Annual Technical Report ERL 130 Esmeralda - Union Reefs Project for period 17 November 2011 to 16 November 2012

Abstract

ELR (Exploration Licence in Retention) 130 covers strategic landholding which is located about 210 km SE of Darwin, NT, and 8km north east of Pine Creek. Crocodile Gold Australia Pty Ltd acquired the tenement in November 2009 as part of the acquisition of all assets held by GBS Gold Australia Pty Ltd in the Northern Territory. ELR 130 currently sits where MLN 27999 is under application, it is planned to try and progress this application in the coming year Previous exploration by Cyprus Gold Corporation and Acacia Resources had outlined two significant adjacent and sub parallel gold resources (A and B), known as Esmeralda deposit which is located some 4km south of the Union Reefs mill. AngloGold estimated that the deposit at 0.7g/t cut-off, contains a combined inferred resource of 1.26Mt at 1.62g/t Au. (66,000oz). ELR 130 lies on the eastern margin of the north-west trending Pine Creek Shear Zone (PCSZ). Rocks of the Mt Bonnie Formation that is the uppermost formation of the South Alligator Group, and the Burrell Creek Formation which is the lowest unit of the Finniss River Group, dominate the stratigraphy of the Union Reef field. The tectonic corridor is confined to the east (Allamber Springs Granite) and west by lobes of the Cullen Batholith and rocks within this zone have been tightly folded and in high strain areas, subjected to fold limb failure. Axial planes and bedding tend to dip steep westerly. The area of ELR 130 is dominated by siltstones, mudstones and greywackes of the Mt Bonnie Formation, the unit is punctuated by horizons of chert and tuffite as well as thin distinctive banded iron formation facies. Thin tourmalinites have been recorded in the area. Exploration activities included a field orientation visit and updating of the mineralisation model. A detailed review of the Esmeralda deposit was also completed during the year. Planned exploration activities will include resource modelling and a multi staged drill program of reverse circulation and diamond drilling with the first stage comprising of 4 reverse circulation holes for 148m.