Annual exploration report on EL 24715 Mount Masson Project year ending 28 February 2009

Abstract

EL 24715 is one of the significant tenements within GBS Gold Australia's portfolio which is situated approximately 160 km SE of Darwin and 50 km north of the township of Pine Creek. In 2006, by virtue of an agreement, Territory Resources Limited acquired rights to explore iron ore within the tenement. The predominant rocks of the project area are the Mundogie Sandstone, a thickly bedded, medium to coarse, poorly sorted, feldspathic quartz meta-arenite, the Wildman Sandstone, which is laminated, red-brown and cream colour banded silty carbonaceous phyllite (meta-siltstone). It is also interbedded with sandy ferruginous meta-siltstone, thinly bedded feldspathic quartz meta-arenite, quartzite, litho-feldpspathic meta-greywacke. The western part of the tenement covers tightly folded Gerowie Tuff (siliceous siltstone and phyllite interbedded with pale cherty argillite, black cherty crystal and lapilli tuff) and the Koolpin Formation. It is ferruginised meta-siltstone and phyllite with chert bands, lenses and nodules; graphitic phyllite and slate. This sequence has been intruded by the Minglo Granite. A detailed mapping program and review of previous data was undertaken by reporting period ending on 28 February 2009. This program involved detailed mapping of ironstone outcrops around previous mines such as Jessops mine and newly discovered prospect (K-9). A series of fold structures were examined in details to find stratigraphic location of iron mineralisation. Review of the data further revealed that project area also has potential for gold and base metal mineralisation. In the light of detailed mapping, a program of RC drilling has been planned. Samples retrieved during drilling will be assayed for iron, gold and base metals. Area will be further targetted for uranium mineralisation.