Annual Technical Report MLN 1059 Moline Group of Deposits 16 August 2010 to 15 August 2011

Abstract

MLN 1059 is a strategic project within Crocodile Gold Australia's portfolio which is located about 240 km SE of Darwin. It covers Moline Gold Field (e.g Hercules, School, Moline and Tumbling Dice) which is located about 220 km SE of Darwin. Crocodile Gold purchased this tenement from the receivers of GBS Gold. Transfer of the title was not completed until August 2011 due to issues outside the control of Crocodile Gold. During the reporting period this title was under the name of Michael Teelow but was managed by Crocodile Gold. The tenement encompasses a suite of meta-sedimentary rocks which belong to the Burrell Creek and Mt Bonnie Formations. Locally these rocks are isoclinally folded with fold axes plunging at shallow angles to the south east. Mineralisation is found in zones of pyrite, quartz, and brecciated country rock with minor veinlets of sphalerite, tetrahedrite, arsenopyrite, chalcopyrite and carbonates. During the reporting period, Crocodile Gold Australia conducted several visits to the project. During these visits a large potential stockpile was noted and sampled, including some metallurgaical testing. Due to the success of this sampling the stockpile was then transported to the Union Reefs processing plant for milling. The company also commenced the preparations of a Mine Management Plan as required under the Mining Act. Crocodile Gold has also commenced 'due diligence' on the project area. The Moline project will remain under review and on availability of financial resources, a campaign of in-fill soil sampling will be carried out, and if new targets are identified that will lead to RC drilling. This work is planned over the coming years as this project area is significant in size and requires a great deal of preparation of data and reports. This will assist with all future exploration on this title.