Annual exploration report for EL 23432 for the period ending 8 May 2007 Hayes Creek North Burnside Project NT

Abstract

EL 23432 is located with Pine Creek Orogen, about 140km SE of Darwin, Northern Territory, and 3km north of Hayes Creek roadhouse on the Stuart Highway. The tenement was granted to the Burnside Joint Venture, managed by Burnside Operations P/L comprising Territory Goldfields NL and Buffalo Creek Mines NL. These are the wholly owned subsidiaries of GBS Gold Australia Pty Ltd. This is the fourth year following grant of the licence and the annual expenditure was set at $1000. Three of the six blocks were nominated for surrender before the anniversary of year two. Work on EL 23432 has been peripheral as the emphasis has been on establishing and proving up of gold resources at several deposits such as Brocks Creek, Rising Tide, Fountain Head and Cosmo Deeps to feed the Union Reefs mill which was re-commissioned in September 2006. During the reporting period, a technical review of the available geological and geophysical data was undertaken, which identified that northern part of the tenement may have some potential for gold mineralisation. It is expected that in the following year, exploration will take an active role in the area, which will lead to ground-truthing, soil/rock chip sampling, and possible RC/RAB drilling, if encouraging results received.