Annual exploration report EL 24058 Yam Creek East year ending 9 August 2009

Abstract

EL 24058 is located about 150 km SE of Darwin, NT and 20km ESE of Burnside's Brocks Creek mine office. It lies just east of the Yam Creek-North Point mining centre. The tenement was granted on 10 August 2004 and expires on 9 August 2010. It comprises one graticular block that comprises approximately 3.33 km2. Tenements Holders are the Buffalo Creek Mines Pty Ltd (50%) and Territory Goldfields Pty Ltd (50%) are managed by Burnside Operations Pty Ltd, which is wholly owned subsidiary of GBS Gold Australia Pty Ltd. EL 24058 comprises a portion of South Alligator Group sediments that lie on the north western flank of the Burrundie Dome, a regional anticlinal structure. The Margaret Syncline containing Mount Bonnie Formation rocks lies to the west and separates the older Burrundie Dome from the Yam Creek sequence. On 15 September 2008, GBS Gold Australia was declared under voluntary receivership ,and all exploration and mining assets including EL 24058 were placed under Care and Maintenance. As a result, only a technical review of the tenement was undertaken which identified a significant potential of the project area. GBS Gold regards the tenement highly and could provide mill feed in the future. In 2009-10 reporting year, project area will be explored for gold and base metals 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.