Annual exploration report MLN 414, MLN 415, MLN 416, MLN 417 and MLN 418 for period ending 31 December 2005 Burnside Project

Abstract

MLN 414-418 inclusive cover the Rhodes gold prospect, 115 km SE of Darwin and 3 km NE of Mt Paqualin, on the Burnside 1:50,000 map sheet. The Rhodes deposit comprises a strategic gold resource of low to medium grade that has been drilled by previous explorers. Northern Gold estimated a non-JORC global resource of 700,000t @ 1.80g/t Au. After the tenements were incorporated into the Burnside JV in April 2002, Rhodes was ranked as a potential source of low grade mill feed. In 2005, GBS made a successful takeover of Northern Gold, and entered an agreement to purchase Harmony's 50% share of the Burnside JV, giving GBS 100% of the project. The bulk of the work during the year focussed on loading and modifying drill hole data into DataShed. This exercise is still in progress. The primary focus of GBS Gold in early 2006 is to complete feasibility work with the aim of bringing the resources at Zapopan, Cosmo, and Fountain Head into production. The Kazi and Rhodes deposits are considered important secondary targets, and further drilling is planned in the second half of 2006.