Annual exploration report EL 10367 AuQuest Project year ending 21 October 2010

Abstract

EL 10367 is an important tenement within Crocodile Gold Australia's portfolio which is located about 90 km SE of Darwin, and approximately 2 km south of the Rustlers Roost Mine along the Arnhem Highway. EL 10367 was originally applied for by Renison Consolidated Mines NL on the 22 October 2003 as part of a group of tenements (AuQuest Project) that have a northwest trend of mineralisation known as Noonamah-Corroboree trend. On 6 November 2009, Crocodile Gold Australia acquired EL 10367 after purchasing all assets held by GBS Gold Australia (liquated). The licence area encompasses a suite of meta-sedimentary rocks belonging to the Mt Bonnie Formation and the Burrell Creek Formation. These comprise brown to grey-green, thickly bedded to massive, fine to coarse feldspathic meta-greywacke with graded bedding in places and minor lenses of volcanilithic pebble conglomerate; brown to grey, laminated phyllite, slate and mudstone; minor quartz-mica schist. During the year under review, new owner acquired the control of the tenement and commenced a thorough review of the project area. EL 10367 is situated in a close proximity of Rustlers Roost and Toms Gully gold mines and has similar geological setting which points towards mineral potential of the project area. However, much attention remained focused in bringing on-line mining and processing activities with a multi-million dollars budget. Other activities included reconnaissance visits, tenement administration and report writing. In the next reporting year, ground-truthing of anomalies will be undertaken. If encouraging results received, then a program of soil/rock chip sampling will be undertaken. It is also possible that some anomalies will be drill-tested.