Annual exploration report on EL 23583, for period ending 15 July 2010

Abstract

EL 23583 is a strategic landing holding of 2 blocks, which is situated approximately 220 km SE of Darwin NT, and around 2 km south of the Pine Creek Township. The tenement was granted on 16 July 2003 to Buffalo Creek Mines Pty Ltd (50%) and Territory Goldfields NL (50%) which were the subsidiaries of GBS Gold Australia. On 6 November 2009, Crocodile Gold Australia acquired EL 23583 and other assets held by GBS Gold Australia (liquidated) in the Northern Territory. The tenement overlies the Burrell Creek Formation of the Finniss River Group. The Mount Bonnie Formation sediments crop out further north of the Licence, but are constrained within a fold ('Enterprise fold') that plunges south through of EL 23583. Meta-sediments in the project area are intruded by the Table Top, Allamber Springs, and McCarthys Granites and are responsible for the development of contact aureole which contains most of the gold mineralisation. During reporting year, EL 23583 was reviewed, ranked and valuated under the instructions from company administrators. Review of previous geochemical and drilling data indicates that the EL 23583 has significant potential for gold and base metal metals mineralisation, which new owner will pursue aggressively. Other exploration activities were reconnaissance visits of the area, data compilation, tenement management and annual exploration report preparation. In 2010-11 reporting year, the project area will be explored for gold and base metals mineralisation. For this purpose, selected parts of the tenement will undergo soil/rock chip sampling along with geological mapping. If encouraging results received, then some RAB/RC drilling may also take place.