Annual exploration report MCNS 68-91 Year ending 31 December 2009

Abstract

MCNs 68-91 are located about 100 km east of Darwin and about 10 km south east of Toms Gully Gold mine. These MCNs are of strategic significant and cover prospective areas around Quest 29 gold deposit. Crocodile Gold Australia acquired these tenements after purchasing all assets held by GBS Gold Australia (liquidated) in November 2009. The Project area is located within the northern portion of the Pine Creek Orogen. The MCNs mainly lie within the South Alligator Group, a sequence of tightly folded strata which unconformably overlies the Mount Partridge Group. Towards north, Mount Bundy Granite intrudes the orogenic sequence and has produced a strong contract aureole in the surrounding rocks. During most of the reporting period, project remained under care and maintenance as GBS Gold Australia went into voluntary administration in September 2009. Under the instructions from Several Administrators a technical review, tenement ranking and evaluation was undertaken. During the reporting period, project area was also flown by Heli-VTEMP survey and geochemical sampling was undertaken in the surrounding areas. Processing and interpretation of data along with geological setting show that project area could have significant potential for gold, base metals and uranium mineralisation. In the next reporting period, the project area will undergo ground-truthing, soil/rock sampling, and if warranted, will lead to Air Core or RC drilling program.