Annual exploration report EL 23431 Mt Bonnie West Year ending 19 December 2009

Abstract

EL 23431 is one of the significant tenements within Crocodile Gold Australia portfolio which is located about 140km SE of Darwin, NT and 14 km SE of Brocks Creek. It was part of the Burnside Joint Venture, managed by Burnside Operations P/L comprising Territory Goldfields NL and Buffalo Creek Mines NL. The latter were subsidiaries of Northern Gold NL which was subsequently taken over by GBS Gold Australia Pty Ltd. On 15 September 2008, GBS Gold Australia went into voluntary administration and all assets held by the company were liquidated. Crocodile Gold Australia purchased all assets including EL 23431 on 9 November 2009 and commenced mining and exploration activities in the region. The tenement comprises a suite of meta-sedimentary rocks belonging to the Palaeoproterozoic South Alligator Group. The Group is part of the Pine Creek Orogen sequence and is contiguous with the base metal and gold mineralised localities of Mt Bonnie and Golden Dyke. The Hayes Creek Fault strikes north east through the centre of the prospect and is important in the localisation of uranium and gold mineralisation. During reporting period, a dedicated exploration program was undertaken to assess the full potential of uranium mineralisation at Thunderball, discovered in previous exploration program. This included geological mapping, drilling and high resolution geophysical survey over the project area. Down hole logging and assaying of drill chip samples confirmed the presence of uranium mineralisation which is confined to carbonaceous siltstone and tuffaceous units of the Mt Bonnie and Gerowie Tuff. Exploration at Thunderball prospect has identified a high grade uranium deposit which requires further exploration and evaluation. In the coming year, exploration activities will include RC/diamond drilling, geological studies, geological modelling and geophysical modelling and interpretation. Three consecutive drilling programs were carried out at Thunderball Prospect on EL 23431. It comprises 12 RC drill holes for 1995 meters and 10 diamond drill holes for 1850 metres.