Annual Group Report, Burnside Group - Bridge Creek, Bridge Creek North, Brocks Creek UG & Rising Tide, Davies Prospect, Fountain Head, Howley, Howley Ridge, Iron Blow, Mt Bonnie, Woolwonga and Yam Creek Year ending 15 February 2012

Abstract

The Burnside group of tenements are located approximately 150 km SSE of Darwin along the Stuart Highway. The Burnside mining group covers Bridge Creek, Bridge Creek North, Brocks Creek UG and Rising Tide, Davies Prospect, Fountain Head, Howley Group, Howley Ridge, Iron Blow, Mt Bonnie, Woolwonga and Yam Creek. The tenements were acquired by Crocodile Gold in November 2009 from previous owners GBS Gold Australia. The stratigraphy of the Burnside project area is dominated by the Wildman Siltstone of the Mt Partridge Group and units of the South Alligator Group and the overlying Finniss River Group. This volcano-sedimentary sequence has been moderately to tightly folded along several northwest trending axes within the project area, the most prominent of which are the Howley, Brocks Creek/Zapopan and the Fountain Head Anticlines and the Margaret Syncline. The axial plane of these folds is characterized by intense beddingparallel faulting and shearing along predominantly northwest trends. The Wildman Siltstone consists of medium to thinly bedded, to laminated fine grained pyritic carbonaceous sediments with minor sandstone and tuff beds, with an overall thickness of approximately 1,000m.The Koolpin Formation consists of sulphidic and carbonaceous argillite, ferruginous chert, ironstone, silicified dolomites and phyllitic mudstones. The contact between the Wildman Siltstone and the overlying Koolpin Formation is partially conformable and partially an angular unconformity. The Koolpin Formation varies in thickness from less than 300 m to in excess of 1,000 m, but its overall thickness is difficult to determine due to the presence of several intrusive sills of Zamu Dolerite, which vary from several meters to a few hundred meters in thickness. The Burrell Creek Formation comprises a 1,500 m thick sequence of turbiditic sediments including greywackes, siltstones and mudstones. The Mount Bonnie Formation is a transitional unit between the Koolpin and Burrell Creek Formations, comprising greywacke, carbonaceous siltstone, chert, tuff and ironstone and with a variable thickness between 150 m and 400 m thick. The Gerowie Tuff (GTF) is up to 400 m thick and consists of tuff, tuffaceous chert and tuffaceous siltstone, with subordinate amounts of laminated cherts and carbonaceous siltstones. Numerous semi-conformable sills of pre-orogenic Zamu Dolerite intrude the Koolpin Formation and the Gerowie Tuff. The post mineralization Burnside Granite and Mount Goyder Syenite intrude the sedimentary sequence. Exploration activities conducted during the reporting period included several project reviews of the various deposits, including a review of historic geophysical and geochemical data. A high resolution VTEM survey was completed over parts of the Burnside mining group which included some of the Cosmo/Howley tenements, parts of the Brocks Creek mining area, the Yam Creek, Iron Blow and Mt Bonnie mining tenements and the Woolwonga mining area. Preliminary results from the VTEM survey were used in conjunction with historic data to undertake drill planning for campaigns of RC and diamond drilling at Yam Creek, Iron Blow and Mt Bonnie deposits. Additional drilling was also undertaken at Rising Tide deposit and the Cosmo Deeps underground deposit. There was also several resource model reviews and updates conducted.