Annual exploration report on EL 24351 for period ending 22 February 2010

Abstract

EL 24351 is a strategic asset which is located approximately 160 km SE of Darwin. It was granted to Buffalo Creek Mines NL (50%) and Territory Goldfields NL (50%) on 23 February 2005 and expires on 22 February 2011, comprising 13 blocks that cover approximately 43.45 km2. Crocodile Gold Australia took over the control of EL 24351 on 6 November 2009 after purchasing all assets held by GBs Gold Australia (liquidated) and its subsidiaries in the Northern Territory. Rocks exposed in the tenement are the Burrell Creek Formation (Finniss River Group), Mount Bonnie Formation (South Alligator Group) and Gerowie Tuff (South Alligator Group). These are intruded by the Burnside Granite toward south and Margaret Granite toward north and north-west. Zamu Dolerite intrudes mainly in the centre of the tenement. These meta-sedimentary rocks are host to many gold deposits in the area. GBS Gold Australia remained under voluntary administration during most of the 2009-10 reporting period. 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 mineral potential of the tenement for gold and uranium. After meeting regulatory and statutory requirements Crocodile Gold Australia acquired all assets including EL 23540 held by GBS Gold Australia (liquidated) on 6 November 2009. Following this transaction, Crocodile Gold Australia embarked on an ambitious exploration and mining programs in the area. Gold mining and processing re-commenced and first gold pour was achieved on 29 December 2009. Review of the tenement has established gold, uranium and base metal potential of the project area. Crocodile Gold Australia plans to explore the tenement by a dedicated program in 2010-11. During the next reporting period, detailed geological mapping will be undertaken to ascertain structural complexities. This will be complemented with rock chip/soil sampling program to define geochemical anomalies better. On the availability of drilling rig, some RC/RAB drilling may also take place.