Annual exploration report EL 23536 for period ending 28 July 2010 Mt Osborne, Burnside Project

Abstract

EL 23536 is a strategic landholding which is located south of important Brocks Creek project area, and covers several mineral claims and part of MLN 1139. EL 23536 was granted on 29 July 2003 and expires on 28 July 2011. It was granted to GBS Gold Australia's subsidiaries Buffalo Creek Mines Pty Ltd (50%) and Territory Goldfields NL (50%). GBS Gold Australia went into voluntary administration on 15 September 2008 and all assets including EL 23536 were placed under care and maintenance. Crocodile Gold Australia acquired all liquidated assets of GBS Gold Australia (liquidated) on 6 November 2009 and commenced mining and exploration activities in the region. The tenement overlies a sequence of Palaeoproterozoic meta-sediments ranging from South Alligator Group to the Finniss River Group. Much of the area is covered by pre-existing titles (e.g ML 1139) which cover the South Alligator Group sediments, and the area covered by EL 23536 is mainly of the Burrell Creek Formation sediments of the Finniss River Group. In the northern part of the tenement, rocks of the Gerowie Tuff and Mount Bonnie Formation are also present. The sequence has been intruded by the Burnside Granite, a fractionated and oxidised body that is known to have been associated with gold mineralisation in the Pine Creek Orogen. During the year under review, EL 23536 was explored for uranium and gold mineralisation. In addition, new owner commenced a review of the project area in order to establish mineral potential of the project area. High resolution magnetic and radiometric data obtained were processed and interpreted, which provided significant encouragement for further exploration. In addition, 113 soil samples were taken on 50 m x 50 m grid. During 2010-11, exploration will continue to target the project area for uranium, gold and base metals. This will involve data interpretation, detail mapping of selected areas and additional drilling. A special emphasis will be placed on Lady Josephine prospect for extension of further uranium mineralisation.