Annual exploration report EL 24288 for the period ending 3 April 2010 AuQuest Project Area

Abstract

Crocodile Gold Australia acquired EL 24288 in November 2009, after purchasing all assets held by GBS Gold Australia (liquidated). It is located approximately 100 kilometres south east of Darwin and 15 kilometres south east of the Toms Gully Mine Site, and surrounds the Quest 29 and Quest 30 mining leases. In April 2004, the tenement was granted originally to Renison Consolidated Mines Ltd. On 25 July 2007, by virtue of an agreement, GBS Gold Australia Pty Ltd acquired all mining and exploration assets, including EL 24288, located in the Toms Gully Region. The Project area is located within the central northern portion of the Palaeoproterozoic Pine Creek Orogen. Rocks of the Koolpin Formation, Mount Bonnie Formation, Gerowie Tuff and Burrell Creek Formation are exposed in the project area, which have been intruded by Mount Bundy/Mount Goyder Syenite towards north. In the last thirty years, there has been significant exploration activity in the project area, which led to the discovery of gold mineralisation in a number of localities. The area is considered to be prospective for gold, base metal, uranium and iron mineralisation. During the year under review, the EL went through a technical review, tenement ranking and evaluation in order to prepare the asset for sale. IJV partner conducted a Heli-VTEM electromagnetic survey, geophysical data processing and interpretation. In addition, a total of 49 rock chip samples were taken. These samples were analysed for gold, uranium and base metal elements. Processing and Interpretation of geophysical data identified significant anomalies which appear to have potential for gold, uranium and base metal mineralisation. Assaying of rock chip samples returned significant gold and silver values. In the next reporting period, VTEM data will be analysed to pick out the priority 1 anomalies for follow up in 2010. Magnetic, VTEM and radiometric anomalies will be assessed on the ground for their gold, base metals and uranium potential. High priority anomalies will be tested by RC drilling.