Annual exploration report Howley Ridge Tenement Group MCN's 377-380; 852-857; 1035; 3099 - 3115; 3117 for the year ending 31 March 2009

Abstract

Twenty nine Mineral Claims Northern (MCNs) forms the Howley Ridge Group for the purpose of combined reporting, and are located about 130 km SSE of Darwin and some 8 km NW of the Cosmopolitan Howley Mine within the Pine Creek Orogen. In 2005, GBS made a successful takeover of Northern Gold, and entered an agreement to purchase Harmony's 50% share of the Burnside JV, giving GBS 100% of the project. The tenements occupy a segment Howley Anticline axis where rocks of the Mount Bonnie Formation, Gerowie Tuff and Burrell Creek Formation are exposed. The Zamu Dolerite is interlayered within the formations. The sequence has been folded into a macroscopic asymmetric anticline with parasitic flanking folds and thrust faults. This arcuate structure is termed the Howley Anticline and has been traced along strike for 30 km between the Cosmo Howley Mine and Mt Paqualin. The fold plunges shallowly to the NW in the vicinity of the Cosmo Howley. During the reporting period, Howley Ridge project along with operations was placed under care and maintenance due to voluntarily receivership status of GBS Gold Australia (15 September 2008). Only a peripheral appraisal of previous data along with reconnaissance visits, administrative duties and report preparation were undertaken. Appraisal of the data shows that Howley Ridge has some high grades, but appears to lack continuity. It is planned to re-evaluate the Howley Ridge mineralisation by modelling the data and evaluating it against other GBS resources. Further drilling has been planned to test the model, or to upgrade the resource. A program of RC drilling has already been designed to test northerly extension of Howley Anticline. In addition, some soil and rock chip sampling program may also be taken to assess the full potential of the area.