Annual exploration report Rhodes Tenement Group year ending 31 December 2006 MLN 414 - MLN 418

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 at 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. During 2006-2007 work completed over the Rhodes Tenement group consisted of; Planning for the upcoming field season; Administrative Duties; Report Preparation; and Data Integration and validation for the Data Shed database. Work in the region has been delayed 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 and consolidation in the Rhodes tenements will be an important part of GBS Golds plan to continue to replenish supply to the mill. The region is considered important for review to take into account the favourable gold price.