Annual report on EL 24682 AuQuest Project for period ending 2 February 2009

Abstract

EL 24682 is an important tenement which is located about 90 km east of Darwin and 8 km northwest of the Toms Gully Gold Mine. The EL is part of tenement package which GBS Gold Australia Pty Ltd acquired form the Renison Consolidated Mines Limited in 2007. It was granted on 1st February 2006 for a period of 6 years. The tenement comprises 34 blocks and covers 107.5 km2. EL 24682 is located within the Pine Creek Orogen, which has been interpreted as an intra-cratonic basin lying on an Archaean basement, and containing a 14 km thick sequence of Palaeoproterozoic sediments, accompanied by lesser volcanics, granitic plutons and dolerite intrusions. Predominant rocks exposed in the project area belong to the Wildman Siltstone, Koolpin Formation, Mt Bonnie Formation, Gerowie Tuff and Burrell Creek Formation. Palaeoproterozoic strata have been intruded by the Mount Bundey Granite. In the reporting period, the area was flown by high resolution geophysical survey (magnetic and radiometric) which revealed prospective geological structures in the project area. These are interpreted as deep-seated faults along with a doloritic dyke transecting the EL 24682. Geological, geochemical and geophysical data indicate that the fault structure located in the south-western part of the tenement may be prospective for gold mineralisation. In addition, a number of subtle magnetic anomalies present in the project area could also contain gold mineralisation. However, radiometric data reveal no radiometric anomalous areas which could be due to thick alluvial cover over the bed rock geology. Proposed exploration program for year 2009-10 include air core drilling in order to reach bed rock geology, detail mapping of the selected areas, and interpretation of EM geophysical data to identify areas of mineralisation.