Annual report MLN 1059 Moline for period ending 15 August 2008

Abstract

MLN 1059 covers Moline Gold Field (e.g Hercules, School, Moline and Tumbling Dice) which is located about 220 km SE of Darwin. GBS subsidiary Terra Gold Mining Ltd has an option agreement with Michael Teelow (title holder) to explore and mine gold within the tenement. The tenement encompasses a suite of meta-sedimentary rocks which belong to the Burrell Creek and Mt Bonnie Formations. Locally these rocks are isoclinally folded with fold axes plunging at shallow angles to the south east. Mineralisation is found in zones of pyrite, quartz, and brecciated country rock with minor veinlets of sphalerite, tetrahedrite, arsenopyrite, chalcopyrite and carbonates. During the reporting period, an appraisal of previous data was undertaken which suggested that Moline Project area still hold significant potential for gold mineralisation. With additional resources defined from surrounding tenements, the Moline project can sustains its own infrastructure and can run profitable operation. However, during the reporting period, much attention remained focused on bringing online projects such as Cosmo Deeps, Toms Gully and Maud Creek with a budget of $10's of millions. On 15 September 2008, GBS Gold Australia and its subsidiaries came under voluntary administration, and mining projects have been placed under care and maintenance. The Moline project will remain under review and on availability of financial resources, a campaign of in-fill soil sampling will be carried out, and if new targets are identified that will lead to RC drilling.