Crocodile Gold Inc.

Crocodile Gold Inc.

September 02, 2009 11:30 ET

Crocodile Gold Intersects 55.1 Metres Grading 3.2 g/t Gold, 8.4% Zinc, 3.1% Lead and 318 g/t Silver at Iron Blow Project in the Northern Territory, Australia

TORONTO, ONTARIO--(Marketwire - Sept. 2, 2009) - Crocodile Gold Inc. today announces drill results from its polymetallic Iron Blow project in the Northern Territory of Australia. The results are from an exploration drilling program completed by GBS Gold International Inc. ("GBS Gold") in June and August 2008 which included six diamond drill holes totalling 1,803.3 metres. Results from holes IBDH001 and IBDH002 were released by GBS Gold on September 4, 2008. The remaining results were not released by GBS Gold. The drill program was completed to test the down-dip continuity of the mineralization and to verify historical data. A summary of the drill results is shown in Table 1 below.

Highlights from the assays include:

- 55.1 metres at a grade of 3.2 g/t Au, 318 g/t Ag, 8.4% Zn, 0.3% Cu and 3.1% Pb

- 13.4 metres at a grade of 2.7 g/t Au, 158 g/t Ag, 9.7% Zn, 0.3% Cu and 1.3% Pb

- 3.9 metres at a grade of 6.1 g/t Au, 268 g/t Ag, 14.0% Zn, 0.6% Cu and 2.2% Pb



Table 1: Iron Blow Drill Results

----------------------------------------------------------------------------
Drillhole From To Interval True Au Ag Zn Cu Pb
(m) (m) Width Width (g/t) (g/t) (%) (%) (%)
(m) (m)
----------------------------------------------------------------------------
IBDH001 117.0 129.0 12.0 8.9 1.0 9 2.0 0.2 0.1
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includes 123.0 129.0 6.0 4.0 1.2 19 6.3 0.2 0.1
----------------------------------------------------------------------------
IBDH001 147.0 150.0 3.0 2.4 6.9 3 tr tr tr
----------------------------------------------------------------------------
IBDH002 102.0 115.0 13.0 11.0 2.8 83 4.2 0.2 0.7
----------------------------------------------------------------------------
includes 111.1 115.0 3.9 3.6 6.1 268 14.0 0.6 2.2
----------------------------------------------------------------------------
IBDH002 158.6 180.5 21.9 18.0 1.6 9 0.1 0.2 0.1
----------------------------------------------------------------------------
IBDH003 155.0 172.4 17.4 12.0 1.8 82 2.7 0.0 0.7
----------------------------------------------------------------------------
IBDH003 200.8 218.0 17.2 13.3 2.0 26 1.0 0.3 0.2
----------------------------------------------------------------------------
IBDH003 231.0 236.1 5.2 4.5 0.7 17 2.6 0.2 0.1
----------------------------------------------------------------------------
IBDH004 85.3 87.0 1.7 1.4 3.5 490 4.3 0.1 2.5
----------------------------------------------------------------------------
IBDH004 114.7 137.1 22.4 14.6 0.9 3 1.7 0.7 0.1
----------------------------------------------------------------------------
IBDH005 195.8 226.5 30.7 24.1 1.5 35 3.2 0.3 0.2
----------------------------------------------------------------------------
IBDH006 94.9 150.0 55.1 35.7 3.2 318 8.4 0.3 3.1
----------------------------------------------------------------------------
IBDH006 155.0 159.0 4.0 3.7 1.6 2 0.1 0.0 0.1
----------------------------------------------------------------------------
IBDH006 189.1 202.5 13.4 9.6 2.7 158 9.7 0.3 1.3
----------------------------------------------------------------------------
IBDH006 228.3 239.0 10.7 7.3 1.1 17 0.1 tr 0.2
----------------------------------------------------------------------------


The location of the Iron Blow project can be viewed in Figure 1 below. A drill plan, longitudinal section, and cross sections can be viewed in Figures 2-6 below.

Mike Hoffman, President and CEO of Crocodile Gold commented, "These drill results are encouraging as they show the potential for different types of gold mineralization on our Northern Territory tenements which currently contain over 4.6 million ounces of gold resources. We are in the final stages of preparing an initial resource estimate at Iron Blow which should be released shortly. We are looking forward to the completion of the proposed transaction with Franc-Or so we can continue to provide value to shareholders with the further development of projects such as Iron Blow."

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. Iron Blow has had historical small scale underground and open pit production.

The mineralization appears to occur as multiple parallel massive sulphide lodes. Additional drilling will seek to further define the nature and extent of the mineralization.

NOTE: To view Figures 1-6, please visit the following link - http://media3.marketwire.com/docs/croc0902.pdf

Quality Assurance and Quality Control Procedures

Gold results are based on 50 gram fire assays. All results are from half-core HQ diameter diamond drilling (variable intervals). All intersections are down hole intervals. All deviations have been verified by down hole survey instruments. Collar co-ordinates are confirmed by survey pickup.

The primary assay laboratory is North Australia Laboratories in Pine Creek, Northern Territory. Laboratory site reviews were undertaken during the period of the drilling campaign. Assay QA/QC procedures in place at the time of program involved the use of assay standards (sourced from reputable suppliers and cross-checked through umpire laboratories), blanks and barren quartz flushes. A third party "umpire" laboratory is typically used to cross-check and validate approximately 5% of the assay results. However, the full procedures QA/QC work relating to the assays reported in this news release is not yet fully complete in that umpire laboratory checks have not yet been completed. Sample coarse rejects are retained and approximately 5% of samples are re-submitted for further assay verification. All sample pulps and half-core are retained at site.

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 (which includes the Burnside, Union Reefs, Pine Creek, Maud Creek and Moline projects) 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 Cosmos Deep and Maud Creek 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, 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 September 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.

Contact Information

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