Annual report on SEL 25348 year ended 21 February 2010

Abstract

SEL 25348 is located about 90 km east of Darwin and approximately 4.5 km SW of the Toms Gully gold mine. SEL was granted to Northern Gold NL on 22 February 2004 for a period of 4 years and it covers 24 blocks. The tenement has been renewed until 21 February 2011. 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, and Crocodile Gold Australia purchased all assets including SEL 25348 in November 2009. SEL 25348 is located within central domain of the Palaeoproterozoic Pine Creek Orogen in the Top End of the Northern Territory. The tenement geology is predominantly comprises deformed rocks of the South Alligator Group and Finniss river Group. They are composed of iron rich rocks of the Koolpin Formation, Gerowie Tuff, Mount Bonnie Formation and Burrell Creek Formation. To the north-east 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 year under review, the project area was flown by high resolution geophysical survey. Preliminary interpretation of data suggests that SEL 25348 has significant magnetic anomalies which appear to be good target for gold and base metals exploration. A number of previous exploration programs support this contention in which a number of gold and base metals anomalous areas have been outlined. A number of radiometric anomalies have also been identified which show good potential for uranium mineralisation. After securing the control of the tenement, Crocodile Gold Australia has commenced the appraisal of SEL 23548. 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.