Annual exploration report Brocks Creek Group year ending 26 June 2010 MLN 1139, MLN 176, MCN 4689-4697, MCN 4701-4703, MCN 4863-4871, MCN 4895-4899

Abstract

The Brocks Creek project comprises a group of mining tenements centered about 140 km south east of Darwin, NT. Brocks Creek has historically been the focus of open pit, underground and alluvial gold mining area and has produced significant quantities of gold along the Brocks Creek-Zapopan (BKZ) structure. Crocodile Gold Australia acquired the project area on 6 November 2009 after purchasing liquidated assets of GBS Gold Australia. The project area comprises a sequence of Palaeoproterozoic meta-sedimentary rocks of the South Alligator Group and Finniss River Group, intruded by the Burnside Granite. This rock sequence has been tightly folded on axes that trend north westerly, and have been subjected to greenschist facies metamorphism. Thermal effects from the late-orogenic Burnside Granite that lies to the north of the group has imparted hornfelsing and porphyroblastic spotting of garnet, biotite and andalusite/cordierite depending on lithology and proximity to the contact. On 15 September 2008, previous owner GBS Gold Australia went into voluntary receivership, and all exploration and mining projects were placed under 'Care and Maintenance' including Brocks Creek gold mine. During the administration period, project area along with other assets were reviewed, ranked and valuated in order to prepare assets for sale. Crocodile Gold Australia secured the assets on 6 November 2009 and commenced drilling program which involved drilling of 9 diamond holes for 2010 metres. 784 drill core samples of 1 metre composite were assayed for gold by AAS. A number of high grade intercepts were delineated. Since the start of mining operation under new management, over 50000 tonnes of high grade gold ore has been produced by Brocks Creek mine by underground method. In 2009-11 reporting year, project area will be explored for gold, uranium and base metals mineralisation. In the coming years, resource drilling campaign will be undertaken to extend the inventory base. In addition, other areas within the Brocks Creek project will be tested with soil/rock sampling and RAB/RC drilling. A minimum budget of $15000.00 has been set aside for this program.