Annual report on MLN 1083 Rustler's Roost Project, year ended 31 December 2009

Abstract

MLN 1083 is located about 90 km east of Darwin and about 10 km SE of Toms Gully gold Mine. The tenement was granted on 16 May 1997 and will expire on 31 December 2020. It has 755.6 hectares. Currently MLN 1083 is registered against the names of Rustler's Roost Mining Pty Ltd (80%), Fletcher (10%) and On (10%). In turn, Valencia Ventures Inc is majority owner and manager of the project area. In the project area gold mining took place in the 1990's and at present MLN 1083 is under care and maintenance. During 1994 -1998 period, a total of 4.71 Mt at 1.05 g/t Au ore was mined, and 113, 000 oz Au was produced at a recovery rate of approximately 70%. Exploration during that time has also delineated substantial low grade gold resource which stands at 21.7 Mt at 1.14 g/t. Currently, arrangements are underway to transfer MLN 1083 to Crocodile Gold Australia along with other assets, managed and owned by Valencia Ventures. After securing the control of the project, Crocodile Gold Australia will undertake an in-depth review of the project and will determine the further course of action. Therefore, during the reporting period no on-ground exploration activity was undertaken. In this period, a total of $2000.00 was spent, mainly on tenement management and report writing.