Annual exploration report Brocks Creek Group year ending 26 June 2009, MLN 1139, MLN 176, MCN 4689-4697, MCN 4701-4703, MCN 4863-4871, MCN 4895-4899

Abstract

The Brocks Creek Project is a crucial project within GBS Gold Australia's port folio which is located in the central part of the Pine Creek Orogen. It comprises a group of mining tenements centered about 140 km south east of Darwin, NT. Brocks Creek has historically been the focus of open pit, underground and alluvial gold mining area and has produced significant quantities of gold along the Brocks Creek-Zapopan (BKZ) structure. GBS Gold Australia Pty Ltd acquired the project area on 1st April 2006. The project area comprises a sequence of Palaeoproterozoic meta-sedimentary rocks of the South Alligator Group and Finniss River Group, intruded by the Burnside Granite. This rock sequence has been tightly folded on axes that trend north westerly, and have been subjected to greenschist facies metamorphism. Thermal effects from the late-orogenic Burnside Granite that lies to the north of the group has imparted hornfelsing and porphyroblastic spotting of garnet, biotite and andalusite/cordierite depending on lithology and proximity to the contact. On 15 September 2008, GBS Gold Australia was declared under voluntary receivership, and all exploration and mining projects were placed under 'Care and Maintenance' including Brocks Creek gold mine. Brocks Creek is a high grade mine and therefore has been a crucial resource in sustaining milling operation at Union Reefs gold plant. It is expected that Brocks Creek project area will play a major role in reviving the gold mining and processing operation in the Pine Creek region, once the sale process is completed. Brocks Creek Group of tenements also has significant potential for additional gold resource together with uranium and base metals. During the reporting period main activity, however, was to prepare GBS assets for sale. For this purpose, tenement ranking and evaluation was undertaken. In 2009-10 reporting year, project area will be explored for gold, uranium and base metals mineralisation. The Brocks Creek Project also contains several gold prospects which needed to be investigated for additional mineralisation to improve the inventory base. In the coming years, resource drilling campaign will be undertaken to extend the inventory base. In addition, other areas within the Brocks Creek project will be tested with soil/rock sampling and RAB/RC drilling.