Annual exploration report on EL 24018 Hayes Creek East year ending 9 August 2009

Abstract

EL 24018 is located about 140 km SE of Darwin, NT. It was granted on 10 August 2004 and expires on 9 August 2010. The tenement comprises seven sub-blocks that cover approximately 2,331 hectares (23.37km2). The EL is registered in the names of Territory Goldfields NL and Buffalo Creek Mines NL in equal shares. During 2005-2006, GBS Gold Australia Pty Ltd successfully made a takeover of Northern Gold NL and has purchased Harmony Gold (through subsidiary Buffalo Creek Mines) 50% share of the Burnside Project as of 1 April 2006. The tenement largely covers a tract of the McMinns Bluff Granite that has been unconformably overlain by Mesoproterozoic Tolmer Group sandstone, conglomeratic sandstone and subordinate dolomite. The more resistant Tolmer Group has formed an arcuate escarpment that faces north on the south side of the valley. Table-tops of Cretaceous sandstone overlie the granite to the east. To the north, rocks of the South Alligator and Finniss River groups are also present. An important feature is the presence of Hayes Creek Fault which transacts the area from NE to SW. During the reporting period, project area was reviewed for the presence of uranium mineralisation. Initially, there was no significant encouragement; however, during 2008-2009 drilling campaign significant uranium mineralisation was discovered along the Hays Creek Fault which included prospects like Thunderball (EL 23431), Corkscrew and Bella Rose. EL 24018 is located towards SW of the Thunderball uranium prospect, and is intersected by Hays Creek Fault which appears to have control over uranium mineralisation. Therefore, further drilling program may intersect another uranium mineralised area within EL 24018. EL 24018 is a significant asset which holds gold, uranium and base metals potential. Current technical review identified multi-commodity potential of the project which Crocodile Gold along with its JV partner intends to explore. A program of geological mapping, geochemical sampling and possible Aircore/RAB drilling will be undertaken to fully assess the mineral potential of the area.