Annual exploration report EL 10347 for period ending 14 April 2006 (sic 2007) Golden Dyke Dome Burnside Project NT

Abstract

EL 10347 is located 145km SE of Darwin, and is centred on the Golden Dyke Dome, a faulted anticlinal feature at the southern end of the historic Yam Creek-Golden Dyke gold-mineralised belt. Several historic gold mines occur within the tenement including Golden Dyke, Davies No 2, Fishers Adit, Afghans Gully and Langley?s. Modern exploration work at Golden Dyke Dome commenced in the 1970s and comprised intensive programs of geological mapping, costeaning, stream sampling, soil sampling diamond drilling and RC drilling. This work outlined open pit gold resources that were mined in 1984 by Henry and Walker. They mined a total of 295,000t of ore at 4.0g Au/t from four pits and treated the ore at the Mt Bonnie plant. Subsequent reviews indicated that some residual gold mineralisation was present. Northern Gold NL acquired the area from Dominion Mining in the mid 1990s, conducted extensive technical reviews and did rehabilitation work in the vicinity of the Golden Dyke open pit. In April 2002 Territory Goldfields NL (Northern Gold NL) entered into a joint venture agreement with Buffalo Creek Mines NL (?Burnside JV?) that included a schedule of tenements and mining assets within a 30km radius of the Brocks Creek treatment plant. During the reporting year much effort was diverted to assess the previous data and resources at the Golden Dyke deposit, and possibility of delineating additional resources. Currently, at Golden Dyke, a resource of 1.6 Mt @3.8 g/t Au is present. Until now, all the oxide ore has been mined out and treated, and remaining resource is mainly refractory ore where gold is tied up in sulfide phases. At present, GBS Gold is assessing GEOCOAT(r) technology to process refractory ores. If satisfactory result received, then in 2008-09 the Company expects to construct a flotation plant and bio-oxidation heap leach facility at the Union Reefs Plant, mainly for the Maud Creek refractory ore. Following this development, a feasibility study will be undertaken to construct additional floating circuit which will allow to process sulfide ores from Golden Dyke, Iron Blow and any additional ore present in the area.