Bridging report MLN 342, MLN 346, MLN 405, MLN 459, MLN 811, MLN 1033, MLN 1039, MCN 504, MCN 505, MCN 3161 Burnside Project - Mount Bonnie 1 January 2009 to 15 February 2010

Abstract

The Mount Bonnie group of tenements forms one of the significant projects which is located about 145km SE of Darwin NT and 11km ENE of the Hayes Creek road house. It was discovered during 1870s as part of the regions gold rush. First mining activity was recorded between 1913 and 1916. Intermittent mining activity took place from time to time and perhaps the most notable is in 1983, when a total of 110 000 t of ore @ 7g/t Au and 230 g/t Ag was mined and processed. The tenement group comprises 108.75 hectares and is situated within Pastoral Lease No. 903, Douglas, held by Tovehead Pty. Ltd. The titles were originally granted to Zapopan N.L. and subsequently transferred to Dominion Gold Operations Pty. Ltd. GBS Gold Australia Pty Ltd acquired 100% control of the leases in 2006 until going into voluntary administration in 2008. After meeting regulatory and statuary requirements all these assets including the Mount Bonnie group of tenements were transferred to Crocodile Gold Australia on 6 November 2009. The deposit is hosted by Mount Bonnie Formation that lies within the upper part of the South Alligator Group. Rock types associated with the mine sequence are interbedded shale, siltstone, greywacke, dolomite and minor pebble breccia. A major stratigraphically concordant sill of the Zamu Dolerite underlies the mine sequence. The Mount Bonnie lode system dips 40 degrees west and is up to 15m thick. Originally a surface gossan could be traced discontinuously for 100m. The tenement group remained under care and maintenance during the majority of the reporting period and therefore no exploration activities were carried out. In June 2009, Crocodile Gold Australia announced to purchase all assets held by GBS Gold Australia (liquidated). After meeting all statuary and regulatory requirements, these assets included the Mount Bonnie group were transferred to Crocodile Gold in November 2009. During the next reporting period, exploration activities will include a review of historic exploration and mining data including a review of the incomplete drilling program conducted by GBS Gold in 2008.