Annual exploration report ML 23617 Bons Rush year ending 14 June 2010

Abstract

ML 23617 (not MLN as given in report) is a strategic landholding because it contains significant gold resource at Bons Rush. It is located approximately 150 km SSE of Darwin and about 22 km NW of Brocks Creek (Zapopan) mine. ML 23617 was granted to Northern Gold Pty Ltd, a subsidiary of GBS Gold Australia, on 15 June 2006 and expires on 14 June 2031. Crocodile Gold Australia purchased the tenement and other assets held by GBS Gold Australia (liquidated) on 6 November 2009. MLN 23617 underlies rocks of the South Alligator Group which comprises the Koolpin Formation, Gerowie Tuff and Mount Bonnie Formation. The sequence occurs as north-trending tongue which is surrounded by the Burrell Creek Formation. In the project area, the sequence has been folded into south-plunging anticlinal structure (F3) here western limb has been effected by a NW-trending fault. The Zamu dolerite occupies hinge of the fold and appears to have been interlayered within the Koolpin Formation and Gerowie Tuff - an artifact of deformation. Bons Rush is associated with quartz-carbonate veins that dip shallowly (~25-30) to the northeast. The mineralised zone is hosted by a carbonated, sulphidised, sericitised and occasionally silicified granophyric phase of the Zamu Dolerite. During some of the reporting period, the tenement remained under care and maintenance. After securing the tenement, Crocodile Gold Australia commenced in-depth technical review, tenement ranking and evaluation. Technical review identified the strategic significance of the tenement due to the presence of significant gold which can increase substantially with further exploration. Crocodile Gold Australia regards ML 23617 highly because it contains an important Bons Rush gold prospect, and has the potential to produce substantial quantities of ore to feed the gold mill located at Union Reefs. In 2010-11 reporting year, project area will be explored for gold, uranium and base metals mineralisation. For this purpose, area 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.