Annual report on exploration licence EL 23173 AuQuest Project Area, period beginning 4 March 2007 to period ending 3 March 2008

Abstract

EL 23173 was granted to Renison Consolidated Mines Limited on 4 March 2003 for a period of six years. Located about 90 east of Darwin, the tenement comprises 6 blocks and covers 11 km2. On 25 July 2007, by virtue of an agreement, GBS Gold Australia Pty Ltd acquired all mining and exploration assets of Renison Consolidated Mines, located in the Toms Gully Region. Currently, arrangements are underway to register this tenement package in the name of GBS Gold Australia. During the transferring period, GBS Gold Australia has the responsibility of care and maintenance and statuary reporting. The tenement is located in the Pine Creek Orogen, where northern part of the project area contains the oldest sediments such as the Mount Partridge Group. It is unconformably overlain by the South Alligator Group, which comprises the Koolpin Formation, Mt Bonnie Formation and Gerowie Tuff. The southern portion of the project area is comprised of the Burrell Creek Formation, which conformably overlies the South Alligator Group. Tertiary and Quaternary Soils and Gravel's unconformably overlie all the lower lying portions of the tenement areas, generally referred to as Black Soils Regions. During the reporting period, a peripheral review of the project area was undertaken in conjunction with reconnaissance visit. The area was flown by a closed spaced geophysical survey ((airborne radiometric, magnetic and EM). The review points towards significant potential for gold, uranium and iron mineralisation. Processing and interpretation of geophysical data acquired will take place in 2008-09, which will provide assistance in targetting areas of possible mineralisation. It is anticipated that selected areas will also be mapped in detail and a program of soil/rock chip sampling will be undertaken. In areas of black soil cover, aircore drilling will be conducted.