Annual exploration report EL 23506 for the period ending 8 May 2009 McKeddies

Abstract

EL 23506 is one of the significant tenements within GBS Gold Australia's portfolio which is located about 190 km SE of Darwin and some 40 km NE of Pine Creek. It contains a number of mineral prospects/anomalies such as gold, iron, tin and uranium. The tenement falls on the Pine Creek 1:250,000 sheet and is located on the McKinlay River 1:100,000 sheet to the north, and Pine Creek 1:100,000 sheet to the south. GBS Gold Australia acquired the rights to explore the tenements from the titleholders and in turn have signed heads of agreement with Territory Resources Limited and Thundelarra Exploration Limited for the exploration of iron ore and uranium. EL 23506 is situated within the Pine Creek Orogen, a tightly folded sequence of the Palaeoproterozoic rocks. The tenement area covers the Palaeoproterozoic Namoona Group (Masson Formation) and Mount Partridge Group (Mundogie Sandstone and Wildman Siltstone). These rock formations have been intruded and contact metamorphosed by the Zamu Dolerite and members of the Cullen Batholith. A technical review of the project area was undertaken. Geological, geochemical and geophysical data support significant mineral potential of the project area, particularly for iron ore, uranium and gold. South of the project area contains a number of operating and abandoned iron ore deposits which are located within Frances Creek mineral field. In 2009-10 reporting year, project area will be explored for Iron, gold and uranium mineralisation. For this purpose, area identified during this review will undergo soil/rock chip sampling along with geological mapping. If encouraging results received, some RAB/RC drilling may also take place.