Annual exploration report Caroline Group (Union Reefs Project) year ending November 4th 2006 MLN51-MLN57 inclusive

Abstract

The Caroline Lease Group (MLN 51-MLN 57) is situated 170 km SE of Darwin, NT, and 8 km north of Pine Creek. The Caroline tenements are situated 4 km south of the Union Reefs mill and have not yet been the subject of modern open pit or underground mining operations. The Caroline leases were initially the subject of a base metals search in the late 1960s. Subsequent soil and costeaning work by Aztec Resources showed gold and arsenic anomalism occurred adjacent to a zone of historic shallow base metal workings. Acacia Resources Limited explored the area in the 1990s. Exploratory RC drilling located narrow but significant gold intercepts towards the southern end of the group, adjacent to a regionally significant but barren dolerite dyke. To date the Caroline prospect has not been attractive to warrant mining of the narrow resource. During 2005-2006, GBS Gold Pty Ltd successfully made a takeover of Northern Gold NL and has purchased Harmony Golds (through subsidiary Buffalo Creek Mines) 50% share of the Burnside Project as of 1st of April 2006. The Caroline Group of leases is already at a mature stage of exploration. No field work was completed on the Caroline leases during the report period.