Annual report on MCN 3333 to MCN 3339 inclusive, year ending 31 December 2009 Toms Gully

Abstract

MCN 3333, MCN 3334, MCN 3335, MCN 3336, MCN 3337, MCN 3338 and MCN 3339 form a group of tenements that surrounds the MLN 1058 which contains Toms Gully Mine, and encompass at least one prospect - the William Prospect. These MCNs were acquired by GBS Gold Australia Pty Ltd (liquidated) in July 2007 from Renison Consolidated Mines NL and Toms Gully Holdings Pty Ltd. GBS Gold Australia went into voluntary administration and Crocodile Gold Australia after purchasing all assets held by the former took over the control on 6 November 2009. The Project area is located within the northern portion of the Pine Creek Orogen. MCN 3333, MCN 3334, MCN 3335 and MCN 3336 mainly lie within the Wildman Siltstone, a sequence of tightly folded strata with an unconformable contact between the Wildman Siltstone and the Koolpin Formation. A small portion of the Koolpin Formation is also covered by the tenements. Towards south-east, Mount Bundy Granite intrudes the orogenic sequence. On 15 September 2008, previous owner, GBS Gold Australia went into voluntary administration, and as result of that mining and other exploration activities ceased at the adjacent Toms gully mine. Immediately after that project area was placed under care and maintenance. Under the instructions of several administrators, the main activity has been to prepare assets for sale. For this purpose, a technical review, tenement ranking and valuation was undertaken. In addition, reconnaissance visits were also undertaken. This exercise established the potential of the project area and indicated possibility of additional resources present within the project or its suitability for establishment of mining related infrastructure. Crocodile Gold Australia regards the group of tenements highly and their strategic significance is highlighted due to its presence in the immediate vicinity of Toms Gully Gold mine. As a result, the project area will undergo ground-truthing, soil/rock sampling, and if warranted, will lead to Air Core or RC drilling program.