Annual exploration report on EL 24715 Mount Masson Project, year ending 28 February 2010

Abstract

EL 24715 is a part of package which was under care and maintenance during most of the reporting period. Crocodile Gold Australia acquired the tenement on 6 November 2009 after purchasing exploration and mining assets held by GBS Gold Australia (liquidated), who went into voluntary administration on 15 September 2009. The project area comprises rocks of the Mundogie Sandstone, a medium to coarse, poorly sorted, feldspathic quartz meta-arenite, the Wildman Sandstone, which is laminated, red-brown and cream colour banded silty carbonaceous phyllite (meta-siltstone). It is also interbedded with sandy ferruginous meta-siltstone, thinly bedded feldspathic quartz meta-arenite, quartzite, litho-feldpspathic meta-greywacke. The western part of the tenement covers tightly folded Gerowie Tuff (siliceous siltstone and phyllite interbedded with pale cherty argillite, black cherty crystal and lapilli tuff) and the Koolpin Formation. It is ferruginised meta-siltstone and phyllite with chert bands, lenses and nodules; graphitic phyllite and slate. This sequence has been intruded by the Minglo Granite. During most of the year under review, EL 24715 remained under care and maintenance. The main exploration activity was confined to tenement review, ranking and evaluation in order to prepare assets for sale. In June 2009, Crocodile Gold Australia announced to purchase all assets held by GBS Gold Australia (liquidated) in the Northern Territory. After meeting all regulatory and statuary requirements, EL 24715 along with other assets were transferred to Crocodile Gold Australia on 6 November 2009. Since then Crocodile Gold Australia has embarked on an ambitious program of exploration, mining and processing. EL 24715 is integral part of the strategic package which will play an important role in sustained mining and processing activity. Review of the project area has shown a significant potential for iron, gold and base metals. In the next reporting, a program of soil/rock chip sampling will be undertaken. Selected areas will be mapped and this will lead to drilling.