Crocodile Gold Corp.
TSX : CRK

Crocodile Gold Corp.

December 07, 2009 08:15 ET

Crocodile Gold Commences Drilling at Cosmo: Step Out Drilling Up to 400 Metres Beyond Current Resource

TORONTO, ONTARIO--(Marketwire - Dec. 7, 2009) - Crocodile Gold Corp. (TSX:CRK) ("Crocodile Gold" or the "Company") today announces that diamond drilling has commenced at its Cosmo project in the Northern Territory of Australia (refer to Figure 1 below for location map). The drilling activity is part of the previously announced US$8.4 million exploration program being conducted on the Company's extensive landholdings in the Northern Territory (see Crocodile Gold press release dated November 12, 2009).

Background

The Cosmo project is located 130 kilometres southeast of the city of Darwin (Figure 1). It has historically produced approximately 470,000 ounces of gold at a grade of 2.1 g/t gold from open pit, to a depth of approximately 140 metres from the period 1987 to 1993. Crocodile Gold is currently planning to develop the project as an underground mine commencing in the second half of 2011, with production potentially reaching approximately 100,000 ounces per year.

The current exploration program initially consists of up to five drill holes spaced approximately 100 metres apart. The program is designed to achieve five intersections into the central part of the projected down-plunge extension of the current mineralization (Figure 2). The drilling will test an area 400 metres laterally to the north, approximately equivalent to the current strike length, and 600 metres down-plunge. If successful, this program could have a significant impact on the potential at the project. Of particular significance is one historic intersection, which lies approximately 70 metres north of the current resource limits, and intersected 6.12 g/t gold over 14 metres and therefore indicates the potential for additional mineralization to the north of the current resources (Figure 2). The results of the initial drilling will guide the next stage of drilling.

The Cosmo project is currently the company's most significant project in terms of contained ounces, accounting for 64% of reserves, 22% of Measured and Indicated resources, and 32% of total Inferred resources. Reserves and resources are summarized in Table 1 below. Mineralization has a strike length of 450 metres, extends to a depth of approximately 750 metres below surface and remains open at depth, along strike and down-plunge to the north (Figure 2). Historic intersections within the current resource include, for example, 9.6 g/t gold over 22 metres, 10.2 g/t gold over 15 metres, and 5.3 g/t gold over 24 metres (Figure 2).

The Cosmo lodes are hosted within Proterozoic sediments and are mostly conformable with a large north-plunging overturned anticline. Several parallel gold-bearing lodes are developed on both the sub-vertical eastern limb and on the moderately-west dipping west limb. Individual lodes attain true widths of up to 12 metres on the eastern limb and up to 20 metres on the western limb.

In releasing this information, President and CEO, Mike Hoffman, commented, "We are pleased and excited to have commenced this program at Cosmo, which has the potential to expand existing resources. We look forward to sharing results with investors as they become available."



Table 1: Cosmo Reserves & Resources
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Reserves Probable Mineral Reserve
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Deposit Cut-off (g/t) Tonnes Gold Grade (g/t) Contained oz Gold
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Cosmo 3.2 2,200,000 5.0 350,000
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Gold Price $US 775/oz; $A:$US 0.80
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Measured Mineral Indicated Mineral Inferred Mineral
Resource Resource Resource
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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
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4,244, 670, 4,503, 570,
Cosmo 2.0 000 4.9 000 2.0 000 3.9 500
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(i)Resources include reserves


Qualified Person

Alfred John Gillman of Odessa Resources Pty Ltd is a "qualified person" as such term is defined in National Instrument 43-101 and has reviewed and confirmed the data included in this press release.

Drill core was assayed at Northern Australian Laboratories (NAL).

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 owns the 8,000 tpd Union Reefs mill and the 800 tpd Tom's Gully mill. 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, operations and mineral resource estimates 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; the ability to secure adequate financing 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.

To view Figure 1: Crocodile Gold Northern Territory Location Map and Figure 2: Cosmo Long Section, please visit the following link: http://media3.marketwire.com/docs/crk_12_7_2009_fig_1_and_2.pdf

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
    Email: info@crocgold.com
    Website: www.crocgold.com