Annual exploration report MCN 4267 for period ending 11 May 2010 Davies, Burnside Project

Abstract

MCN 4267 is an important tenement within Crocodile Gold Australias portfolio and is situated about 150 km southeast of Darwin, and 500 m north of the Golden Dyke Open Pit. Crocodile Gold Australia acquired the tenement and other assets after purchasing assets held by previous owner, GBS Gold Australia who went into voluntary administration on 15 September 2008. In the project area, gold mineralisation (Davies No. 1) is hosted by the Koolpin Formation and outlined by RC and diamond drilling. It has a 60 m strike length, averages 2m in width and is estimated at 49,000t at 2.58g Au/t. The deposit comprised of quartz vein system which is concordant and tabular. It is hosted by sulphidised carbonaceous shale that dips steeply west. During the period under review, previous owner, GBS Gold Australia remained under Care and Maintenance. In June 2009, Crocodile Gold Australia Pty Ltd announced to acquire GBS Gold Australia's assets in the Northern Territory. After meeting all statuary and regulatory requirements, these assets were transferred to new owner on 6 November 2009. Since then Crocodile Gold Australia commenced review of all assets. After ranking exercise, the company commenced mining and exploration activities in the Pine Creek area. MCN 4267 contains a strategic resource which will provide additional feed stock to the Union Reefs mill. There is a strong possibility that with further exploration, current resource might increase substantially. In the year 2010-11, the tenement will be ranked and, if possible a campaign of sampling and drilling will be carried out.