Relinquishment Report ELR 89 Burnside Project - Big Howley 19 September 1989 to 18 September 2013

Abstract

ELR 89 is located 130km SSE of Darwin, NT, and 5km NW of the Cosmo Howley Gold Mine. On the 6th of January 1993 MLNA 1129 was applied for over ELR 89, through the native title process this new Mineral Lease is close to being granted. This has resulted in Crocodile Gold decided to relinquish the ELR while the MLN is granted as no on ground work is planned in the coming year. It covers a sector of the Howley Anticline, a complex regional fold within South Alligator Group sediments of Lower Proterozoic age. The structure strikes and plunges shallow north-westerly within the tenement and in the region hosts a number of important gold deposits, including the Chinese 1, 2 and 3 deposits, the Big Howley deposit, and the major Cosmo Deeps deposit. Previous exploration by Northern Gold NL comprised geochemical sampling and RC drilling. The work concentrated on the South Ridge Prospect, a 2km long mineralised zone coincident with the Howley Anticlinal structure and along strike from the Big Howley open pit. An inferred resource of 204,000t at 2.4 grams per tonne Au was estimated at South Ridge by Northern Gold N.L and an ELR was applied for to protect the then sub economic resource. In April 2002 Territory Goldfields NL and Buffalo Creek Mines NL entered into a joint venture that merged certain tenement assets within a 30km radius of the gold treatment plant at Brocks Creek and included ELR 89. The South Ridge resources and extensions to the Big Howley pit have been the subject of technical reviews as part of the overall assessment of advanced stage gold deposits in the Burnside region. This review factored in the economic impact of the Union Reefs mill purchase and movements in the Australian gold price. The review concluded that the South Ridge and Big Howley extension rank low compared to other deposits along the trend that have been drilled by the Burnside Joint Venture. In 2009 and 2010 Crocodile Gold drilled 6 RC holes below the Big Howley pit on ELR 89 for around 804 metres of drilling. This drilling was used in a complete up-date of the Howley deposit Mineral Resource estimation. This included the remodelling of the geology and mineralisation for the Big Howley deposit. It was also an opportunity to combine the mineral resources for the entire trend into one model. This model was released under the guidance of the NI43-101 reporting system as is required for companies listed on the Toronto Stock Exchange (TSX). The newly modelled Howley deposit was released onto SEDAR in April 2011 and related to the closing Mineral Resource for Howley for the end of 2010. In June 2013 a new Mineral Resource statement was released for the Burnside project which includes the Howley deposit. While the mineral resource estimation was not changed from the 2010 model, some mining depletion was removed from the tonnes and grade reported. No mining had taken place on the Big Howley deposit but mining had occurred at the Howley Main and Mottrams portions of the mining area.