Annual exploration report on MCN 3839, MCN 3840, MCN 3841, MCN 3842, MCN 3843 and MCN 3844 for period ending 31 December 2006 Eva Valley, Yeuralba Group

Abstract

The Eva Valley tenement group comprises six MCNs (3839 - 3844) centred some 68km north east of Katherine NT and 3km north of the old Eva Valley (Manyallaluk) homestead. They were originally pegged by Denehurst Limited to protect the Copper Flower prospect prior to surrender of EL 4457. The tenements were transferred to Harmony Gold in 2001. During 2005, Terra Gold purchased Harmony Gold's Maud Creek tenements, including the Eva Valley tenements. Since 2005, Terra Gold is wholly subsidiary of GBS Gold Australia Pty Ltd. The tenements cover a prospective sector of Tollis Formation volcanics, greywackes, Maud Dolerite and banded ironstones striking NNW. The prospect has been explored for gold and base metals mineralisation since the mid 1960s. Significant gold and base metals anomalies have been identified at a number of localities. However, a detailed exploration program has not been carried out to test the full potential of the area. GBS Gold intends to explore and valuate the area commencing with in-depth technical review.