Annual exploration report on EL 25295 Year ending 14 February 2010 Margaret Diggings

Abstract

EL 25295 is a significant tenement within Crocodile Gold Australia's portfolio. It is located in the southern part of the Burnside Project area, approximately 150 km SE of Darwin. The Licence was granted on 15 February 2007 to Buffalo Creek Mines Pty Ltd (50%) and Territory Goldfields Pty Ltd (50%), which were subsidiaries of GBS Gold Australia for a 6 year period; it will expire on 14 February 2013. Crocodile Gold Australia acquired all assets including EL 25295 on 6 November 2009. The EL is situated in the central part of the Pine Creek Orogen. It encompasses eight mineral claims which cover the region known as 'Margaret Diggings' - a small placer gold prospect. Rocks belonging to the Wildman Siltstone, Koolpin Formation, Gerowie Tuff, Zamu Dolerite and McMinns Bluff Granite are present in the project area. The tenement is considered important and prospective in GBS's port folio, as it contains known mineralisation, and areas with prospective lithology, structure, geochemistry and pronounced magnetic anomalies. During the year under review, GBS Gold Australia remained under voluntary administration. The main activity was to prepare assets for sale. For this purpose, a technical review, tenement ranking and valuation was undertaken. In addition, reconnaissance visits were also undertaken. Technical review identified the mineral potential of the project area by identifying significant magnetic anomalies which could host gold and base metal mineralisation in the project area. Proposed program for the next reporting period includes detail geological mapping to unravel structural complexities together with rock chip/soil sampling program to define geochemical anomalies better. On the availability of drilling rig, some RC/RAB drilling could also take place.