Crocodile Gold Inc.

Crocodile Gold Inc.

September 08, 2009 16:47 ET

Crocodile Gold Already Increasing Resources-New Inferred Resource at Iron Blow Adds 210,000 Ounces of Gold and 10 Million Ounces of Silver to Overall Resource

TORONTO, ONTARIO--(Marketwire - Sept. 8, 2009) - Crocodile Gold Inc. today announces an initial National Instrument 43-101 compliant inferred resource estimate on its polymetallic Iron Blow project in the Northern Territory of Australia. The estimated inferred resource at Iron Blow is 3,174,876 tonnes grading 2.08 g/t gold, 100.9 g/t silver, 0.76% lead, 3.28% zinc, and 0.19% copper. The contained gold content of the resource is 210,000 ounces of gold. Table 1 summarizes the inferred resource estimate. The mineralization occurs in six distinct lodes within the deposit. The mineralization remains open at depth and along strike, and there is potential to expand the scope of this resource based on the nature of mineralization.



Table 1: Iron Blow Initial Inferred Resource Estimate
(at 1.0 g/t Au cut-off grade)

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Gold (Au) Silver (Ag) Lead (Pb) Zinc (Zn) Copper (Cu)
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Tonnes 3,174,876 3,174,876 3,174,876 3,174,876 3,174,876
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Grade 2.08 g/t 100.9 g/t 0.76% 3.28% 0.19%
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Contained
Metal 210,000 oz 10,000,000 oz 53,000,000 lbs 230,000,000lbs 13,000,000lbs
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The resource estimate was prepared by Odessa Resources Pty Ltd and Geostat Services Pty Ltd. It is based on six diamond drill holes totalling 1,803.3 metres of HQ-diameter diamond drill core with mineralization ranging from 60 metres to 230 metres below surface occurring within six distinct lodes. The resource estimate is stated at a cut-off grade of 1.0 g/t gold and has been estimated using inverse distance squared interpolation of blocks within each lode. The average specific gravity used was 3.4 tonnes per cubic metre. Lode wireframes were delineated from sectional outlines to represent all mineralizaton. The wireframed lodes extend over a 200 metre strike length and a maximum down-dip extent of 230 metres. Further drilling will help in determining the ultimate size and potential of the deposit.

Mike Hoffman, President and CEO of Crocodile Gold commented, "The new inferred resource at Iron Blow shows the continued prospectivity of our 3,500 km2 tenement package in the Northern Territory of Australia. We initiated a $9 million exploration program in early August in a number of areas to increase the confidence level of resources and to increase the overall resource."

Iron Blow is a stratabound polymetallic massive sulphide deposit located 12 kilometres to the east of Brocks Creek underground mine in the Burnside tenement package located approximately 150 kilometres south of Darwin in the Northern Territory of Australia. Mineralization includes gold, lead, zinc, silver and copper occurring within lodes oriented in a north-south direction steeply dipping at approximately 70 degrees to the east. Iron Blow has had historical small scale underground and open pit production.

The Iron Blow drill results were released by Crocodile Gold on September 2, 2009. This press release can be viewed at www.crocgold.com and also www.franc-or-resources.com.

Quality Assurance & Quality Control Procedures

Classification of the resource involved several criteria including drill hole spacing, sampling density, sampling locations, lode geometry, QA/QC, bulk density and confidence in grade continuity. The resource is classified as inferred as it has no guarantee of being economic or mineable, and further evaluation is required.

Qualified Person

Alfred John Gillman of Odessa Resources Pty Ltd and Fleur Louise Muller of Geostat Services Pty Ltd are the "qualified persons" as such term is defined in National Instrument 43-101 and have reviewed and confirmed the data included in this press release.

About Crocodile Gold

Crocodile Gold is a private Canadian company that recently completed the acquisition of a number of past producing gold assets in the Northern Territory of Australia from GBS Gold. These assets are held through its 100% owned subsidiary Crocodile Gold Australia Pty Ltd. The assets comprise the Burnside Project, Pine Creek, Maud Creek and the Tom's Gully Gold Project. The Tom's Gully Gold Project includes the Tom's Gully underground gold mine and is located approximately 90 kilometres east of Darwin, Northern Territory. The Burnside Project includes the Brocks Creek underground gold mine, the Chinese South and North Point open pit gold mines and the Cosmo Deeps undeveloped gold deposits, among others.

Proposed Reverse Take-over Transaction with Franc-Or Resources

Crocodile Gold and Franc-Or Resources ("Franc-Or"), a TSX-listed company (TSX:FOR), entered into a binding letter of intent on August 6, 2009 pursuant to which Franc-Or will acquire all of the issued and outstanding shares of Crocodile Gold through a proposed reverse take-over transaction. Prior to the completion of the transaction, Franc-Or will complete a consolidation of its issued and outstanding common shares on the basis of one new Franc-Or common share for each 6.3 existing Franc-Or common shares. The transaction is expected to be completed in October 2009. Following completion, it is expected there will be 101,637,044 common shares of the new Franc-Or, with current Crocodile Gold shareholders owning 90% of Franc-Or and current Franc-Or shareholders owning 10% of Franc-Or. The name of the new company will be changed to Crocodile Gold Corp.

Cautionary Note

Certain information set forth in this press release contains "forward-looking statements", and "forward-looking information under applicable securities laws. Except for statements of historical fact, certain information contained herein constitutes forward-looking statements which include management's assessment of Crocodile Gold's future plans and operations and are based on Crocodile Gold's current internal expectations, estimates, projections, assumptions and beliefs, which may prove to be incorrect. Some of the forward-looking statements may be identified by words such as "expects" "anticipates", "believes", "projects", "plans", and similar expressions. These statements are not guarantees of future performance and undue reliance should not be placed on them. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause Crocodile Gold's actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to: liabilities inherent in mine development and production; geological, mining and processing technical problems; Crocodile Gold's inability to obtain required mine licenses, mine permits and regulatory approvals required in connection with mining and mineral processing operations; competition for, among other things, capital, acquisitions of reserves, undeveloped lands and skilled personnel; incorrect assessments of the value of acquisitions; changes in commodity prices and exchange rates; currency and interest rate fluctuations; various events which could disrupt operations and/or the transportation of mineral products, including labour stoppages and severe weather conditions; the demand for and availability of rail, port and other transportation services; and management's ability to anticipate and manage the foregoing factors and risks. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Crocodile Gold undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements.

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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