Annual exploration report SEL 10341 Pioneer, Union Reefs Project year ending 29 September 2008

Abstract

The substitute exploration licence 10341 covers mainly the Burrell Creek Formation with dominant lithologies of greywacke, siltstone and mudstone. Towards north-west, minor rocks of the Mount Bonnie Formation (South Alligator Group) are also exposed. These lithologies have been intruded and thermally metamorphosed by the Tabletop, Allamber Springs and McKinlay Granites. There are a number of gold deposits/prospects around the SEL 10341 and within the project area, which are covered by Elizabeth group of tenements. There is a close association of these deposits with the lithologies of the Finnish River Group and South Alligator Group, intruded by the Palaeoproterozoic granites in the surrounding area. During the reporting period, a total of 6 holes were drilled for 591 metres with depth ranging from 97 to 103 metres. 614 chip samples were retrieved and analysed for Au, As, Cu, Pb and Zn. Assaying of chip samples provided disappointing results and most of samples show very low concentrations of gold generally below the detection limit. Au values range from 0.1 to 0.20 ppm with an average of 0.02 ppm which were much below the expectation. Cu values are moderately high ranging from 1 to 292 ppm with an average of 32.43 ppm. Pb values varied form 5 to 7269 ppm with an average of 132 ppm whereas Zn has the highest concentration of 8040 ppm. Other activities included review of the result, data compilation, reconnaissance visits to the project site and report writing. SEL 10341 is considered to be strategic in GBS Gold assets due to its close proximity to the Union Reef gold mill, and will play an important part in the revival of the company. Meanwhile SEL 10341 will be kept under review and ranking exercise due to voluntary administration of the company. If some resources became available a program of geological mapping and further drilling will be undertaken.