Annual report MLN's 1058 and 1083, MCN's 3333 - 3339 Mount Bundey and Toms Gully Project 1 January 2011 to 15 October 2011

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 2011 reporting period included a review and appraisal of the Toms Gully project. In the last reporting period several RC and diamond holes were drilled in the south of the deposit to fill in gaps in the resource model. The new resource model showed that there is little continuity between drill holes and gold grade, making reconciliation difficult. Further work is required to further understand the orebody. Reconnaissance field visits were also conducted. The environmental department also conducted some waste rock sampling for the purpose of waste rock classification and future remediation. Work on the Mt Bundey mining tenement included a review and appraisal of the project. Reconnaissance field visits were also conducted. Exploration activities for the next reporting year will include further geological work on the Toms Gully mine to understand the orebody and aid with resource reconciliation. Geological mapping and reconnaissance visits will also be conducted for the Mt Bundey mining tenement.