Annual exploration report SEL 25054 for period ending 17 April 2009 Maud Creek Project

Abstract

SEL 25054 is located about 20 km east of Katherine, and surrounds the Maud Creek gold project. The tenement combines two exploration tenements (EL 10213 and SEL 9927) previously held by Terra Gold Mining Limited. It was granted on 18 May 2006 to Terra Gold and surrounds the Maud Creek Gold project held by GBS Gold Australia Pty Ltd, parent company of Terra Gold. SEL 25054 comprises rocks of the Finniss River Group. Only the upper part of the Finniss River sequence is represented by the Tollis Formation in the project area, which also contains interleaved mafic rocks of the Dorothy Creek Volcanic Member. The Katherine River Group crops out extensively in the northeast of SEL 25054. It comprises the oldest parts of the sequence (sandstone-dominant Kombolgie Formation with interlayered volcanic members). Numerous NE-trending dolerite and/or lamprophyre dykes cut the Palaeoproterozoic sequence and has a magnetic expression. Geological sequence in the project area is known for its gold potential in the region. In the reporting year 2008-09, GBS Gold Australia was declared under voluntary receivership, and therefore, only a peripheral review of the tenement was undertaken. Work completed during the reporting period included, reconnaissance visit, technical review of the tenement, planning for up-coming field season and report writing and tenement management activities. An anticipated work program under new administration will include ground-truthing previous areas of anomalism, infill soil and rock chip sampling and some exploratory RAB/RC drilling in areas that are deemed worthy. The basic model for exploration within the tenement will be to investigate areas that contain anomalous breccia zones similar to that of Maud Creek in the hope of finding a repetition of this type of deposit.