Bridging report EL 23431 Burnside - Thunderball Prospect 19 December 2009 to 15 December 2010

Abstract

EL 23431 is one of the significant tenements within Crocodile Gold Australia portfolio which is located about 140km SE of Darwin, NT and 14 km SE of Brocks Creek. It was part of the Burnside Joint Venture, managed by Burnside Operations P/L comprising Territory Goldfields NL and Buffalo Creek Mines NL. The latter were subsidiaries of Northern Gold NL which was subsequently taken over by GBS Gold Australia Pty Ltd. On 15 September 2008, GBS Gold Australia went into voluntary administration and all assets held by the company were liquidated. Crocodile Gold Australia purchased all assets including EL 23431 on 9 November 2009 and commenced mining and exploration activities in the region. The tenement comprises a suite of meta-sedimentary rocks belonging to the Palaeoproterozoic South Alligator Group. The Group is part of the Pine Creek Orogen sequence and is contiguous with the base metal and gold mineralised localities of Mount Bonnie and Golden Dyke. The Hayes Creek Fault strikes north east through the centre of the prospect and is important in the localisation of uranium and gold mineralisation. During reporting period, a dedicated exploration program was undertaken to assess the full potential of uranium mineralisation at Thunderball, discovered in previous exploration program. This included geological mapping, drilling and high resolution geophysical survey over the project area. Down hole logging and assaying of drill chip samples confirmed the presence of uranium mineralisation which is confined to carbonaceous siltstone and tuffaceous units of the Mt Bonnie and Gerowie Tuff. During the 2009 to 2010 reporting period, exploration focused on the Thunderball uranium prospect conducted by Thundelarra Exploration Pty Ltd. Exploration activities included a structural study of the Thunderball prospect, a program of orientated soil sampling, RC and diamond drilling with down-hole geophysics, regional photo-geological mapping and interpretation and finally some petrology and mineralogy analysis. A total of 29 holes were drilled for 715m of HQ diamond core and 4122m of RC drilling. Drilling defined the limits of both zones of the Thunderball uranium mineralisation. Infill drilling established sufficient continuity for the estimation of a resource at Thunderball, work that is currently in progress. One drill-hole yielded a significant gold intercept.