Annual exploration report EL 10347 for period ending 14 April 2010 Golden Dyke Dome, Burnside Project

Abstract

EL 10347 is one of the significant tenements located 145km SE of Darwin, and is centered on the Golden Dyke Dome, a faulted anticlinal feature at the southern end of the historic Yam Creek-Golden Dyke gold-mineralised belt. Several historic gold mines occur within the tenement including Golden Dyke, Davies No 2, Fishers Adit, Afghans Gully and Langley's. Gold mineralisation in the tenement is associated with the middle Koolpin Formation of the South Alligator Group. Prospects lie along an arcuate fold axis trend, (Good Shepherd Anticline) which is parasitic to the west limb of the Dome. The gold closely follows stratigraphy and the bulk of mineralisation is confined to the contact zone between the Koolpin Formation and the Zamu Dolerite. It is hosted mainly by dark, nodular, cherty, chloritic and magnetic iron formation horizons thought to correlate with the same strata at the Cosmopolitan Howley Mine 16km to the west. During most of the reporting period, EL 10347 and other assets remained under care and maintenance. Under the instructions of Several Administrators, the tenement and other assets were reviewed, ranked and evaluated in order to prepare assets for sale. Crocodile Gold Australia purchased assets held by GBS Gold Australia (liquidated) in June 2009, and after meeting regulatory and statuary requires these assets including EL 10347 were transferred to Crocodile Gold Australia on 6 November 2009. New Owner commenced exploration, mining and processing activities immediately in the region. JV partner, Thundelarra Exploration Limited, flew a high resolution geophysical survey covering part of the project area. In 20010-11 reporting year, the project area will be explored for gold and base metal mineralisation. For this purpose, areas identified during this review will undergo soil/rock chip sampling along with geological mapping. In addition, geophysical data will be processed and interpreted which will help to identify new targets. If encouraging results received, then RAB/RC drilling may also take place.