Annual exploration report on EL 25295 year ending 14 February 2009

Abstract

EL 25295 is situated southern part of the Burnside Project area, approximately 150 km SE of Darwin. The Licence was granted on 15th February 2007 for a 6 year period and will expire on 14th February 2013. Tenement holders are Buffalo Creek Mines Pty Ltd (50%) and Territory Goldfields Pty Ltd (50%) which are wholly owned subsidiaries of GBS Gold Australia Pty Ltd. The tenement encompasses eight mineral claims which cover the region known as 'Margaret Diggings' - a small placer gold prospect. Rocks belonging to the Wildman Siltstone, Koolpin Formation, Gerowie Tuff, Zamu Dolerite and McMinns Bluff Granite are present in the project area. The tenement is considered important and prospective in GBS's port folio, as it contains known mineralisation, and areas with prospective lithology, structure, geochemistry and pronounced magnetic anomalies. An in-depth technical review during the reporting period identified the mineral potential of the project area. It contains significant magnetic anomalies which could host gold and base metal mineralisation in the project area. Other activities included reconnaissance visit, data entry into DataShed, administrative duties and report writing. Proposed program for the next period includes detail geological mapping to unravel structural complexities together with rock chip/soil sampling program to define geochemical anomalies better. On the availability of drilling rig, some RC/RAB drilling could also take place.