Annual exploration report on the Golden Dyke Group MLN 794-795 and MCN 1456-1463 year ending 31 December 2007

Abstract

The Golden Dyke Group of tenements is situated approximately 140 km SE of Darwin, Northern Territory. It comprises 10 mining tenements which are located along the western limb of the Golden Dyke Dome, a complex folded structure associated with historic gold and base metal mines. These tenements have been actively explored for gold and base metals by several companies, utilising drilling, trenching, pitting, dozing and geochemical methods. In the project area, gold production from open pits and shafts occurred up to 1984. The ownership of this group of tenement has changed many times. Now GBS Gold Australia Pty Ltd is the sole owner of the project. In previous years, work on the Golden Dyke tenement group comprised compilation of geological, historical exploration data and acquiring of SPOT images. The area is at a historically mature stage of exploration and easily accessible oxide gold resources in the area had already been extracted by open pit prior to 1985. As a consequence the group is ranked at a low-medium level with the scope to generate further gold resources in the future. GBS Gold Australia Pty Ltd regards the Golden Dyke Group of tenements an important asset and its significance is highlighted due to the group's close proximity to the Burnside project area where mining is taking place since August 2006. Currently company resources are focused in bringing on-line projects such as Toms Gully, Cosmo Deeps and Maud Creek in 2008 and 2009 respectively with a budget of several million dollars. As a result, Golden Dyke project has been placed on low-medium ranking and its exploration and development has been delayed. Exploration and consolidation in the Golden Dyke tenements will be an important part of the company plan. New appraisal of the area will be carried out over the course of 2008, and previous work will be reviewed. This will include field visits, preliminary sampling and a proposed drilling plan if warranted.