Annual exploration report EL 24018 Hayes Creek East year ending 9 August 2010

Abstract

EL 24018 is a significant tenement within Crocodile Gold's portfolio and is located about 140 km SE of Darwin, Northern Territory. It was granted on 10 August 2004 and expires on 9 August 2010. A renewal application for another two years period has been lodged with the NT Dept of Resources. The tenement comprises seven sub-blocks that cover approximately 2,331 hectares (23.37km2). The EL was granted to subsidiaries of GBS Gold Australia (Territory Goldfields NL and Buffalo Creek Mines NL in equal shares). GBS Gold Australia went into voluntary administration on 15 September 2008. Crocodile Gold Australia acquired EL 24018 and other assets held by GBS Gold Australia (liquidated) on 6 November 2009. The tenement largely covers a tract of the McMinns Bluff Granite that has been unconformably overlain by Mesoproterozoic Tolmer Group sandstone, conglomeratic sandstone and subordinate dolomite. The more resistant Tolmer Group has formed an arcuate escarpment that faces north on the south side of the valley. Cretaceous sandstone overlie the granite to the east. To the north, rocks of the South Alligator and Finniss River groups are also present. An important feature is the presence of Hayes Creek Fault which transacts the area from NE to SW. During the reporting period, project area was explored for uranium and gold mineralisation. High resolution geophysical survey part of the tenement (313 line km) was undertaken. Radiometric anomaly was tested with 2 RC drill holes for a total of 254 m. 18 composite samples were analysed for a variety of elements. A rock chip sample was collected from radiometric anomaly which assayed 650 ppm uranium. Crocodile Gold Australia after taking control of the tenement, commenced review, tenement ranking and evaluation which identified further potential for gold and base metal mineralisation. EL 24018 has shown some potential for gold, uranium and base metals mineralisation. To explore the potential of the project area further, a program of geological mapping, geochemical sampling and possible Aircore/RAB drilling will be undertaken to fully assess the mineral potential of the area. Geophysical survey comprised of 313 line km in EL 24018 and data have already been submitted to Dept of Resources as part of annual report on EL 23431.