Annual report on exploration licence EL 24682 AuQuest Project for period ending 2 February 2008

Abstract

Exploration Licence (EL) 24682 is located about 90 km east of Darwin and 8 km northwest of the Toms Gully Gold Mine. The EL is part of tenement package which GBS Gold Australia Pty Ltd has acquired form the Renison Consolidated Mines Limited in 2007. It was granted on 1st February 2006 for a period of 6 years. The tenement comprises 34 blocks and covers 107.5 km2. EL 24682 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 Palaeoproterozoic sediments, accompanied by lesser volcanics, granitic plutons and dolerite intrusions. Predominant rocks exposed in the project area belong to the Wildman Siltstone, Koolpin Formation, Mt Bonnie Formation, Gerowie Tuff and Burrell Creek Formation. Palaeoproterozoic strata have been intruded by the Mount Bundey Granite. In the reporting period, a technical review of the available data was undertaken. The tenement appears to be prospective for gold and uranium mineralisation. Geological setting of the area is ideal for medium size gold deposit, where prospective lithologies of the Wildman Siltstone, Koolpin Formation, Mt Bonnie Formation and Burrell Creek Formation are present. These formations have been folded in north-westerly trending folds which are characteristic feature of gold mineralised settings in the Pine Creek Orogen. In 2007, a high resolution magnetic, radiometric and EM was flown over the project area, however, data have not processed. In the next reporting period, geophysical data will be processed and interpreted which will help to select targets for gold, uranium and base metal mineralisation.