Annual exploration report Maud Creek Project Year ending 31 December 2009 MCN's 4145-4146; MCN's 4149-4152, MCN's 4218-4225, MCN's 4343-4348, MLN 1978

Abstract

The Maud Creek Project is situated 18km east of the town of Katherine NT and 275km south east of Darwin. It also includes Red Queen/Chessman group of tenements. Ownership of the tenements has changed several times, and now controlled by Terra Gold Mining Pty Ltd, which is a wholly owned subsidiary of GBS Gold Australia Pty Ltd (liquidated). GBS Gold Australia went into voluntary administration on 15 September 2009, and all mining and exploration assets were placed under care and maintenance. Crocodile Gold Australia acquired the Maud Creek Group of tenements along with other assets in November 2009. The Maud Creek goldfield is confined to the iron-rich quartz reefs hosted by the Maud Dolerite and tuffs of the Tollis Formation. Gold is fine-grained and is associated with pyrite, chalcopyrite and secondary copper mineralisation. Wall rocks are often brecciated and cemented by iron oxides. At the Red Queen/Chessmen prospect gold occurs within mafic fragmental volcanic rocks as well as black chert and arenaceous sediments characterised by pyritic mafic fragmental rocks, possibly part of the Dorothy Creek Volcanic Member. A number of resource assessments campaigns have been conducted, and the most recent by the Terra Mining Pty Ltd, which stands at measured and indicated Resource of 9.3 Mt at 3.1g/t for 0.935 Moz contained Au. Crocodile Gold Australia regards the Maud Creek Group of tenements highly due to the presence of a resource of 0.935 million oz of gold, and further mineral potential of the project area. An appraisal of the project area has begun to assess the mining and processing options to develop the Maud Creek Gold deposit. Other exploration activities included reconnaissance visits, data review, tenement administration and report writing. An exploration program for year 2010 will include detail project review, and if some resources became available, then a program of soil/rock chip sampling, and drilling will be undertaken.