Annual exploration report EL 24151 for period ending 1 August 2010

Abstract

EL 24151 is an important tenement within Crocodile Gold Australia's port folio, which is located about 75km SE of Darwin, Northern Territory. Toms Gully Mine and processing facility is about 20 kilometers south-east of the project area. The tenement was granted initially to Renison Consolidated Mines NL and was acquired by GBS Gold Australia Pty Ltd in 2007. GBS Gold Australia went into voluntary administration on 15 September 2008, and all assets including EL 24251 were acquired by Crocodile gold Australia on 6 November 2009. The Project area is located within the central northern portion of the Proterozoic Pine Creek Orogen. The Palaeoproterozoic rocks of the region include Mount Partridge Group - the Wildman Siltstone which is unconformably overlain by South Alligator Group, which comprises the Koolpin Formation, Gerowie Tuff and Mount Bonnie Formation. The Finniss River Group - Burrell Creek Formation, lies conformably over the South Alligator Group. These meta-sediments are strongly folded along a NNE trending anticlinal and synclinal axis. During some part of the reporting year, the tenement was under care and maintenance and on 6 November 2009, it was acquired by Crocodile Gold Australia. New owner commenced in-depth technical review of the project area which identified significant potential of the tenement for gold, uranium and base metals. Processing and interpretation of the high resolution geophysical further support the mineral prospectivity of the project area (Gold, Uranium and Base Metals). In the following year, full potential of EL 24151 will be tested. Selected areas will be mapped and geochemical sampling campaign will be conducted in 2010-11. A ground radiometric survey will also be carried out. High priority targets will undergo Aircore/RC drilling.