Annual exploration report Elizabeth Tenement Group, Union Reef Project year ending 31 December 2009 MCN 506, 507, 734, 735, 738, MLN 135, 779, 780, 822, 856

Abstract

The Elizabeth Group of tenements is located approximately 168km south-east of Darwin, Northern Territory. Total area covered by the group of tenement is 65.42 hectares. This report summarises exploration work completed for the year ending 31 December 2009. The Elizabeth tenement group is situated within the Pine Creek Orogen, a tightly folded sequence of Lower Proterozoic rocks, 10km to 14km in thickness, laid down on a rifted granitic Archaean basement during the interval approximately 2.2-1.87Ga. The sequence is dominated by pelitic and psammitic (continental shelf shallow marine) sediments with locally significant inter-layered cherty tuff units. Previous exploration programs have located significant gold mineralised intercepts during drilling. However, mineralisation was hosted by narrow shear systems and confined to erratic plunging shoots that have been historically mined out to 30m. During most of the reporting period, tenement group remained under care and maintenance. Exploration activities at the Elizabeth Group of tenements mainly included a review, ranking exercise, valuation, reconnaissance visits, tenement administration and report writing. On 9th November 2009, Crocodile Gold Australia, after meeting all statutory and regulatory requirements, took over the control of all assets held by GBs Gold Australia (liquidated). New owner has commenced a review of this group of tenements. If, encouraging results received, than an exploration program for year 2010 will include infill soil sampling and geological mapping of the area. It will lead to RC/RAB drilling and assaying.