Annual exploration report EL 22232 Au Quest Project year ending 2 September 2009

Abstract

EL 22232 is situated about 80 km SE of Darwin and 10 km NW of the Toms Gully Mine along the Arnhem Highway. The tenement was granted to Renison Consolidated Mines NL on 3rd September 2003 and expires on 2nd September 2009. GBS Gold Australia Pty Ltd acquired the tenement on 25 July 2007. EL 22232 is located within the Pine Creek Orogen, a tightly folded sequence of Palaeoproterozoic rocks, 10km to 14km in thickness, laid down on a rifted granitic Archaean basement during the interval approx 2.2-1.87Ga. The sequence is dominated by pelitic and psammitic (continental shelf shallow marine) sediments with minor inter-layered tuff units. The Cullen intrusive event introduced a suite of fractionated calc-alkaline granitic batholiths into the sequence in the period approx 1.85-1.78Ga. During the reporting period processing and interpretation of previously acquired data was undertaken. In addition, project area was also flown by high resolution AE Tempest survey. TMI image of the project area shows a north-west trending magnetic feature within EL 22232 which probably represent a sliver of the South Alligator Group (Koolpin Formation, Gerowie Tuff and Mt Bonnie Formation). This lithological assemblage is an important host for gold mineralisation in the Pine Creek Orogen and their presence in the vicinity of Mt Bundy Granite further highlights their potential for gold mineralisation. Radiometric data revealed some anomalous areas in the eastern part of the tenement. However, much of the project area is covered by recent alluvial cover which probably hampers any radiometric response from bed rock. During the reporting period high resolution TEMPEST AEM survey was also obtained covering the project area. Processing and interpretation of the data is underway. Initial result shows that bed rocks of the project area contain conductor lithologies which could be important for hosting base metals mineralisation. In the next reporting year, a campaign of RC/RAB drilling will be undertaken. Samples retrieved during drilling will be assayed for gold and base metals and rocks will be assessed for uranium mineralisation.