Annual exploration report for EL 23270 for the period ending 19 February 2007 Burnside Project

Abstract

During 2006, technical and human resources focused on the re-commissioning of dual CIL 2.5 MT plant at Union Reefs, and establishing gold resources at Brocks Creek, Fountain Head, Rising Tide and Cosmo Deeps. Therefore, exploration activities on the tenement mainly included reconnaissance visit, data entry and validation into DataShed and a technical review. GBS Gold Australia regards the tenement as a strategic asset and with the identification of target for gold mineralisation, it is expected that in the coming years, ground truthing with geochemical sampling exercise will take place. With encouraging results, RAB drill will try to intersect anomalous lithologies.