Annual report on exploration licence EL 23172 AuQuest Project Area period beginning 6 May 2007 to period ending 5 May 2008

Abstract

EL 23172 is part of a tenement package which has been acquired by GBS Gold Australia Pty Ltd from Renison Consolidated Mines Limited in 2007. It is located about 90 km east of Darwin and 8 km form Toms Gully Gold Mine. The tenement is located within Darwin (1:250 000) and Noonamah (1: 100 000) sheets. EL 23172 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 Proterozoic sediments, accompanied by lesser volcanics, granitic plutons and dolerite intrusions. The Northern portion of the project area contains the oldest sediment of the Mount Partridge Group that is unconformably overlain by the South Alligator Group. The southern portion of the Project area is comprised of 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 exploration tenement was undertaken which identified its potential for gold, uranium and base metals mineralisation. Other activities included data base compilation, reconnaissance visit, tenement administration and report writing. An in-depth review is underway to assess the full potential of Toms Gully Group of tenements including EL 23172. The main purpose of this program will be to understand, geological and structural setting of the area to elucidate mineralising processes for gold, uranium, base metals and iron ore. A detailed geophysical interpretation of available data is also underway to provide assistance in targetting areas of possible mineralisation. It is anticipated that selected areas will be mapped in detail, and a program of soil/rock chips sampling will be undertaken. Areas of black soil cover will be tested by Air Core drilling.