Annual exploration report on EL 9608 Mount Bonnie South Year ending 24 May 2010

Abstract

EL 9608 is a strategic landholding which is located about 145 km SE of Darwin, NT and 18 km SE of Brocks Creek. EL 9608 was granted on 25 May 2004 and expires on 24 May 2010. A renewal application has been lodged with the NT Dept of Resources. It comprises three blocks that cover approximately 10 km2. Originally, EL 9608 was granted to Northern Gold NL, which in 2005 became the subsidiary of GBS Gold Australia Pty Ltd. On 15 September 2008, GBS Gold Australia went into voluntary administration and in the following year, all assets were purchased by Crocodile Gold Australia on 6 November 2009. EL 9608 covers the Koolpin Formation meta-sediments that have been tightly folded and faulted on NW-SE axes. The Koolpin Formation has been intruded and dilated regionally by dolerite sills with a wide range of thicknesses. Cross-folding has generated a domal structure in the southern most block of the tenement. This feature is a clone of the mineralised Golden Dyke Dome 4 km to the west. The area is well exposed on strike ridges with scree deposits and alluvial cover in the valley floors and flanks of the ridges. During most the year under review, tenement remained under care and maintenance. Under the instructions from Several Administrators, EL 9608 was reviewed, ranked and valuated. Review of previous geochemical and drilling data indicates that the EL 9608 has significant potential for gold, uranium and base metal metals mineralisation, which new owner will pursue aggressively. During the reporting, high resolution geophysical survey (magnetic and radiometric) of EL 9608 was flown. Interpretation of geophysical data supports the mineral potential for gold, uranium and base metal mineralisation. Other exploration activities were reconnaissance visits of the area, data compilation, tenement management and annual exploration report preparation. Proposed exploration program for the next reporting year will involve field checking zones of previous anomalous geochemistry and geological significance and interpreting the geophysical and structural aspects of the tenement, and defining further drill targets. This will lead to RC/RAB drilling in the project area to fully test the geochemical and geophysical targets.