Annual exploration report EL 24051 Margaret River year ending 9 August 2010

Abstract

EL 24051 covers strategic landholding which is located about 140 km SE of Darwin, and 22 km NE of Brocks Creek Mine Office, Northern Territory. It is situated east of Woolwonga gold mine and contains similar stratigraphy which host gold mineralisation at Woolwonga. The tenement was granted on 10 August 2004 and will expire on 10 August 2010. An application to renew the tenement has been lodged with the NT Dept of Resources. Crocodile Gold Australia purchased the tenement and other assets held by GBS Gold Australia (liquidated) on 6 November 2009. Lithologies of the Finniss River Group (Burrell Creek Formation) form the major component of the project area, which are folded and faulted on north-west axial trend in parallel with the Pine Creek Shear Zone, a ductile high strain regional feature that is some 3 km wide. The Shear Zone occupies the south western sector of the exploration licence. Minor rocks of the Mount Bonnie Formation and Gerowie Tuff are also present. Prospectivity of the area is indicated by at least four gold prospects located within the project area. TMI image of the project area shows that prospective geological setting to host gold mineralisation is the characteristic feature of the project area. After securing the control of tenement Crocodile Gold Australia commenced review, tenement ranking and evaluation. Review of the project area shows that it holds significant potential for gold, uranium and base metal mineralisation. In the next reporting year, the project area will be flown by high resolution geophysical survey. A program of geological mapping, geochemical sampling and possible Aircore/RAB drilling will be undertaken to fully assess the mineral potential of the area.