Annual exploration report combined technical report for EL 22966, EL 22967, EL 22968, EL 22970, EL 23605, EL 24127, EL 24262, for the period ending 30 May 2010 Moline Group

Abstract

The Moline Group of tenements is located about 200 km SE of Darwin along the Kakadu Highway with a distance of about 45 km from Pine Creek. It comprises 7 exploration licences (EL 22966, EL 22967 EL 22968, EL 22970, EL 23605, EL 24127, EL 24262) and surrounds the Moline gold field. Terra Gold Mining Pty Ltd, a wholly owned subsidiary of GBS Gold Australia acquired exploration rights from tenement owner (Mike Teelow) in 2003. The exploration tenements are situated within the central region of the Pine Creek Orogen, which is characterised by open to tight, upright N to NW-trending folds of the Palaeoproterozoic meta-sedimentary and volcanic rocks. NW-trending overturned anticlines of the Mt Bonnie Formation sediments dominate the central tenements, with some exposures of refolded Gerowie Tuff further to the northwest. Folded Burrell Creek Formation sediments are the dominant lithology further north and south on EL 24127, EL24262 and EL 22966. During most of the year under review, GBS Gold Australia remained under voluntary administration and as a result of that it remained under care and maintenance. However, under the instructions from Several Administrators, a technical review, tenement ranking and evaluation was undertaken. The technical review supports significant mineral potential of the project area. Project area contains a number of mined out gold deposits which have produced significant quantities of gold in the past, and the area still has considerable exploration potential. In 2010-11 reporting year, project area will be explored for gold uranium 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.