Annual exploration report for EL 24409 for period ending 5 May 2007 Brocks South West Burnside Project NT

Abstract

EL 24409 is situated approximately 150km SE of Darwin NT. It covers 22.1 km2 and is located SW of the Brock's Creek Project area. EL 24409 was granted on 6 May 2005 and expires on 5 May 2011. It was granted to Buffalo Creek Mines Pty Ltd (50%) and Territory Goldfields NL (50%), which were part of the Burnside JV. During 2005, GBS successfully made a takeover bid for the JV through Northern Gold NL, and has reached an agreement to purchase Harmony's 50% share of the Burnside project. GBS Gold have 100% of the Burnside Project as of 1st April 2006. Most of the tenement overlies the Burrell Creek Formation of the Finniss River Group. The southern 2 blocks are mapped with Mt Bonnie Formation sediments from the South Alligator Group. These rock units crop out sparsely in the tenement. The area has been explored by a number of companies which led to the identification of a number of anomalous gold zones. During the reporting period, a technical review of the available data was undertaken which suggested that area is characterised by the presence of prospective geological setting, which could host similar style of gold mineralisation as found in the Burnside Project area. During the year 2007-08, identified area within EL 24409 will be checked thoroughly by geological mapping, soil sampling and possible aircore drilling. Particular attention will be given to already identified anomalous zones.