Annual exploration report EL 24151 for period ending 1 August 2009

Abstract

EL 24151 is a significant tenement within Toms Gully port folio and is located about 75km SE of Darwin, Northern Territory. Toms Gully Mine and processing facility is about 20 kilometres south-east of the project area. The tenement was granted initially to Renison Consolidated Mines NL. GBS Gold Australia Pty Ltd acquired the tenement during the third quarter of 2007 and now controls this tenement. The Project area is located within the central northern portion of the Proterozoic Pine Creek Orogen. The Palaeoproterozoic rocks of the region include Mount Partridge Group - the Wildman Siltstone which is unconformably overlain by South Alligator Group, which comprises the Koolpin Formation, Gerowie Tuff and Mount Bonnie Formation. The Finniss River Group - Burrell Creek Formation, lies conformably over the South Alligator Group. These meta-sediments are strongly folded along a NNE trending anticlinal and synclinal axis. During the reporting year, a review was undertaken which identified the significant potential of the tenement for gold, uranium and base metals. Processing and interpretation of the high resolution geophysical further support the mineral prospectivity of the project area (Gold, Uranium and Base Metals). To test the full potential of EL 24151, selected areas will be mapped and geochemical sampling campaign will be conducted in 2009-10. A ground radiometric survey will also be carried out. High priority targets will undergo Aircore/RC drilling.