Annual exploration report EL 22232 Au Quest Project year ending September 2010

Abstract

EL 22232 is a strategic landholding which is situated about 80 km SE of Darwin and 10 km NW of the Toms Gully Mine along the Arnhem Highway. The tenement was granted to Renison Consolidated Mines NL on 3 September 2003 and expires on 2 September 2009. GBS Gold Australia Pty Ltd acquired the tenement on 25 July2007. However, GBS Gold Australia went into voluntary administration on 15 September 2008, and Crocodile Gold Australia purchased all assets including EL 22232 on 6 November 2009. EL 22232 is located within the Pine Creek Orogen, a tightly folded sequence of Palaeoproterozoic rocks, 10km to 14km in thickness, laid down on a rifted granitic Archaean basement during the interval ~2.2-1.87Ga. The sequence is dominated by pelitic and psammitic (continental shelf shallow marine) sediments with minor inter-layered tuff units. The Cullen intrusive event introduced a suite of fractionated calc-alkaline granitic batholiths into the sequence in the period ~1.85-1.78Ga. After taking the control of EL 22232, Crocodile Gold Australia embarked on the review of the project area. TMI image of the project area shows a north-west trending magnetic trend within EL 22232, which probably represent a sliver of the South Alligator Group (Koolpin Formation, Gerowie Tuff and Mt Bonnie Formation). This lithological assemblage is an important host for gold mineralisation in the Pine Creek Orogen and their presence in the vicinity of Mt Bundy Granite further highlights their potential for gold mineralisation. Radiometric data revealed some anomalous areas in the eastern part of the tenement. However, much of the project area is covered by recent alluvial cover which probably hampers any radiometric response from bed rock. Crocodile Gold Australia plans to explore the area with a dedicated exploration program, which will involve geochemical soil/rock chip sampling program, followed by a campaign of RC/RAB drilling. Samples retrieved during drilling will be assayed for gold and base metals and rocks will be assessed for uranium mineralisation.