Partial relinquishment report for EL 24127 'Bowerbird', year ending 14 October 2006

Abstract

EL 24127 is located approximately 190km SE of Darwin and 2km to 10km to the north and west of the Moline mine. The tenement was granted on the 15th October 2004 to TEELOW, Michael Daniel. At the end of the second year of exploration it was decided to relinquish ground. The ground was reduced from 29 blocks (88.33 km2) to 18 blocks (approx 60 km2). The retained area is in two parts, three blocks in the SW and 15 blocks in the NE. The blocks recommended for surrender are underlain mainly by granite in the west. Work completed over the relinquished ground within EL24127 included: planning / review of data, administrative duties, and report preparation/desktop study to recommend partial surrender. Work in the region has been deferred because company resources have been concentrated on the recommencement of mining in the district by GBS Gold. Commissioning of the of the dual-mill 2.5Mtpa Union Reefs CIL gold plant in the Northern Territory commenced as of September 2006. The two initial open pit (FountainHead and Rising Tide deposits) ore sources came online mid September and High Grade ore was sourced from the Brocks Creek Underground Mine (Zapopan) in late September. Exploration will be an integral part of GBS Gold's plan to continue to replenish supply to the mill.