Annual exploration report MLN 766 and MLN 1060 Bridge Creek Group year ending 31 December 2009

Abstract

The Bridge Creek Group of tenements (MLN 766 and MLN 1060) are located approximately 125km SSE of Darwin and 35km SE of Adelaide River. The project was managed by the Burnside Operations P/L (Burnside), a subsidiary of GBS Gold Australia Pty Ltd (liquidated) until September 2008. A joint venture agreement was formalised between Territory Goldfields NL (Northern Gold NL subsidiary) and Buffalo Creek Mines Pty Ltd (Harmony Gold Australia Ltd subsidiary) in April 2002. The JV merged certain mining assets within a 30km radius of the Brocks Creek mill and included the Bridge Creek tenements. On September 2008, GBS Gold Australia went into voluntary administration and assets held by the company were liquidated. In November 2009, Crocodile Gold Australia purchased all assets held by GBS Gold Australia in the Northern Territory. The tenements cover a sector of the Howley Anticline, approximately 12 km along strike north from the Cosmopolitan Howley Gold Mine. Gold mineralisation is hosted by the Koolpin Formation, Gerowie Tuff and partly by the Zamu Dolerite. Northern Gold NL explored the area with RC drilling, diamond drilling, resource modelling and metallurgical test work on the Bridge Creek primary resource that lies within the tenements. So far, a marginal resource of 584,000t at 1.81 g/t Au has been delineated. During the reporting year, the Bridge Creek Group of tenements remained under care and maintenance. The main activity was review, valuation and tenement ranking in order to prepare assets for sale. Liquidated assets of GBS Gold were purchased by Crocodile Gold Australia on 9 November 2009, and commenced mining and exploration activities in the region. Other activities were reconnaissance visits, tenement administration and report writing. During the next reporting year, a program of soil/rock chip sampling will be undertaken, and geophysical assessment of the project area will be undertaken. This will lead to RC/RAB drilling to test the target area.