Annual exploration report MLN 1109, MLN 833 and AN 398 to 402 Union Reefs Gold Mine Year ending 31 December 2009

Abstract

The Union Reefs Group comprises 7 tenements (MLN 1109, MLN 833, ANs 398-402) and is located about 170 km SE of Darwin, NT and 12 km north of Pine Creek. Union Reefs Gold processing plant and related infrastructure is located within MLN 1109. There are other tenements such as MLN 833 and AN398-402 of small size, which are also included in this project for the purpose of group reporting. On 15 September 2008, GBS Gold Australia went into voluntary administration and all assets including Union Reefs gold processing site was placed under care and maintenance. In 2009, Crocodile Gold Australia purchased all assets held by GBS Gold Australia (liquidated) and secured the ownership of project area on 9 November 2009 after meeting all statuary and regulatory requirements. With the re-commissioning of Union Reef mill in November 2009, Crocodile Gold focused on the treatment of gold ore from Brocks and Chinese South deposits. In addition plans are also underway to re-commence mining at Fountain Head/Tally Ho and North Point/Princess Louise and ore mined from these deposits will be treated at Union Reefs. Geologically, the mining centre is situated within a 300m wide NW-trending structural corridor (Pine Creek Shear Zone). The corridor comprises tightly folded and sheared pelitic to arenitic sediments of the Palaeoproterozoic Burrell Creek Formation and inliers of underlying Mount Bonnie Formation. Two sub parallel lines of historic gold workings comprise the focus for the array of open pits mined in recent years. During most of the reporting period, the project area remained under care and maintenance. Exploration, mining and processing activities commenced again in November 2009, when Crocodile Gold Australia secured the ownership of the mining and exploration assets held by GBS Gold Australia (liquidated). Union Reefs project area is considered to be of strategic significance which will play a major role in the development of company objectives in the near future. An exploration program for year 2010 will include infill soil sampling and re-evaluation of the project area. If any encouraging result received, it will lead to RC/RAB drilling. A minimum budget of $10000.00 is proposed.