Crocodile Gold Corp.
TSX : CRK

Crocodile Gold Corp.

November 25, 2009 08:30 ET

Crocodile Gold Intersects High Grades and New Thick Zone at Tom's Gully Up to 27.24 g/t Gold Over 1.8m and 6.9 g/t Gold Over 13.2m Higher Grades and Greater Widths Than Historic Intersections

TORONTO, ONTARIO--(Marketwire - Nov. 25, 2009) - Crocodile Gold Corp. (TSX:CRK) ("Crocodile Gold" or the "Company") today announces details of the initial results from its ongoing exploration program consisting of 2,700 metres of surface diamond drilling at the Company's 100% owned Tom's Gully underground mine in the Northern Territory, Australia (Figure 1). Background information on this program and the Tom's Gully mine were provided recently (Crocodile Gold News Release dated November 23, 2009).

Highlights of the latest results include high grade intersections of up to 27.2 g/t gold over 1.8 metres in TGDDH004, 12.1 g/t gold over 2.2 metres in TGDDH015, and 12.7 g/t gold over 3.8 metres and 7.6 g/t gold over 4.8 metres in TGDDH008 within a wider interval of 6.9 g/t gold over 13.2 metres. All intersections are approximate to true thickness.

In making this announcement, Crocodile Gold's President and CEO, Mike Hoffman stated, "We are extremely pleased with these initial results at Tom's Gully, as they substantially confirm the current model, provide significant high grade surprises and confirm the potential for higher grade mineralization at depth. The grades also exceed some of the higher historic grades (see Crocodile Gold News Release dated November 23, 2009). The next phase of drilling at Tom's Gully will focus on additional infill drilling in the higher grade areas at depth with the goal of deepening the decline to accelerate development of this area."

The mine is located 100 kilometres east-southeast of the city of Darwin within the Company's extensive land package in the Northern Territory. The ongoing exploration is part of the previously announced (Crocodile Gold News Release dated November 12, 2009) US$8.4 million exploration program being conducted by the Company in the Northern Territory.

Summary of Results

Since acquiring its Northern Territory assets, Crocodile Gold has conducted a detailed reinterpretation of the resource model for Tom's Gully. This work indicated that additional more closely spaced definition drilling was required to provide added confidence in the model prior to the commencement of mining. As a result, the initial focus of diamond drilling has been to increase drill density in the upper areas of the mine where initial mining will take place.

The results are summarized in Table 1 below. In general these results confirmed the model with some holes returning higher than expected grades. The net result is increased confidence in the orebody and therefore a likely ability to upgrade the resource categories and potentially increase the amount of reserves, and provide greater certainty for mine planning, thus achieving the goal of the program. Locations of intercepts are indicated in Figure 2.

Of particular interest are the high grade intersections in TGDDH008 which returned 12.7 g/t gold over 3.8 metres and 7.6 g/t gold over 4.8 metres within a wider interval which averaged 6.9 g/t gold over 13.2 metres. These intersections are significant for two reasons. Firstly they occur in the sediments overlying the vein and may represent a new style of mineralization not previously recognized, and secondly because they are in an area predicted by the model to be relatively low grade.

Hole TGDDH004 which was drilled into the deeper parts of the resource intersected a significant interval of 27.24 g/t gold over 1.8 metres. This appears to confirm what the model had previously predicted, that the orebody is of higher grade and consistency at depth. The next phase of drilling will be focused on more closely spaced drilling in this area to provide greater confidence in the model in order to justify extending the current decline and enabling access to the highest grade ore as soon as possible once mining begins (Figure 2).



Table 1: Results of Initial Drilling at Tom's Gully

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Hole No. From (m) To (m) Interval (m) Grade (Au g/t) True Width (m)
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TGDDH004 273.7 275.5 1.8 27.24 1.8
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TGDDH008 219.3 223.2 3.8 12.7 3.8
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and 224.7 229.5 4.8 7.6 4.8
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within 218.5 231.7 13.2 6.90 13.0
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TGDDH009 238.6 239.7 1.2 7.27 0.9
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TGDDH010 231.9 232.3 0.4 0.35 0.4
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TGDDH011 224.5 225.0 0.4 1.03 0.4
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TGDDH013 244.8 245.1 0.4 9.07 0.3
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TGDDH014 219.7 221.8 2.1 6.28 3.0
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TGDDH015 250.1 252.3 2.2 12.05 2.2
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TGDDH016 241.3 242.6 1.3 9.43 1.2
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TGDDH017 237.8 238.8 1.0 3.58 1.0
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TGDDH018 235.2 235.7 0.5 0.50 0.5
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TGDDH019 260.8 261.1 0.3 0.80 0.3
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TGDDH020 258.1 258.5 0.4 0.53 0.4
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TGDDH021 243.2 244.0 0.8 3.03 0.8
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Because of its predictable nature and stratigraphic position, it is believed there is considerable potential to increase the resources at Tom's Gully relatively quickly. Assuming success with the definition drilling, additional drilling will be targeted towards exploration for extensions of mineralization down plunge and along strike (i.e. either side of the Crabb and Williams Fault) in addition to exploring for potential parallel mineralized zones vertically below the known mineralization. The potential for increasing resources is particularly significant given the fact that the Tom's Gully mine has a fully permitted 800 tonne per day mill and associated tailings facility.

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 operates 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), Figure 2 (Tom's Gully Drillhole Location Plan) and Figure 3 (Tom's Gully Cross Section), please visit the following link: http://media3.marketwire.com/docs/crocodile_gold_maps.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
    info@crocgold.com
    www.crocgold.com