Crocodile Gold Corp.
TSX : CRK

Crocodile Gold Corp.

November 12, 2009 11:00 ET

Crocodile Gold Announces Details of Major Exploration Program

TORONTO, ONTARIO--(Marketwire - Nov. 12, 2009) - Crocodile Gold Corp. (TSX:CRK) is pleased to announce details of its initial 12 month US$8.4 million exploration program that it is conducting on its extensive land position in the Northern Territory, Australia.

The program commenced in August 2009 with the aim to upgrade and extend current resources, add to the current mining reserves, and to determine the potential to increase the resource base at a number of key projects.

In announcing the details of this program, President and CEO, Mike Hoffman, stated "We believe that Crocodile owns a significant new emerging gold camp in Australia and felt that it was important to aggressively explore the key projects to demonstrate their potential."

The drilling programme comprises approximately 50,500 metres of reverse circulation drilling in 280 drill holes, 14,400 metres of surface diamond drilling in 60 drill holes and 4,880 metres of underground diamond drilling in 27 drill holes. The drilling programme is focusing on four key areas, the Chinese open pit areas, the Brocks Creek underground mine, the Tom's Gully underground mine and the Cosmo underground development project (see Figure 1 - Location Map). There are currently four drilling rigs (two diamond and two reverse circulation) drilling on site.

To view Figure 1 - Crocodile Gold Northern Territory Location Map, please visit the following link: http://media3.marketwire.com/docs/northernterritory.pdf

CHINESE OPEN PIT AREAS - This area encompasses the site of the initial open pit mining which re-commenced recently (see news release dated November 9, 2009). Past mining activity was limited to a number of small shallow open pits and past exploration drilling averages only 80 metres in depth, thus limiting the down-dip extent of the known resources. The area hosts a substantial portion of the mineral resource underlying Crocodile Gold's tenements (see Table 1 - Chinese Reserves/Resources) and lies within a 5 kilometre corridor extending north from the Cosmo open pit. Only a fraction of this corridor has been explored. The current program comprises 26,152 metres in 159 holes and is designed to upgrade and extend the current reserves and resources along strike and at depth.



Table 1: Chinese Open Pit Areas Reserves/Resources
----------------------------------------------------------------------------
Reserves Probable Mineral Reserve
----------------------------------------------------------------------------
Deposit Cut-off (g/t) Tonnes Gold Grade (g/t) Contained oz Gold
----------------------------------------------------------------------------
Chinese
South
Extension 1.4 1,000,000 2.1 68,000
----------------------------------------------------------------------------
Gold Price $US 775/oz; $A:$US 0.80
----------------------------------------------------------------------------
Resources Indicated Resources Inferred Resources
----------------------------------------------------------------------------
Cut- Gold Gold
off Grade Grade
Deposit (g/t) Tonnes (g/t) oz Gold Cut-Off Tonnes (g/t) oz Gold
----------------------------------------------------------------------------
Chinese
South
Extension 0.7 3,621,000 1.6 184,800 0.7 1,579,000 1.3 65,000
----------------------------------------------------------------------------
Mottrams 0.7 2,236,000 1.2 87,300 0.7 574,000 1.1 20,900
----------------------------------------------------------------------------
Chinese
1, 2, 3 0.7 3,342,000 1.4 153,300 0.7 1,979,000 1.4 88,800
----------------------------------------------------------------------------
Big Howley 0.7 299,000 1.5 14,400 0.7 348,000 1.8 19,800
----------------------------------------------------------------------------
Total
Chinese
Open Pits 0.7 9,498,000 1.43 439,800 4,480,000 1.36 194,500
----------------------------------------------------------------------------
Resources include reserves


BROCKS CREEK UNDERGROUND MINE - The ore body extends from surface to 500 meters vertically and remains open to depth. The project currently has a short mine life with limited reserves and resources (see Table 2 - Brocks Creek Reserves/Resources). The current program is designed to assess, by surface drilling, the potential to significantly expand the current resources and extend the mine life. A total of approximately 3,400 metres of diamond drilling is planned.



Table 2: Brocks Creek Reserves/Resources
----------------------------------------------------------------------------
Reserves Probable Mineral Reserve
----------------------------------------------------------------------------
Deposit Cut-off (g/t) Tonnes Gold Grade (g/t) Contained oz Gold
----------------------------------------------------------------------------
Brocks Creek 7.1 68,000 7.4 16,000
----------------------------------------------------------------------------
Gold Price $US 775/oz; $A:$US 0.80
----------------------------------------------------------------------------
Measured Mineral Indicated Mineral Inferred Mineral
Resource Resource Resource
----------------------------------------------------------------------------
Cut- Gold Cut- Gold Cut- Gold
Depo- off Ton- Grade oz off Ton- Grade oz off Ton- Grade oz
sit (g/t) nes (g/t) Gold (g/t) nes (g/t) Gold (g/t) nes (g/t) Gold
----------------------------------------------------------------------------
Brocks 47, 73,
Creek 3.0 6,000 17.3 3,4000 3.0 000 11.1 16,800 3.0 000 9.1 21,300
----------------------------------------------------------------------------
Resources include reserves


TOM'S GULLY UNDERGROUND MINE - The current program is focussed on confirming the geological model and providing the additional detail required for successful mining. More than 7,000 metres of drilling are included within the current program. A 22-hole diamond drill programme has been designed to upgrade and extend the current resources and reserves along strike and along dip.



Table 3: Tom's Gully Reserves/Resources
----------------------------------------------------------------------------
Probable Mineral Reserve
----------------------------------------------------------------------------
Deposit Cut-off (g/t) Tonnes Gold Grade (g/t) Contained oz Gold
----------------------------------------------------------------------------
Tom's Gully 7.0 370,000 8.3 99,000
----------------------------------------------------------------------------
Gold Price $US 775/oz; $A:$US 0.80
----------------------------------------------------------------------------
Measured Mineral Indicated Mineral Inferred Mineral
Resource Resource Resource
----------------------------------------------------------------------------
Cut- Gold Cut- Gold Cut- Gold
Depo- off Ton- Grade oz off Ton- Grade oz off Ton- Grade oz
sit (g/t) nes (g/t) Gold (g/t) nes (g/t) Gold (g/t) nes (g/t) Gold
----------------------------------------------------------------------------
Tom's
Gul- 496, 175, 184,
ly 3.65 900 11.0 100 3.65 400 11.4 67,500
----------------------------------------------------------------------------
Resources include reserves


COSMO UNDERGROUND DEVELOPMENT PROJECT - This is one of the Company's most significant projects, representing a substantial portion of the total reserves and resources (see Table 4 - Cosmo Reserves/Resources). The orebody has a strike length of at least 450 metres and continues to a depth of 800 metres. It remains open along strike and at depth and the current program is aimed at testing for extensions at depth and along strike. Geological modelling and geophysical data together with historic drill intersections suggest that the Cosmo system remains robust to considerable depth as the mineralised lodes "follow" the north-plunging host stratigraphy.



Table 4: Cosmo Reserves/Resources
----------------------------------------------------------------------------
Reserves Probable Mineral Reserve
----------------------------------------------------------------------------
Deposit Cut-off (g/t) Tonnes Gold Grade (g/t) Contained oz Gold
----------------------------------------------------------------------------
Cosmo 3.2 2,200,000 5.0 350,000
----------------------------------------------------------------------------
Gold Price: $US 775/oz; $A:$US 0.80
----------------------------------------------------------------------------
Measured Mineral Indicated Mineral Inferred Mineral
Resource Resource Resource
----------------------------------------------------------------------------
Cut- Gold Cut- Gold Cut- Gold
Depo- off Ton- Grade oz off Ton- Grade oz off Ton- Grade oz
sit (g/t) nes (g/t) Gold (g/t) nes (g/t) Gold (g/t) nes (g/t) Gold
----------------------------------------------------------------------------
4,244, 670, 4,503, 570,
Cosmo 2.0 000 4.9 000 2.0 000 3.9 000
----------------------------------------------------------------------------
Resources include reserves


Over the coming weeks, the Company intends to provide more specific details on the nature of these individual projects, their potential and exploration results from the current program as they become available.

Please refer to the Crocodile Gold and Franc-Or Information Circular of September 30, 2009 filed on SEDAR for details regarding the NI 43-101 compliant reserve and resource estimates of the deposits described above in this release.

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 Canadian company that has completed the acquisition of recent past producing gold assets in the Northern Territory of Australia. The assets comprise an area greater than 3,500 square kilometres and are located approximately 90 to 285 kilometres south of the capital city, Darwin, and include the Burnside Project, Tom's Gully Project and Maud Creek Project. The property contains 3.0 million ounces of NI 43-101 compliant measured and indicated resources (40.9 million tonnes at an average grade of 2.3 g/t gold), and 1.8 million ounces of inferred resources (25.9 million tonnes at an average grade of 2.3 g/t gold). (See Management Information Circular dated October 5, 2009 and Crocodile Gold Press Release dated September 8, 2009). The Burnside Project includes the Brocks Creek underground mine, the Chinese open pit mine and several additional deposits along the Cosmo/Chinese corridor, including the undeveloped Cosmo underground deposit. The Tom's Gully Project includes the Tom's Gully underground mine and the former Mt Bundy (Rustler's Roost) Mine. Crocodile Gold operates the 8,000 tpd Union Reefs mill and the 800 tpd Tom's Gully mill. Crocodile Gold plans to produce over 100,000 ounces of gold in 2010 and over 200,000 ounces in 2011. Crocodile Gold trades under the symbol CRK on the Toronto Stock Exchange.

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.

Contact Information

  • Crocodile Gold Corp.
    Michael Hoffman
    President and CEO
    416-861-2964
    or
    Crocodile Gold Corp.
    Ashleigh Meyer
    Manager, Investor Relations
    416-861-5899
    info@crocgold.com
    www.crocgold.com