Annual exploration report Howley Ridge Tenement Group MCN's 377-380; 852-857; 1035; 3099 - 3115; 3117 year ending 31 March 2010

Abstract

Strategic landholding covered by Howley Ridge Group of tenements (MCNs 377-380) is located about 130 km south of Darwin, and some 10 km NW of the Cosmo Deep gold mine within the Pine Creek Orogen. In 2005, GBS made a successful takeover of Northern Gold, and entered an agreement to purchase Harmony's 50% share of the Burnside JV, giving GBS 100% of the project. However, GBS Gold Australia went into voluntary administration and Crocodile Gold Australia purchased all assets located in the Northern Territory. After meeting regulatory and statuary requirements, these were transferred to Crocodile Gold Australia on 6 November 2009. The group occupies a segment Howley Anticline axis where rocks of the Mount Bonnie Formation, Gerowie Tuff and Burrell Creek Formation are exposed. The Zamu Dolerite is interlayered within the formations. The sequence has been folded into a macroscopic asymmetric anticline with parasitic flanking folds and thrust faults. This arcuate structure is termed the Howley Anticline and has been traced along strike for 30 km between the Cosmo Howley Mine and Mt Paqualin. The fold plunges shallowly to the NW in the vicinity of the Cosmo Howley. During most of the reporting period, Howley Ridge project remained under care and maintenance. Under the instructions of Several Administrators, project area was reviewed, ranked and evaluated in order to prepare the asset for sale. Review of the data shows that Howley Ridge has some high grades, but appears to lack continuity. Crocodile Gold Australia regards the Howley Group highly due to its strategic location in the north of current development area, which covers Chinese South Extension, Mottram and Cosmo Deeps gold mines. It is anticipated that next phase of exploration and resource definition will include a dedicated program for the Howley Ridge project. A program of RC drilling has already been designed to test northerly extension of Howley Anticline. In addition, some soil and rock chip sampling program may also be taken to assess the full potential of the area.