Annual report on EL 10382 AuQuest Project period ending 22 October 2009

Abstract

EL 10382 is located about 80 SE of Darwin in a close proximity to the Toms Gully Gold mine. The tenement was granted to Renison Consolidated Mines NL on 23 October 2003 and will expire on 22 October 2009. It comprises 49 blocks covering 124 km2. The tenement was acquired by Crocodile Gold Australia on 6 November 2009 along other assets in the Northern Territory after voluntary administration/liquidation of previous owner GBS Gold Australia. The Northern portions of the project area contain the oldest sediments of the Wildman Siltstone which belong to the Mt Partridge Group. Here, the Mount Partridge Group that is unconformably overlain by the South Alligator Group (Mt Bonnie Formation Koolpin Formation and Gerowie Tuff), and comprises most of the tenement areas. The southern portion of the Project area is comprised of the Burrell Creek Formation, which conformably overlies the South Alligator Group. Tertiary and Quaternary soils and gravel's unconformably overlie all the lower lying portions of the tenement areas, generally referred to as 'Black Soils Regions'. During the reporting year, a campaign of high resolution geophysical survey, RC drilling and assaying was undertaken. A total of 33 RC holes were drilled for 4162 metres which led to identification of low grade uranium, copper, cobalt and nickel mineralisation. The prospect seems to be of a similar style to Rum Jungle and South Alligator Valley type poly-metallic deposits which include uranium. Best results from the uranium-copper zone include 1m at 1769 ppm U308 and 3.87% Cu within an interval of 5m at 570 ppm U308 and 1.12% Cu in drill hole MBRC010. A larger low grade intersection of 26m at 339 ppm U308 and 2557 ppm Cu in hole MBRC018 was drilled including 5m at 597 ppm U308 and 4780 ppm Cu. Best results from the copper-nickel-cobalt zone include 42m at 1740 ppm Cu, 320 ppm Co and 846 ppm Ni in MBRC032, 20m at 2135 Cu, 407 ppm Co and 626 ppm Ni in MBRC013 and 32m at 1287 ppm Cu, 162 ppm Co and 331 ppm Ni in MBRC 011. In the next reporting year, another campaign of RAB/RC will be conducted for gold, uranium and base metal mineralisation.