Annual exploration report for ERL 130 Esmeralda, Union Reefs Project year ending 16 December 2009

Abstract

ERL 130 is a significant tenement within Crocodile Gold Australia's port folio, and is located about 210 km SE of Darwin, NT, and 8km north east of Pine Creek. Crocodile Gold Australia Pty Ltd acquired the tenement in November 2009 as part of the acquisition of all assets held by GBS Gold Australia Pty Ltd (liquidated) in the Northern Territory. Previous exploration by Cyprus Gold Corporation and Acacia Resources had outlined two significant adjacent and sub parallel gold resources (A and B), known as Esmeralda deposit which is located some 4km south of the Union Reefs mill. AngloGold estimated that the deposit at 0.7g/t cut-off, contains a combined inferred resource of 1.26Mt at 1.62g/t Au. (66,000oz). Within the project area geology is dominated by clastic rocks of the Mt Bonnie Formation that is the uppermost formation of the South Alligator Group, and the Burrell Creek Formation which is the lowest unit of the Finniss River Group. They have been intruded by the Palaeoproterozoic granites such as Allamber Springs towards east and Tabletop Granite towards west. During the reporting period, GBS Gold Australia went into voluntary administration, and as a result of that all assets including ERL 130 were placed under care and maintenance. Several Administrators embarked to restructure the company or prepare assets for sale. Most of reporting year was spent in tenement valuation, technical review and ranking exercise in order to prepare assets for sale. In March 2009, Crocodile Gold Australia acquired all assets held by GBS Gold Australia (liquidated) in the Northern Territory. After meeting all statutory and regulatory requirements, these assets were transferred to Crocodile Gold Australia on 9 November 2009. In the next reporting period, resource and ore body modelling of gold mineralisation present within ERL 130 will be undertaken, which will help to understand resource present more accurately. It will also help to identify mineralisation trend within the project area. A program of soil /rock chip sampling will also be undertaken, and if encouraging result received, it will lead to RC drilling.