Crocodile Gold Corp.

Crocodile Gold Corp.

February 25, 2010 08:30 ET

Crocodile Gold Intersects 5.15 g/t Au Over 22m at Cosmo-Doubles Strike Length and Indicates Potential at Depth-Resource Potentially Larger

TORONTO, ONTARIO--(Marketwire - Feb. 25, 2010) - Crocodile Gold Corp. (TSX:CRK)(OTCQX:CROCF)(FRANKFURT:XGC) ("Crocodile Gold" or the "Company") is pleased to announce the initial 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 a diamond drill program which is part of the previously announced US$8.4 million exploration program being conducted on the Company's extensive landholdings in the Northern Territory (refer to Crocodile Gold press release dated November 12, 2009).

Highlights of these initial drill results are:

-- Hole GFG01 intersected 5.15 g/t Au over 22.33 metres within the
previously estimated inferred mineral resource and below the previously
indicated lower limit of the 4.00 g/t Au contour;

-- Hole CP005 intersected the Cosmo mineralization approximately 400 metres
north of the current resource outline;

-- Mineralization encountered in CP005 is the deepest intersection to date
of the Cosmo mineralization - at a vertical depth of approximately 850
metres below surface;

-- CP005 mineralization was contained within an 82 metre long interval that
contained narrower higher grade sections including 3.64 g/t Au over 3.00
metres, and 2.64 g/t Au over 2.46 metres separated by lower grade

-- A number of historic high grade intervals have been identified between
hole CP005 and the northern limit of the existing resource, including
50.00 g/t Au over 3.00 metres, 6.12 g/t Au over 14.00 metres, and 7.54
g/t Au over 3.00 metres. These intersections are not included in the
current resource;

-- Hole CP001 was drilled 100 metres to the north of the current resource
and intersected what the Company believes is the Cosmo mineralization
over a 91 metre interval that contains a number of higher grade

Hole GFG01 is the first drill hole of the infill program designed to increase the confidence level in the current resources and increase the amount of reserves. The Company believes that the significance of the high grade intersection in this hole is that it is within the inferred resource and indicates potential to upgrade a portion of the estimated inferred resource to the indicated category. In addition it is vertically below the lower limit of the 4.00 g/t Au contour, suggesting the potential to extend high grade mineralization at depth.

Holes CP001 and CP005 were the first two holes of the program designed to test for lateral extensions of the Cosmo mineralized horizons to the north. CP001 and CP005 were targeted to intersect the Cosmo mineralization 100 and 400 metres north of the current resource, respectively. Based on historic drill results, the Cosmo mineralization appears to plunge steeply northward (Figure 2). The results for CP001, CP005 and the historic drill holes not included in the resource, are highlighted in Table 1 and Figure 2.

In releasing these results, President and CEO, Mike Hoffman, stated, "We are encouraged by both, these new results, and the identification of past results outside of the current resource. We believe that the new results indicate that the high grade core of the Cosmo mineralized system is still open at depth. We also believe that the results indicate that the mineralized system has strike extent in excess of 800 metres and remains open along strike and at depth. Outside of the resource area, the mineralization also potentially remains open up dip, with some particularly high grade intersections near surface including 50.00 g/t Au over 3.00 metres in hole GA041. These new results are comparable to others obtained within and around the existing estimated mineral resource. We are also intrigued and encouraged by the identification of numerous high grade intersections in historic holes, which were not included in the existing resource."

Crocodile Gold is adding a second diamond drill at Cosmo. The existing drill will continue to focus on testing for extensions of mineralization and the second drill is intended to focus on infill drilling. Crocodile Gold targets commencing underground production from Cosmo in the second half of 2011. Construction of the access portal is scheduled to commence by the end of June 2010.

The next phase of step-out drilling targets the area between CP001 and CP005 in a fan of diamond drill holes designed to test the likely plunge of higher grade mineralization (Figure 2). The Company has designed the next phase of the infill drilling to target the area up to 250 metres vertically below the intersection in hole GFG01.

Table 1: Results of Current Drilling and Historic Drilling not Included within Estimated Mineral Resource

Hole # Interval (m) Grade (g/t Au)
From To Total
GFG01(i) 564.20 586.53 22.33 5.15
CP001(i) 463.50 554.00 90.50 Mineralized Interval
542.50 545.00 2.50 3.59
551.50 554.00 2.50 2.05
CP005(i) 809.10 890.85 81.75 Mineralized Interval
862.90 890.85 27.95 1.35
826.20 828.80 2.60 3.75
862.90 865.90 3.00 3.64
885.30 890.85 5.55 2.46
CRD017 374.00 389.25 15.23 2.59
GA041 12.00 21.00 9.00 6.20
60.00 63.00 3.00 50.00
465.50 479.50 14.00 6.12
GA043 338.00 353.00 15.00 4.52
CRD020 498.00 501.00 3.00 7.54
559.00 566.41 7.41 1.92
584.30 594.60 10.30 1.92
696.90 701.50 4.60 4.25
GA51WR2 686.50 691.50 5.00 2.63
746.50 750.00 3.50 2.64
762.00 771.00 9.00 2.45
787.50 792.50 5.00 2.30

(i)Notes - holes in bold are from current program, others are historic drill
holes outside of current resource; the true width of CFG01 is
approximately 55% of the widths stated above and the true width of CP001
and CP005 is approximately 70% of the widths stated above

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 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 3.09 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 Burnside Project includes the Brocks Creek underground mine, the Howley open pit mine and several additional deposits along the Cosmo/Howley 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, CROCF on OTCQX and XGC on the Frankfurt 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 (NTD: needs to be updated to conform with the above). 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:

Contact Information

  • Crocodile Gold Corp.
    Michael Hoffman
    President and CEO
    Crocodile Gold Corp.
    Ashleigh Clelland
    Manager, Investor Relations