Annual exploration report Maud Creek Project year ending 31 December 2008

Abstract

The Maud Creek Project is situated 18km east of the town of Katherine NT and 275km south east of Darwin. It also includes Red Queen/Chessman group of tenements. Ownership of the tenements has changed several times, and now controlled by Terra Gold Mining Pty Ltd, which is a wholly owned subsidiary of GBS Gold Australia Pty Ltd. The Maud Creek goldfield is confined to the iron-rich quartz reefs hosted by the Maud Dolerite and tuffs of the Tollis Formation. Gold is fine-grained and is associated with pyrite, chalcopyrite and secondary copper mineralisation. Wall rocks are often brecciated and cemented by iron oxides. At the Red Queen/Chessmen prospect gold occurs within mafic fragmental volcanic rocks as well as black chert and arenaceous sediments characterised by pyritic mafic fragmental rocks, possibly part of the Dorothy Creek Volcanic Member. Exploration of the projected area commenced in 1966 and since then a number of programs have been conducted to ascertain the nature of mineralisation and determine the resources. A number of resource assessments campaigns have been conducted, and the most recent by the Terra Mining Pty Ltd, which stands at measured and indicated Resource of 9.3 Mt at 3.1g/t for 0.935 Moz contained Au. In 2008 company announced the development of project subject to approval by the regulatory authorities. However, GBS Gold Australia was declared under voluntarily receivership and now projects have been placed under care and maintenance. During the reporting exploration activities included reconnaissance visits, data review, tenement administration and report writing. Currently efforts are underway to restructure the company or find financial resources to re-commence the development, mining and processing operations again.