Annual report MLN's 1058 and 1083, MCN's 3333 - 3339 Mount Bundey and Toms Gully project 1 January 2010 to 31 December 2010

Abstract

The Mt Bundey (formally Rustlers Roost) and Toms Gully tenement group (MCN's 3333-3339, MLN 1058 and MLN 1083 (Rustlers Roost)) are located some 110 kilometers south-east of Darwin. These tenements were granted in 1989 (expect for MLN 1083, granted in 1991). In July 2007, GBS Gold Australia Pty Ltd acquired all mining and exploration assets, located in the Toms Gully Region, including tenement group discussed in this report. Crocodile Gold Australia secured the project area along with other tenements after GBS Gold Australia went into voluntary administration. The MCN's 3333-3339 and MLN 1058 lie within the Wildman Siltstone, a sequence of tightly folded strata with an unconformable contact between the Wildman Siltstone and the Koolpin Formation. A small portion of the Koolpin Formation is also covered by the tenements. Towards south-east, Mount Bundey Granite intrudes the orogenic sequence. MLN 1083 covers rocks of the Burrell Creek Formation of the Finniss River Group and Mt Bonnie Formation of the South Alligator Group. Activities during the 2010 reporting period included RC and diamond drilling at Toms Gully with the results used to update the resource model. The Mt Bundey deposit resource model was also reviewed and optimised. Some environmental sampling was also conducted at the Mt Bundy heap leach pad. During the 2011 reporting period, Crocodile Gold will conduct a review of the Toms Gully and Mt Bundey deposits which will include mapping and field reconnaissance visits.