Partial reduction report on EL 24151

Abstract

Previous owner GBS Gold Australia went into voluntary administration on 15 September 2008 and all assets including EL 24151 were placed under care and maintenance. After due diligence, Crocodile Gold Australia announced to purchase all assets held by GBS Gold Australia in the Northern Territory. After meeting regulatory and statuary requirements, these assets including EL 24151 were transferred to Crocodile Gold Australia. Crocodile Gold Australia immediately commenced exploration, mining and processing activities in the region. Mining started from Brocks Creek underground and Chinese South (Extension) open pit; hauling ore to Union Reefs gold mill for treatment. Crocodile Gold Australia also commenced an in-depth technical review of the project area in order to understand the mineral potential of the area. A detailed literature search and review was undertaken which identified four eastern blocks of the tenement has no mineral potential. Processing and interpretation of geophysical did not reveal any significant anomaly which could warrant any further exploration. As a result of that it was decided to surrender four blocks (SD52642X, SD52642W, SD52642V and SD52641P).