Annual Group Report ML 23617, MLN 414 to MLN 418 Burnside Project - Bon's Rush and Rhodes Group year ending 15 February 2014, GR186

Abstract

The Mt Paqualin group of tenements (ML 23617 and MLN 414 to 418) are located approximately 150 km SSE of Darwin. The tenements host the Bon's Rush and Rhodes gold deposits. The tenements were acquired by Crocodile Gold in November 2009 from previous owners GBS Gold Australia. The area covers rocks of the South Alligator Group which comprises the Koolpin Formation, Gerowie Tuff and Mount Bonnie Formation. The sequence occurs as north-trending tongue which is surrounded by the Burrell Creek Formation. The sequence has been folded into south-plunging anticlinal structure where western limb has been affected by a NW-trending fault. The Zamu dolerite occupies the hinge of the fold and appears to have been interlayered within the Koolpin Formation and Gerowie Tuff. Outcrop within the Rhodes group of tenements is very poor due to extensive black soil and creek alluvium deposited by Howley Creek immediately to the south. Interpretation from regional mapping, and supported by drilling, shows that the Gerowie Tuff, of the middle South Alligator Group, underlies much of the area. This unit has been intruded by mafic Zamu sills and folded into north trending structures. Work conducted on the Mt Paqualin group of tenements during the reporting period included a review of the Rhodes deposit and review of historic drilling for both Rhodes and Bon's Rush deposits. A review of the Bons Rush deposit conducted in 2012 was used to update the Burnside Mineral Resources and Resource Reserves NI43-101 technical report completed in July 2013. A project ranking exercise was also completed for all CGAO projects, part of which covered the Mt Paqualin group. During the next reporting period exploration will include drill planning, field reconnaissance visits and mapping of noted high potential VTEM targets.