Annual exploration report SEL 10341 Pioneer, Union Reefs Project year ending 29 September 2009

Abstract

SEL 10341 is a strategic asset which is located 165 km SE of Darwin, Northern Territory. The tenement is held by Buffalo Creek Mines Pty Ltd (50%) and Territory Gold fields Pty Ltd, which are the subsidiaries of GBS Gold Australia Pty Ltd. Currently, it covers 64.02 km2. Recently, Crocodile Gold Australia Pty Ltd acquired all assets held by GBS Gold Australia (liquidated) including SEL 10341. The SEL covers mainly the Burrell Creek Formation with dominant lithologies of greywacke, siltstone and mudstone. Towards north-west, minor rocks of the Mount Bonnie Formation (South Alligator Group) are also exposed. These lithologies have been intruded and thermally metamorphosed by the Tabletop, Allamber Springs and McKinlay Granites. There are a number of gold deposits/prospects around the SEL 10341 and within the project area, which are covered by Elizabeth group of tenements. There is a close association of these deposits with the lithologies of the Finnish River Group and South Alligator Group, intruded by the Palaeoproterozoic granites in the surrounding area. On September 2008, GBS Gold Australia was placed under voluntary receivership and all assets were placed on care and maintenance. During the reporting period, exploration activity was limited to tenement evaluation, review and ranking in order to prepare company assets for sale. In April 2009, Crocodile Gold Australia announced to acquire all assets held by GBS Gold Australia (liquidated) and currently arrangements are underway to register these assets against new owner. Other activities are reconnaissance visits, tenement administration and report writing. SEL 10341 is considered to be strategic in Crocodile Gold Australia's portfolio due to its close proximity to the Union Reef gold mill, and will play an important part in the revival of the company. In 2009-10 reporting year, previously collected data will be assessed and further targets will be selected for geochemical sampling and drilling.