Annual exploration report EL 24288 for period ending 3 April 2008 AuQuest Project Area Toms Gully NT

Abstract

EL 24288 is located approximately 100 kilometres south east of Darwin and 15 kilometres south east of the Toms Gully Mine Site and surrounds the Quest 29 and Quest 30 mining leases. In April 2004, the tenement was granted originally to Renison Consolidated Mines Ltd. On 25 July 2007, by virtue of an agreement, GBS Gold Australia Pty Ltd acquired all mining and exploration assets, including EL 24288, located in the Toms Gully Region. Currently, arrangements are underway to register this tenement package in the name of GBS Gold Australia. The Project area is located within the central northern portion of the Palaeoproterozoic Pine Creek Orogen. Rocks of the Koolpin Formation, Mount Bonnie Formation, Gerowie Tuff and Burrell Creek Formation are exposed in the project area, which have been intruded by Mount Bundy/Mount Goyder Syenite towards north. In the last thirty years, there has been significant exploration activity in the project area, which led to the discovery of gold mineralisation in a number of localities. The area is considered to be prospective for gold, base metal, uranium and iron mineralisation. An in-depth review is underway to assess the full potential of Toms Gully Group of tenements including EL 24288. A detail 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. In areas of black soil cover, aircore drilling will be required to retrieve bed rock samples.