Annual report on MLN 1058 Toms Gully Gold Mine year ending 2 August 2009

Abstract

MLN 1058 hosts the Toms Gully Gold mine and processing plant and is located approximately 90 km south east of Darwin, Northern Territory, and some five kilometers south of the Arnhem Highway. It covers about 681.8 hectares and was granted on 8 March 1989 and will expire on 2 August 2014. In July 2007, by virtue of an agreement, GBS Gold Australia acquired Toms Gully tenement package including gold plant. The Project area is located within the northern portion of the Pine Creek Orogen. It mostly contains the Wildman Siltstone, a sequence of tightly folded strata with an unconformable contact with the Koolpin Formation, which covers south-western corner of MLN 1058. Towards south-east, Mount Bundey Granite intrudes the host sequence, imparting contact metamorphic aureole which could be several kilometers wide. In April 2009, Forbes Manhattan, a Canadian investment bank through its subsidiary Crocodile Gold Australia, acquired all GBS Gold Australia's assets with the intention to re-commence gold production in an immediate future. Currently, registration of all tenements against Crocodile Gold is underway, and it is expected that within a few weeks this process will be completed. It is expected that after the transfer of assets, including Toms Gully project, exploration and mining activities will commence immediately. Toms Gully feasibility study to commence production is already taking place. A new resource definition program will be undertaken in order to delineate new resource and better define already existing resource base.