Annual report for MCN 3705, MCN 3706, MCN 3707 and MLN 1103 for the period ending 30 April 2010 Woolwonga Group, Burnside Project

Abstract

The Woolwonga Group (MLN 1103, MCN's 3705 3707) comprises strategic landholding which is located about 130 km SE of Darwin, NT and 16 km NE of the Brocks Creek mine. It covers the Woolwonga gold mine which is situated within the historical gold mining field. GBS Gold Australia (liquidated) Pty Ltd acquired the tenements in 2005 through a subsidiary Northern Gold Limited. GBS Gold Australia went into voluntary administration on 15 September 2008 and liquidated assets of the company were purchased by Crocodile Gold Australia on 6 November 2009. Gold mineralisation at Woolwonga is associated with quartz-sulphide veins which fill faults and fractures set in Mt Bonnie Formation. Mineralisation and historic workings on vein outcrops occurred over the full length of the original Main Ridge, and colluvial shedding from this extended for 500m SE of the ridge and was worked extensively by Chinese workers from the late 1880's to early in the 20th century. The gold is controlled by three main structural features such as the axial zone of the Woolwonga Anticline, SE dipping fracture zones and competency contrast sites. During most of the reporting period, the Woolwonga Group of tenements remained under voluntary receivership. Under the instructions from Several Administrators, a review, tenement ranking and evaluation was undertaken. Review of the group of tenements supports significant mineral potential of the project area. It contains an important mined out Woolwonga deposit which has produced significant quantities of gold in the past, and the area still has considerable exploration potential. Technical review of the data suggests that there is possibility of additional ore. In 2010-11 reporting year, project area will be explored for gold and base metal mineralisation. For this purpose, area identified during this review will undergo soil/rock chip sampling along with geological mapping. If encouraging results received, some RAB/RC drilling may also take place.