Bridging report MLN 13, MLN 1130, MCN 317, MCN 523, MCN 1054, MCN 1055, MCN 4072, MCN 4074 Pine Creek group 16 July 2010 to 15 March 2011

Abstract

The Pine Creek Group of tenements comprises 8 tenements (MLN's 13, 1130, and MCN's 317, 523, 1054, 1055, 4072, 4074). This group is located approximately 220 km SE of Darwin. Crocodile Gold Australia acquired the tenement group in 2009 by purchasing liquidated assets of GBS Gold Australia. Historically, the tenements have been the focus of alluvial and hard rock gold mining activity since 1869. In the central part of the tenement group, the tightly folded host greywacke-siltstone facies sequences of the South Alligator and Burrell Creek Group are present, which have been intruded by the Cullen Batholith. Gold mineralisation within the Pine Creek group is focused in the axial zones of parallel major upright folds. The most productive is the Enterprise Anticline; others are International-Czarina anticlines. The folds plunge shallowly towards 135 degrees at around 10 degrees and the limbs dip southwest and northeast at around 65 degrees. There are a number of gold deposits located within this geological setting. During the reporting period, two environmental assessment holes were drilled at the north end of the International pit (MLN 1130) for the purpose of waste rock classification. Samples were collected from each hole and assayed for total sulphur, ANC and NAG. The results from the test work will be used to confirm the acid base characteristics, existing acidity, elemental composition and solubility and provide data for developing and evaluating waste rock management options for reestablishment of mining operations within the International pit. A review and update of the Pine Creek resource model was also completed. During the next reporting period, work on the Pine Creek group of tenements will include a review of the entire Pine Creek project. Resource drilling has been planned and results from the drilling will be used to update the resource model. Further environmental assessment drilling may also be conducted.