Annual exploration report on EL 23178 AuQuest Project Area, year ending 7 March 2010

Abstract

EL 23178 is located some 70 kilometers south-east of Darwin. It was granted on 8th March 2005 to Renison Consolidate Mines. The tenement consists of 59 graticular blocks (184.6km2). On 25 July 2007, by virtue of an agreement, GBS Gold Australia Pty Ltd acquired all mining and exploration assets, located in the Toms Gully Region. GBS Gold Australia went into voluntary administration on 15 September 2008, and all assets including EL 23178 were placed under care and maintenance. In June 2009, Crocodile Gold Australia announced to purchase all assets held by GBS Gold Australia. After meeting all regulatory and statuary requirements, these assets including EL 23178 were transferred to Crocodile Gold Australia. The south western portion of EL 23178 contains the oldest sediments of the Mount Partridge Group that is unconformably overlain by the South Alligator Group, which covers small portions in the northern and southern parts of the tenement area. Much of the project area is comprised of Burrell Creek Formation, which conformably overlies the South Alligator Group. During most of the reporting period, EL 23178 remained under care and maintenance because previous owner, GBS Gold Australia went into voluntary administration. During the reporting period, a technical review, tenement ranking and evaluation was undertaken in order to prepare assets for sale. Crocodile Gold Australia regards the tenement highly and intends to explore the project area with a dedicated exploration program. Most of the tenement is under moderate to thick recent alluvial cover, which hampers access to bed rock geology. It is recommended that a campaign of Air Core/RC drilling campaign should be undertaken to test the anomalous areas. Soil and rock chip sampling program should target the areas which have been subjected to crustal disturbances. If encouraging results received, then a campaign of deep drilling should be undertaken to test the full potential of EL 23178.