Annual exploration report on MLN 281 to MLN 284 incl, MLN 337 to MLN 339 incl, MLN 369, MLN 370, MLN 372 and MLN 373 AuQuest Project Area Year ending 31 December 2009

Abstract

The Tenement Group (MLN 281, MLN 282, MLN 283, MLN 284, MLN 337, MLN 338, MLN 339, MLN 369, MLN 370, MLN 372 and MLN 373) is located some 110 kilometers south-east of Darwin. These tenements were granted from 1973 to 1976 respectively. On 25 July 2007, by virtue of an agreement, GBS Gold Australia Pty Ltd acquired all mining and exploration assets, located in the Toms Gully Region, including tenement group discussed in this report. Crocodile Gold Australia secured the project area along with other tenements after GBS Gold Australia went into voluntary administration. Most of the project tenements fall in an area covered by the Koolpin Formation and surrounded by Gerowie Tuff. The Mount Bundy Granite intrudes the rock formation towards north. Within the project area, Quest 30 gold prospect is located which contains significant auriferous quartz vein system. During most of the reporting period, the project area remained under voluntary administration. Under the instructions of Several Administrator, a technical review, tenement ranking and evaluation was undertaken in order to prepare assets for sale. JV partner, Rum Jungle uranium conducted Heli-VTEMP survey and rock chip sampling program. Crocodile Gold regards the project area highly which will play an important role in sustained mining and processing operation in the near future. It is proposed that magnetic anomalies identified should be thoroughly checked, and project area should be mapped in detail. It should follow soil/rock sampling, and if warranted, then lead to Air Core or RC drilling program.