Annual exploration report EL 10367 Au Quest Project year ending 21 October 2009

Abstract

EL 10367 is located about 90 km SE of Darwin and approximately 2 km south of the Rustlers Roost Mine along the Arnhem Highway. EL10367 was originally applied for by Renison Consolidated Mines NL on the 22 October 2003 as part of a group of tenements (AuQuest Project) that have a northwest trend of mineralisation known as Noonamah-Corroboree trend. Crocodile Gold Australia acquired this tenement after purchasing all assets held by GBS Gold Australia (liquidated). The licence area encompasses a suite of meta-sedimentary rocks belonging to the Mt Bonnie Formation and the Burrell Creek Formation. These comprise brown to grey-green, thickly bedded to massive, fine to coarse feldspathic meta-greywacke with graded bedding in places and minor lenses of volcanilithic pebble conglomerate; brown to grey, laminated phyllite, slate and mudstone; minor quartz-mica schist. During the reporting period, GBS Gold Australia remained under voluntary administration. Company administrators were involved in restructuring the company or possible sale. A number of parties expressed interest to acquire all assets held by GBS Gold Australia (liquidated) in the Northern Territory. Eventually Crocodile Gold Australia was the successful company in acquiring these assets. After meeting all regulatory and statutory requirements, all assets including EL 10367 were transferred to Crocodile Gold Australia on 6 November 2009. During the reporting period, main activity was technical review, tenement ranking and valuation in order to prepare all exploration and mining tenement for sale. A number of field visits were undertaken with the interested parties. After acquiring mining and exploration tenements, Crocodile Gold Australia has re-commenced mining and exploration activities in the Northern Territory. EL 10367 is regarded as high value tenement which has significant potential for gold, uranium and base metal mineralisation. In the next reporting year, all previous exploration data will be reviewed and target areas will be selected for further evaluation. If encouraging results received, then a program of soil/rock chip sampling will be undertaken. It is also possible that some anomalies will be drill-tested.