Annual exploration report ERL 130 Esmeralda Union Reefs Project year ending 16 December 2010

Abstract

ERL 130 covers strategic landholding which is located about 210 km SE of Darwin, NT, and 8km north east of Pine Creek. Crocodile Gold Australia Pty Ltd acquired the tenement in November 2009 as part of the acquisition of all assets held by GBS Gold Australia Pty Ltd (liquidated) in the Northern Territory. Previous exploration by Cyprus Gold Corporation and Acacia Resources had outlined two significant adjacent and sub parallel gold resources (A and B), known as Esmeralda deposit which is located some 4km south of the Union Reefs mill. AngloGold estimated that the deposit at 0.7g/t cut-off, contains a combined inferred resource of 1.26Mt at 1.62g/t Au. (66,000oz). Within the project area geology is dominated by clastic rocks of the Mt Bonnie Formation that is the uppermost formation of the South Alligator Group, and the Burrell Creek Formation which is the lowest unit of the Finniss River Group. They have been intruded by the Palaeoproterozoic granites such as Allamber Springs towards east and Tabletop Granite towards west. In the year under review, Crocodile Gold Australia took over the control of ERL 130 after purchasing assets held by GBS Gold Australia (liquidated) in the Northern Territory. The tenement is located in a close proximity to the Union Reefs mill and contains gold resource of 1260 000 tonnes at 1.62 g/t for 660 000 oz. During this period, a Mineral Lease application was lodged to cover the entire ERL 130, prelude to resource development. Other activities were a technical review, tenement ranking and reconnaissance visits. In the next reporting period, resource and ore body modeling of gold mineralisation present within ERL 130 will be undertaken, which will help to understand resource present more accurately. It will also help to identify mineralisation trend within the project area. A program of soil/rock chip sampling will also be undertaken, and if encouraging result received, it will lead to RC drilling.