Annual exploration report EL 24288 for period ending 3 April 2009 AuQuest Project Area

Abstract

EL 24288 is one of the significant tenements amongst GBS Gold Australia's port folio. It 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. 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. In 2008-09 reporting period, the project area was flow by high-resolution geophysical survey (magnetic, radiometric and EM). Processing and interpretation of these data have identified gold and uranium potential of the project area, leading to the identification of several magnetic and radiometric anomalies. In the next reporting period, targets identified so far will be checked in ground-truthing exercise, and samples will be taken for assay. In addition, if any drill rig became available, it will lead to a campaign of RC/RAB drilling to test the magnetic and radiometric anomalies. Samples retrieved during drilling will be assayed for gold, uranium, base metals and iron.