Annual Report EL 28112 Mt Bundy Project for period ending 13 January 2012

Abstract

EL 28112 is a tenement of the Mt Bundy exploration group located about 90 km SE of Darwin, along the Arnhem Highway. The tenement is situated adjacent to the Rustlers Roost mining lease. The licence was granted to Crocodile Gold in January 2011. Rum Jungle Uranium Limited has the rights to explore for uranium under an agreement with Crocodile Gold. The tenement is made up of rocks of the Mount Bonnie Formation of the South Alligator group and the Burrell Creek Formation of the Finnis River group. The Mount Bonnie Formation is dominated by a shallow marine sequence of interbedded and graded siltstone, chert and greywacke with occasional BIF's. The unit can be up to 600m thick and is generally iron rich and may be siliceous in places. The Mount Bonnie Formation hosts the Rustler's Roost deposit. Conformably overlying the Mount Bonnie Formation is the Burrell Creek Formation interpreted as a sequence of fine to coarse marine sediments and appears to be part of continuous sedimentation process. Due to the lack of marker horizons and poor exposure the width of the unit is unknown but is thought to be >1000m. This Formation is considered prospective for large low-grade gold deposits and has the potential for small high-grade deposits. During the reporting period, Taiga geological consultants conducted a review of historic geophysical data over the Mt Bundy project area. Scanning and collation of the reports and documents in the library at the Brocks Creeks exploration office was also undertaken. The scanned reports are currently being entered into a new reporting database which was set up by Mercator database consultants during the year. During the 2012 exploration year, activities will include an ongoing review of historic geochemical and geophysical data, with reconnaissance field visits and geological mapping. Rock chip and soil sampling may be conducted if targets are identified. The scanning and collation of the reports and documents in the library at Brocks Creek exploration office will continue with the digital copies being uploaded to the new reporting database with the assistance of Mercator database consultants.