Annual exploration report on SEL 25748 Burnside Year ending 30 September 2010

Abstract

SEL (Substitute Exploration Licence) 25748 covers strategic land-holding which is located in the central part of the Burnside project area. It replaced SEL 24352 and vacant ground covered by expired EL 9080. SEL contains extension to known gold mineralisation and also hosts significant number of uranium prospects. In the project area, gold deposits are hosted by the Brocks Creek-Zapopan shear zone, the Hayes Creek Fault system, and the Pine Creek Shear Zone. The project area contains rocks of the Burrell Creek Formation, Koolpin Formation, Gerowie Tuff, Mount Bonnie Formation and Zamu Dolerite. This package is intruded by the Palaeoproterozoic Burnside and Margret Granites. Previous owner, GBS Gold Australia was declared under receivership on 15 September 2008, and as a result of that all exploration and mining projects were placed under Care and Maintenance. After taking the control of SEL 25748, Crocodile Gold Australia commenced due diligence of the project area. Appraisal of previous exploration data and technical review of SEL 25748 ranked it very highly for having significant potential for gold, uranium and base metal mineralisation. In 2008-09, TEMPEST survey of the project area was flown by JV partner Thundelarra Exploration Pty Ltd in partnership with Geoscience Australia. It was expected that data will be processed and interpreted during the year under review. However due to other commitments of consultant geophysicist, the outcome of the exercise has been delayed. Crocodile Gold Australia has requested the vendor to process and interpret the TEMPEST data as soon as possible, so GDF-formatted data could be provided to the statuary authority. In the next reporting period, targets/anomalies defined by the high resolution geophysical data will be field tested. A program of soil/rock chip sampling will be undertaken. It is expected that this program will identity additional targets for gold and uranium mineralisation, which may lead to RC/RAB drilling.