Annual Group Report Burnside Group - Bridge Creek, Bridge Creek North, Brocks Creek UG and Rising Tide, Davies Prospect, Fountain Head, Howley, Howley Ridge, Iron Blow, Mt Bonnie, Woolwonga and Yam Creek year ending 15 February 2014, GR187/13

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, Cosmo/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 bedding-parallel 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.During the 2013 reporting period Crocodile Gold conducted field trips to Brocks Creek-Rising Tide, Fountain Head and Big Howley deposits collecting grab samples from stockpiles and historic tailings material to determine if the stockpiles can be processed. A total of 98 samples were collected; 64 from Brocks Creek and Rising Tide (including Coppertop and John Bull), 14 from Big Howley and 20 from the Fountainhead project. 148 resource definition diamond holes were drilled at the Cosmo underground deposit, focussing on the F1 Fault on the Eastern Limb of the Howley Anticline with additional holes targeting the Western limb of the Howley Anticline fold hinge. Cube Consulting Pty Ltd updated the Cosmo Mineral Resource and Mineral Reserves estimation; using some of the new resource drilling information. The Burnside and Cosmo Mineral Resources and Reserves NI43-101 technical reports were also updated in July 2013. The work done by Cube Consulting on the Cosmo deposit well as the review of the Bridge Creek and Bridge Creek North deposits completed in 2012 were included in both technical report updates. Crocodile Gold geologists also went through a project ranking exercise whereby each CGAO project was ranked, according to select criteria, to determine which projects are of higher priority for the company business plan. Other activities included a significant campaign to rehabilitate some of the areas at the Yam Creek, North Point, Princess Louise, Temperance and Mt Bonnie mine sites. This involved improving site security and safety with regard to public access to the pits and WRD soil erosion and instability issues.