Crocodile Gold Corp.
TSX : CRK
FRANKFURT : XGC
OTCQX : CROCF

Crocodile Gold Corp.

April 14, 2010 07:30 ET

Crocodile Gold Intersects 4.9 G/T Au Over 16 Metres at Cosmo Project 300 Metres North of Existing Resources

TORONTO, ONTARIO--(Marketwire - April 14, 2010) - Crocodile Gold Corp. (TSX:CRK) (OTCQX:CROCF) (FRANKFURT:XGC) ("Crocodile Gold" or the "Company") is pleased to announce the latest diamond drill results from its Cosmo project in the Northern Territory of Australia (refer to Figure 1 below for location map). The project is currently the site of an ongoing diamond drill program which is part of the recently expanded US$23 million exploration program being conducted on the Company's extensive landholdings in the Northern Territory (refer to Crocodile Gold press release dated March 22, 2010).

Highlights of these results are:

  • Hole CP03W1 intersected 4.9 g/t Au over 15.8 metres (true width 12.7 metres), which included a higher grade interval of 11.1 g/t Au over 4.8 metres (true width 3.9 metres);
  • The mineralization in this hole is within the Western Lodes and is located more than 300 metres north of the current NI 43-101 resources;
  • This intersection was at a vertical depth of approximately 675 metres and is the deepest intersection of Western Lode mineralization to date, and more than 300 metres below the base of current resources;
  • Very limited drilling has taken place between this intersection and existing resources suggesting the potential to expand resources;
  • Mineralization remains open along strike to the north, at depth and towards surface;
  • Hole GFG001W1 intersected 4.3 g/t Au over 15.4 metres (true width 9.0 metres) and 3.3 g/t Au over 7.50 metres (true width 5.0 metres);
  • This intersection was encountered as part of the infill diamond drilling program and is important since it confirms continuity of mineralization and grade;
  • The intersection is approximately 80 metres vertically above the recently announced intersection in hole GFG001 of 5.2 g/t Au over 22 metres (refer to Crocodile Gold press release dated February 25, 2010).

Hole CP03W1 was drilled as part of the step out drilling program designed to test for extensions of mineralization and was located between previously reported holes CP01 and CP05 (refer to Crocodile Gold press release dated February 25, 2010). The hole was located to intersect both the Western and Eastern Lodes, with the latter being the most significant contributor to the total Cosmo resources, and to date the Western Lodes being less explored and a less significant component of the resources.

As illustrated in Figures 2 and 3 below, the hole intersected significant mineralization along strike and more than 300 metres to the north of the currently defined limits of the Western Lodes, with the principal intersection of 4.9 g/t Au over 15.8 metres (true width 12.7 metres) which included a higher grade interval of 11.1 g/t Au over 4.8 metres (true width 3.9 metres). Limited drilling has taken place in the area from the northern boundary of the Western Lodes resource to the intersection in CP03W1, consequently it is believed that there is a strong possibility of defining additional mineralization in the Western Lodes to the north of currently defined resources. Mineralization also continues to be open to the north of this latest intersection, and also at depth and towards the surface.

This hole did not intersect the Eastern Lodes owing to technical difficulties. Diamond drilling continues with one rig dedicated towards identifying extensions to the Cosmo mineralization in both the Eastern and Western Lodes.

Hole GFG001W1 was a wedge hole from (previously released) hole GFG001 and was completed as part of the infill drilling program which is continuing with one dedicated diamond drill. The objective of this program is to upgrade the confidence level of the resources and to increase overall reserves. Initially the focus has been on the area of inferred resources of the Eastern Lodes mineralization in order to upgrade a significant quantity to measured and indicated resources (Figure 3). Hole GFG001W1 intersected the Eastern Lodes mineralization approximately 80 metres vertically above GFG001. Two principal intersections were obtained including 4.3 g/t Au over 15.4 metres (true width 9.0 metres) and 3.3 g/t Au over 7.5 metres (true width 5.0 metres). This hole is significant since, in conjunction with hole GFG001, it further demonstrates the continuity of the inferred resources at depth, and therefore the ability to upgrade some of these resources into the indicated category. In addition these two holes illustrate that mineralization is still open at depth.

In releasing these results, President and CEO, Mike Hoffman, stated, "We are extremely excited by these new results as they demonstrate the continuity of the high grade Cosmo mineralization and the potential to significantly expand the resources. We have demonstrated that mineralization continues at least 400 metres further north than the current resources, and that it also remains open at depth and locally towards the surface. Crocodile Gold is still on target to commence underground production from Cosmo in the second half of 2011. Development of the access portal is expected to commence by the end of June 2010."

Table 1. Results of Current Drilling and Historic Drilling not Included in Resource Estimate

Hole #   Interval (m)   Grade (g/t Au)  
    From   To   Total   True Width      
GFG001W1   498.6   514.0   15.4   9.0   4.3  
    530.5   538.0   7.5   5.0   3.3  
CP03W1   675.7   691.5   15.8   12.7   4.9  
including   675.7   680.5   4.8   3.9   11.1  

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 technical information and data included in this press release.

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

Results are based on 50g fire assays.

Face sampling reverse circulation drilling (1m intervals).

All intersections are downhole intervals.

Downhole surveying by downhole camera.

Collar co-ordinates confirmed by survey pick-up

Quality control procedures included blasts of compressed air to clean jaw and roll crushers between samples, a barren flush of river sand to clean bowls in between samples, laboratory duplicate samples undertaken at a rate of 1 in 10 and the insertion of NAL internal standards to monitor performance.

About Crocodile Gold

Crocodile Gold is a Canadian company with the Howley and Brocks Creek operating gold mines in the Northern Territory of Australia and a land package of over 3,500km2. Crocodile Gold announced its first gold pour in December 2009 at its Union Reefs mill, started development work at the Tom's Gully underground mine in Q1 2010 and has commenced activities at Cosmo to prepare it for underground development beginning in mid-2010 with full production expected by the end of 2011. Crocodile Gold has two mills, including the 8,000 tonne per day Union Reefs Mill and the 800 tonne per day Tom's Gully mill. Crocodile Gold has 3.09 million ounces of NI 43-101 compliant measured and indicated resources (42.9 million tonnes at an average grade of 2.3 g/t gold) and 1.94 million ounces of inferred resources (26.7 million tonnes at an average grade of 2.3 g/t gold) (See Management Information Circular dated October 5, 2009 and Crocodile Gold Press Releases dated September 8, 2009 and January 25, 2010). The Company has an aggressive exploration program in place and is drilling on several key properties. There are numerous exploration targets that the Company is prioritizing.

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 the figures accompanying this news release, please visit the following link: http://media3.marketwire.com/docs/CRK0414S.pdf

Contact Information

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