine. The EL is part of tenement package which GBS Gold Australia Pty Ltd has acquired form the Renison Consolidated Mines Limited in 2007. It was granted on 25 January 2005 for a period of 6 years. The tenement comprises 22 blocks and covers 47.7km2. EL 24150 is located within the Pine Creek Orogen, which has been interpreted as an intra-cratonic basin lying on an Archaean basement, and containing a 14 km thick sequence of Palaeoproterozoic sediments, accompanied by lesser volcanics, granitic plutons and dolerite intrusions. Predominant rocks exposed in the project area belong to the Wildman Siltstone, Koolpin Formation and Burrell Creek Formation. In places sills of the Zamu Dolerite may also be present. Much of the bed rock geology is obscured by thick black soil cover. In the reporting period, a technical review of the available data was undertaken. The tenement appears to be prospective for gold and uranium mineralisation. Geological setting of the area is ideal for medium size gold deposit, where prospective lithologies of the Wildman Siltstone, Koolpin Formation and Burrell Creek Formation are present. These formations have been folded in north-westerly trending folds which are characteristic feature of gold mineralised settings in the Pine Creek Orogen. Presence of northwest trending deep-seated fault structure lined with dolerite points toward possible conduit/source for mineralising fluid. In 2007, a high resolution magnetic, radiometric and EM was flown over the project area, however, data have not been processed. In the next reporting period, geophysical data will be processed and interpreted which will help to select targets for gold, uranium and base metal mineralisation.