Annual report on EL 23173 AuQuest Project Area period beginning 4 March 2009 to period ending 3 March 2010

Abstract

Crocodile Gold Australia Pty Ltd acquired EL 23173 in November 2009, after purchasing all assets held by GBS Gold Australia Pty Ltd (liquidated) in the Northern Territory. The tenement is located about 90 km east of Darwin and is an important asset within Crocodile Gold Australia's port folio. It was granted to Renison Consolidated Mines Limited on 4 March 2003 for a period of six years. It comprises 6 blocks and covers 11 km2. The tenement was renewed for another two years on 8 January 2009 and now will expire on 3 March 2011. Underlying cadastre is held by B.F Coulter PPL 1163. EL 23173 is located in the Pine Creek Orogen, where northern part of the project area contains the oldest sediments such as the Mount Partridge Group. It is unconformably overlain by the South Alligator Group, which comprises the Koolpin Formation, Mt Bonnie Formation and Gerowie Tuff. The southern portion of the project area is comprised of the Burrell Creek Formation, which conformably overlies the South Alligator Group. Tertiary and Quaternary Soils and Gravel's unconformably overlie all the lower lying portions of the tenement areas, generally referred to as Black Soils Regions. In the year under review, previous owner GBs Gold Australia remained under voluntary administration and as result of that EL 23173 was under care and maintenance. During the period, a detailed review of the tenement was undertaken which also involved tenement ranking and evaluation in order to prepare asset for sale. In 2010-11, detailed geological mapping will be undertaken to ascertain structural complexities. This will be complemented with rock chip/soil sampling program to define geochemical anomalies better. Previous drilling has provided encouraging results and it will be followed up with additional RC/RAB drilling. Sample retrieved during this program will be assayed for gold, uranium and base metals.