Annual report MLN 1059 Moline for period ending 15 August 2010

Abstract

MLN 1059 is a strategic project which Crocodile Gold Australia acquired in 2009. It is located about 240 km SE of Darwin and comprises Moline Gold Field (e.g. Hercules, School, Moline and Tumbling Dice). The tenement encompasses a suite of meta-sedimentary rocks which belong to the Burrell Creek and Mt Bonnie Formations. Locally these rocks are isoclinally folded with fold axes plunging at shallow angles to the south east. Mineralisation is found in zones of pyrite, quartz, and brecciated country rock with minor veinlets of sphalerite, tetrahedrite, arsenopyrite, chalcopyrite and carbonates. During the period under review, previous GBS Gold Australia went into voluntary receivership on 15 September 2008, and all exploration and mining projects were placed under 'Care and Maintenance'. In June 2009, Crocodile Gold Australia announced to purchase liquidated assets held by GBS Gold Australia. After meeting regulatory and statuary requirements, these assets were transferred to Crocodile Gold Australia. Crocodile Gold Australia commenced a due diligence study of the project which ranked it highly. It is a strategic asset which contains a significant resource of gold mineralisation. Other activities during the reporting period are reconnaissance visit, technical review of the tenement, planning for up-coming field season and report writing and tenement management activities. The Moline project will remain under review and on availability of financial resources, a campaign of in-fill soil sampling will be carried out, and if new targets are identified that will lead to RC drilling.