Annual exploration report EL 23516 for period ending 3 April 2009 Great Northern

Abstract

EL 23516 is a an important tenement amongst GBS Gold Australia's port folio, which is located approximately 150km SE of Darwin, and 40km ENE of Adelaide River. EL 23516 was granted on 4 April 2003, and will expire on 3 April 2009. It comprises 34 blocks that cover approximately 113.7 km2. EL 23516 is located within the Pine Creek Orogen and covers mostly Palaeoproterozoic Burrell Creek Formation part of the Finniss River Group. It also underlies rocks of the South Alligator Group towards south. EL 23516 almost surrounds the Goodall and several other gold prospects/deposits. During 1988 - 1993 Goodall mine produced 7.1 tonnes of gold by treating 4.095 Mt tonnes of ore with a head grade of 1.99 g/t. The area has been known for gold mineralisation and still potential exits in discovering new gold deposits.Technical reviews of the project show that the presence of magnetic ridges within EL 23516 signifies the gold potential of the area. Already several gold prospects/deposits are apparently associated with these magnetic ridges (e.g Goodall gold deposit), which could provide lead in developing exploration strategies in the area. In 2008-09, company resources remained focused in the development of projects such as Chinese South (Big Pit), Toms Gully, Cosmo Deeps and Maud Creek gold Deposits with a budget of 10's of millions of dollars. Therefore, only a peripheral review of EL 23516 was undertaken. GBS Gold regards the tenement highly and considers it a strategic asset for the long term gold mining and processing operations in the Pine Creek Region. It is expected after acquiring the regulatory approval, new owner (Crocodile Gold Australia Pty Ltd) will commence exploration activities in the project area. During 2009 - 2010 ground-truthing and soil sampling program will be undertaken to find additional areas of gold anomalism which could require RAB/RC drilling.