Annual Report for EL 23432 for period ending 8 May 2008 Hayes Creek North Burnside Project NT

Abstract

EL 23432 is located about 140km SE of Darwin, Northern Territory, and 3km north of Hayes Creek roadhouse on the Stuart Highway. The tenement was granted to the Burnside Joint Venture, managed by Burnside Operations P/L comprising Territory Goldfields NL and Buffalo Creek Mines NL. These are the wholly owned subsidiaries of GBS Gold Australia Pty Ltd. Three of the six blocks were nominated for surrender before the anniversary of year two. The tenement overlies the Burrell Creek Formation of the Finniss River Group. East of the tenement is the Hayes Creek Fault, a major north east striking fracture system. The Burrell Creek Formation that forms high ground in the tenement occupies the axial zone of the fold. This is interpreted as a refolded syncline. South-east and South-west of the tenement, deformed and metamorphosed rocks of the South Alligator and Mount Partridge Groups are present, which are interbedded with the Zamu Dolerite. During the reporting period, only a peripheral review of the tenement was undertaken. During 2007-08 much attention was focused in developing projects such as Toms Gully, Cosmo Deeps and Maud Creek. GBS Gold plans to develop major projects such as Toms Gully, Cosmo Deeps and Maud Creek in the next 2-3 years to take the advantage of current market conditions for gold. In addition, a number of other projects are also underway to define new resource base for the company. This year, a comprehensive base metal exploration program is also underway to sustain the company's multi-commodity approach. As a result, gross root exploration on the EL 23432 will remain on low to medium priority. However, if resources became available, then a program of soil sampling and geological mapping will be carried out.