Annual exploration report on MLN 281 to 373 AuQuest Project Area for the year ending 31 December 2008

Abstract

The Tenement Group (MLNs 281 -284, MLNs 337 - 339, MLNs 369-370, MLNs 372 - 373) is located some 110 kilometers south-east of Darwin. These tenements were granted from 1973 to 1976 respectively. On 25 July 2007, by virtue of an agreement, GBS Gold Australia Pty Ltd acquired all mining and exploration assets, located in the Toms Gully Region, including tenement group discussed in this report. Currently, arrangements are underway to register this tenement package in the name of GBS Gold Australia. Most of the project area falls in an area covered by the Koolpin Formation and surrounded by Gerowie Tuff. The Mount Bundy Granite intrudes the rock formation towards north. Within the project area, Quest 30 gold prospect is located which contains significant auriferous quartz vein system. During the reporting period, an in-depth technical review of the project area was undertaken which identified significant potential for gold mineralisation. It is proposed that magnetic anomalies identified should be thoroughly checked, and project area mapped in detail. It should follow soil/rock sampling, and if warranted, should lead to Air Core or RC drilling program.