Annual exploration report Golden Dyke Group MLN 794 to 795 and MCN 1456 to 1463 year ending 31 December 2008

Abstract

The Golden Dyke Group of tenements is an integral part of GBS Gold Australia's port folio. It is situated approximately 140km SE of Darwin, Northern Territory and 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 and Union Reefs ore treatment facility. During 2008 work completed over the Bridge Creek group of tenements consisted of reconnaissance visit, data review, report preparation and tenement administration. On 15 September 2008, GBS Gold Australia was declared under voluntary receivership, which led to cessation of all exploration and mining activities. There is a possibility that under the present circumstances where gold is holding well as compared to other commodities, an investor will come on-board and operations of the company will re-commence again. An exploration program for year 2009 will include re-evaluation of the project area. It is likely that the project will remain on low-ranking until such time that it becomes feasible to mine.