Annual report on EL 24682 AuQuest Project for period ending 2 February 2010

Abstract

EL 24682 is a significant tenement within Crocodile Gold Australia's portfolio. It is located about 90 km east of Darwin and 8 km northwest of the Toms Gully Gold Mine. The tenement was granted on 1st February 2006 for a period of 6 years. The tenement comprises 34 blocks and covers 107.5 km2. It is part of the package which Crocodile Gold Australia purchased in November 2009 from GBS Gold Australia (liquidated). EL 24682 is located within the Pine Creek Orogen, which has been interpreted as an intra-cratonic basin lying on an Archaean basement, and containing a 14 km thick sequence of Palaeoproterozoic sediments, accompanied by lesser volcanics, granitic plutons and dolerite intrusions. Predominant rocks exposed in the project area belong to the Wildman Siltstone, Koolpin Formation, Mt Bonnie Formation, Gerowie Tuff and Burrell Creek Formation. Palaeoproterozoic strata have been intruded by the Mount Bundy Granite. During most of the reporting period, GBS Gold Australia remained under voluntary administration. In April 2009, Crocodile Gold Australia announced to acquire all assets held by GBS Gold Australia (liquidated) in the Northern Territory. After meeting statuary and regulatory requirements all assets including EL 24682 were transferred to Crocodile Gold Australia on 6 November 2009, and the company commenced exploration and mining activities in the region immediately. During the year under review, an appraisal, ranking and valuation of EL 24682 was undertaken in order to prepare asset for sale. 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.