Annual report MLN 1059 Moline for period ending 15 August 2006

Abstract

The Moline tenement group comprises EL's 22966, 22967, 22968, 22970, 23605, 24127, 24262 and MLN 1059. This report deals exclusively with MLN 1059 which contains the Hercules, School, Moline and Tumbling Dice pits along with several smaller satellite pits. GBS subsidiary Terra Gold Mining Ltd has an option agreement with Michael Teelow to explore and prospect for minerals within the Moline group of tenements. Company changes (from acquiring Northern Gold NL, and 100% control of the Burnside JV) have limited the amount of work conducted on MLN 1059 to date. During the 2005/2006 year of tenure exploration work was limited to data and literature reviews, identification and compilation of geochemical datasets and databases, field mapping and drill planning for 4 diamond drill holes to test depth extensions of mineralisation under the Hercules Pit. However, work done during the period 15th August 2006 to 31st October 2006 has been included in this report for completeness, as it was organised and supposed to be completed within the reporting period. This work covers surveys of the 4 planned drill holes, drill pad clearing, access for drilling and drilling of four RC pre-collar/HQ diamond-tail holes for a total of 124m RC and 903.62m HQ diamond core. The tenement encompasses a suite of metasedimentary rocks belonging to the Burrell Creek and Mt Bonnie Formations of the Pine Creek Geosyncline. Locally these rocks are isoclinally folded with fold axes plunging at shallow angles to the south east. Mineralisation is found in zones of pyrite, quartz, and brecciated country rock with minor veinlets of sphalerite, tetrahedrite, arsenopyrite, chalcopyrite and carbonates. The majority of results are still outstanding however initial results include the following intervals; In RC pre-collars best results are MEX003 2m at3.26g/T Au from surface and MEX001 2m at 3.2g/T Au from 8m. In HQ Diamond Core best results are MEX004 0.86m at 6.53g/T Au from 70m and 0.97m at 8.45g/T Au from 88.3m, in MEX003 2.09m at1.12g/T Au and 1.98m at 4.45g/T Au from 194 and 203m respectively.