First annual exploration report on EL 24715, Mount Masson Project, year ending 28 February 2007

Abstract

EL 24715 is located approximately 140 km SE of Darwin and 50 km north of the township of Pine Creek. Tenement owner, Terra Gold Mining Pty Ltd is a wholly owned subsidiary of GBS Gold Australia Pty Ltd. This report covers the data review and status of the tenement during the year ended 29 February 2007. The tenement is centred around the Mount Harris tin mining fields and covers the Masson Mine and Jessops Mine which both produced quantities of tin concentrate. During 2006/2007 work completed over EL 24715 consisted of 1. Reconnaissance visit and planning for the upcoming field season 2. Compilation of previous work covering the region 3. Administrative Duties 4. Report Preparation. The region is considered important for a number of commodities such as gold, iron ore, uranium and tin/tungsten. A review of the geological setting of the area and exploration programmes conducted by previous explorers show significance of the project area for gold, iron ore, uranium and tin/tungsten mineralisation. GBS Gold regards the tenement a significant asset which has the potential to host several mineral commodities. With the introduction of a new dedicated regional exploration team starting in 2007, it is expected that work commitments to the EL will include an in-depth technical review of the available geological, geochemical and geophysical data to identify targets for various commodities. Supplemented by geochemical sampling, it will lead to RAB/RC drilling to test some of the selected areas. To pursue this programme of exploration, GBS Gold has also entered into an agreement with Territory Iron Limited to explore for iron ore in the project area.