Annual exploration report EL 24405 for the period ending 5 May 2010 Yam Creek West, Burnside Project

Abstract

EL 24405 covers a strategic landholding, located about 170 km SE of Darwin in the central part of the Pine Creek Orogen. The region is known for containing world-class gold, uranium and base metal deposits, and has produced these commodities in the past. It is still a significant producer in uranium and gold. The tenement was granted to Buffalo Creek Mines Pty Ltd (50%) and Territory Goldfields NL (50%) which was part of the Burnside JV. In April 2006, GBS Gold Australia Pty Ltd acquired 100% of the Burnside JV. On 15 September 2008 GBS Gold Australia went into voluntary administration and Crocodile Gold Australia purchased all assets held by previous owner in the Northern Territory on 6 November 2009. The tenement lies west of the Princess Louise gold deposit and Iron Blow base metal deposit near Yam Creek. There is poor outcrop within the tenement, but mapping by AGSO and NTGS shows the area being underlain by Burrell Creek Formation of the Finniss River Group. The strike of the Burrell Creek sediments within the tenement is unclear due to lack of outcrop, but may trend to the northeast. TMI imagery shows a strong NW component that may be NW-trending fracture sets that could control mineralisation. During most of the reporting period, the tenement remained under administration. However, under the instructions from Several Administrators, a technical review, tenement ranking and valuation was undertaken. In addition, the area was flown by high resolution geophysical survey. According to this review, the tenement covers the area which appears to be hydrothermal fluid conduits that have been derived from Burnside Granite. Similar type of fluids conduits may have been responsible for gold mineralisation at Fountain Head and newly discovered Tally Ho deposits. In 2010-11 reporting year, project area will be explored for gold, uranium and base metals mineralisation. For this purpose, targets identified during this review will undergo soil/rock chip sampling along with geological mapping. If encouraging results received, some RAB/RC drilling may also take place.