Annual report on SEL 23200 Year ended 6 February 2010

Abstract

SEL 23200 is located about 100 km east of Darwin and approximately 17 km SSE of the Toms Gully gold mine. SEL was granted to Northern Gold NL on 3 February 2004 for a period of 4 years and it covers 4 blocks. Crocodile Gold Australia recently acquired the project area which was explored and managed by Rustler's Roost Mining Pty Ltd under a farm-in agreement with Northern Gold Australia NL. GBS Gold Australia, parent company of Northern Gold, went into voluntary administration on 15 September 2008. On 6 November 2009, Crocodile Gold Australia purchased all assets (liquidated) held by GBS Gold Australia and its subsidiaries including SEL 23200. SEL 23200 is located within central domain of the Palaeoproterozoic PCO in the Top End of the Northern Territory. The tenement geology is predominantly comprises deformed rocks of the Finnish River Group and South Alligator Group. They are composed of iron rich rocks of the Koolpin Formation, the Gerowie Tuff, Mount Bonnie Formation and Burrell Creek Formation. To the north of the tenement, the Mount Bundy Igneous Suite, comprising the magnetic Mount Goyder Syenite and the pinkish-brown Mount Bundy Granite, intruded the formations in the project area. During the reporting period, project area was flown by high resolution geophysical survey. The project area was also flown by high resolution geophysical survey under a farm-in agreement with Rum Jungle Uranium Australia in 2009. GDF formatted data have already been provided to Geoscience Information. Preliminary interpretation of data suggests that project area has significant magnetic anomalies which can be good target for gold exploration. A review of the project area suggests that it has a fertile geological setting for hosting a variety of mineralisation. Deformed Palaeoproterozoic lithological units intruded by late granite are known to contain gold mineralisation in the central part of the PCO. A number of previous exploration programs support this contention in which a number of gold and base metals anomalous areas have been outlined. After securing the control of the tenement, Crocodile Gold Australia has commenced the appraisal of SEL 23200. Processing and interpretation of exploration and geophysical data has provided significant encouragement to explore the project area. In 2010-11, a program of geological mapping of selected areas will be undertaken which will be followed by soil/rock chip sampling program. If encouraging results received, then project area will be drill-tested. The area will be targeted by RC/RAB drilling. Samples retrieved during drilling will be assayed.