Annual report MLN 1059 Moline for period ending 15 August 2007

Abstract

MLN 1059 is located about 220 km SE of Darwin and contains a number of abandoned mines/pits (e.g Hercules, School, Moline and Tumbling Dice). GBS subsidiary Terra Gold Mining Ltd has an option agreement with Michael Teelow (title holder) to explore and mine gold within the tenement. The tenement encompasses a suite of meta-sedimentary rocks belonging to the Burrell Creek and Mt Bonnie Formations of the Pine Creek Orogen. 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. During the reporting period, a soil survey was undertaken over the Moline Project area covering several exploration licences, and it also included MLN 1059. A total of 8 soil samples were retrieved and were analysed for Au, Cu, Pb, Zn and As. These samples came from the south-eastern corner of MLN 1059. Au ranges from 22 ppb to 90 ppb. EX2410 shows the highest concentration of Au, AS, Cu, Pb and Zn indicating a close association of base metals with gold mineralisation. An extensive program of soil sampling has commenced in the Moline Project, covering several tenements to assess the full potential of the area. It is expected that results of this program will be assessed in the next year. Identified target zones will be drill tested and this program will be extended onto MLN 1059. Drilling results reported in the last year's technical report further support the contention of gold resource extension within MLN 1059. GBS Gold intends to concentrate on the development of Cosmo Deeps, Maud Creek and Toms Gully project as a priority. The company regards MLN 1059 as a strategic asset which will provide significant resource inventory base in the near future.