Annual report on EL 10368 Auquest Project period ending 16 June 2010

Abstract

EL 10368 is a strategic landholding which is located about 100 km SE of Darwin. It comprises 8 blocks and covers about 14 km2. EL 10368 was granted to Renison Consolidated Mines NL on 17 June 2002 for a period of six years. It was renewed for another period of two years and now will expire on 16 June 2010. An application for further renewal was lodged with Dept of Resources on 25 March 2010. GBS Gold Australia acquired the tenement in 2007, however, it went into voluntary administration in 2008. All assets were liquidated and were purchased by Crocodile Gold Australia on 6 November 2009. EL 10368 is located within the Pine Creek Orogen, which has been interpreted as an intra-cratonic basin lying on an Archaean basement. It contains a 14 km thick sequence of Palaeoproterozoic sediments, accompanied by lesser volcanics, granitic plutons and dolerite intrusions. The northern portions of the project area contain the oldest sediments of the Mount Partridge Group that is unconformably overlain by the South Alligator Group. The southern portion of the Project area is comprised of the Burrell Creek Formation, which conformably overlies the South Alligator Group. During most of period in year under review, the tenement remained under voluntary administration. Under the instructions from Several Administrators, the tenement was reviewed, ranked and valuated in order to prepare assets for sale. Technical review of the EL 10368 based on available data suggests that the tenement is prospective for gold and uranium mineralisation. Geological setting of the area is ideal for medium size gold deposit, where prospective lithologies of the Koolpin Formation, Mt Bonnie Formation Gerowie Tuff and Burrell Creek Formation which have been intruded by the Mount Bundy Intrusive complex further north. Technical review of the project area has identified gold and uranium potential of the project area. In the next reporting year, ground-truthing of the project area will be undertaken. In areas of black soil cover, air core drilling will be required to retrieve bed rock samples. All soil, rock chip samples will be assayed for gold, uranium and base metal mineralisation. If encouraging results received, it will lead to RC drilling.