Annual exploration report on EL 23540 Saunders Creek, for period ending 16 February 2010

Abstract

EL 23540 is located about 145 km NE of Darwin in the immediate vicinity of Iron Blow gold and base metals deposits. EL 23540 was granted on 17 February 2003 and will expire on 16 February 2011. It comprises five blocks that cover approximately 16.1 km2. The tenement forms part of the eastern boundary of tenement holdings comprising the Burnside Joint Venture, which was owned by GBS Gold Australia (liquidated). Crocodile Gold Australia purchased all assets held by GBS Gold Australia (liquidated), including EL 23540 and took over the control on 6 November 2009. The EL is dominated by the rocks of the Koolpin Formation along with Gerowie Tuff and intruded by dykes of the Zamu Dolerite. Towards east, the stratigraphic horizon is intruded by the Prices Springs Granite. Strata are tightly folded on NNW striking axes during the Barramundi Orogeny. The folds plunge shallowly to the NNW and locally in the centre of the tenement, and have undergone strike faulting perhaps as a result of axial failure. 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. During the review, significant magnetic anomalies were identified within the project area. These anomalies have the potential to host gold and base metal mineralisation in the Pine Creek Orogen. In addition, reconnaissance visits were also undertaken. Crocodile Gold Australia regards the tenement highly due to its gold and base metal potential. For 2010-11 reporting period, proposed exploration program includes in-filling soil/rock chips samplings to determine the full potential of the area along with geological mapping. This will lead to RC drilling to check geophysical anomalies.