Annual exploration report EL 23174 Au Quest Project year ending 18 September 2009

Abstract

EL 23174 is situated 80km East of Darwin NT and 3.5 km north of the Toms Gully Mine along the Arnhem Highway. On 25 July 2007, GBS Gold Australia Pty Ltd acquired all tenements and Toms Gully gold mine held by Renison Consolidated Mines NL, including EL 23174 in Toms Gully area, Northern Territory. EL 23174 is located within the Pine Creek Orogen, which has been interpreted as an intra-cratonic basin lying on an Archaean basement, and containing 14 km thick sequence of Proterozoic sediments, accompanied by lesser volcanics, granitic plutons and dolerite intrusions. In the tenement area rocks of the Mount Partridge Group, South Alligator Group and Finniss River Group are exposed. Much of reporting period ended on 18 September 2009 was used in assessing the high resolution geophysical data obtained in previous reporting period. It appears that due to thick alluvial sedimentary cover, magnetic survey did not succeed in obtaining information from the bed rock geology apart from a faint dyke-like feature located in the SE of the project area. In 2009, project area was flown by another high resolution TEMPSET geophysical survey. Preliminary examination of the TEMPEST profiles indicates thick folded graphitic siltstone units that are providing a conductive response throughout the area. These are thought to be prospective for gold, silver, base metals and uranium mineralisation. Tempset geophysical data have revealed interesting bed rock geology which appears to be dominated by conducting units suitable for gold, silver, base metals and uranium mineralisation. In the next reporting period, project area will be examined in details and anomalies will be drill-tested. Samples retrieved during drilling will be assayed for gold, base metals and uranium mineralisation.