Crocodile Gold Corp.
TSX : CRK

Crocodile Gold Corp.

November 23, 2009 08:30 ET

Crocodile Gold Provides Background on Tom's Gully Historic High Grade Results Include 21.3 g/t Au Over 1.02 Metres and 16.5 g/t Au Over 1.70 Metres

TORONTO, ONTARIO--(Marketwire - Nov. 23, 2009) - Crocodile Gold Corp. (TSX:CRK) ("Crocodile Gold" or the "Company") today provides background information on its Tom's Gully project, in the Northern Territory of Australia (Figure 1). The project is currently the site of an ongoing 2,700 metre surface diamond drill program which is part of the previously announced (Crocodile Gold, November 12, 2009 News Release) US$8.4 million exploration program being conducted on the Company's extensive landholdings in the Northern Territory.

Background

The Tom's Gully underground mine is located 100 kilometres east southeast of the city of Darwin (Figure 1). It has historically produced approximately 100,000 ounces of gold at a grade of 9.4 g/t gold from open pit, to a depth of approximately 100 metres (Figures 2 and 3). After completion of the open pit, limited underground production took place via decline access. Immediately adjacent to the mine is an operational 800 tonne per day mill. Crocodile Gold plans to restart underground production at the mine in the first quarter of 2010.

Mineralization occurs in planar quartz sulphide veins which dip very shallowly (approximately 7 degrees) south. The veins are narrow with an average thickness of 1.2 metres, but are high grade, with historic drill intersections including, for example, 21.3 g/t gold over 1.02 metres and 16.5 g/t gold over 1.70 metres. Other examples of historic intersections are provided in Figure 2. Locally, stacking of veins can increase the thickness of mineralization to as much as 3 metres. Reserves and resources (Table 1) are currently confined between two faults (the Crabb and William) and extend over a down-dip length of approximately 1.5 kilometres to a vertical depth of approximately 300 metres. Mineralization remains open at depth (Figures 2 and 3).

In addition, potential is believed to exist for mineralization along strike on the other side of the Crabb and William faults. For example, two high grade historic intersections of 19.4 g/t gold over 1.57 metres and 11.4 g/t gold over 2.56 metres are located 200 metres west of the current resource limits, and are adjacent to, and to the west of, the Williams Fault. Other high grade intersections lie to the west of the resource boundary but between the two faults. In addition to the east of the area of existing workings numerous shallow intersections of gold mineralization have been encountered, with up to 3.5 g/t gold over 4.00 metres. Conceptually, it is also believed the possibility exists to find additional parallel mineralized structures underneath the current mineralization.

In releasing this information, President and CEO, Mike Hoffman, stated, "The Tom's Gully underground mine is at the beginning of its life. We believe that with the correct preparation this has the potential to be a long term solid producer for Crocodile Gold which represents an attractive and predictable exploration target."



Table 1: Tom's Gully 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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Tom's Gully 7.0 370,000 8.3 99,000
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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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Tom's 496, 175, 184,
Gully 3.65 900 11.0 100 3.65 400 11.4 67,500
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Note: Resources include reserves


Objective of Current Drill Program

Since acquiring its Northern Territory assets, Crocodile Gold has conducted a detailed reinterpretation of the resource model. 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 model indicates that the stronger areas of mineralization are further down dip (Figure 2). Upon completion and interpretation of the drilling from the upper levels, drilling will continue in the deeper levels with the goal of providing sufficient confidence to justify the extension of the decline in order to access the higher grade portions of the orebody as soon as possible.

Because of its predictable nature and stratigraphic position, it is believed there is considerable potential to increase the resources relatively quickly. Assuming success with the definition drilling, additional drilling will be targeted towards exploration for extensions of mineralization down dip and along strike (i.e. either side of the Crabb and Williams Fault) in addition to exploring for potential parallel mineralized zones underneath the current veins.

Qualified Person

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

Historic drill results were assayed at Northern Australian Laboratory (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 News 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 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.

To view Figure 1 - Crocodile Gold Northern Territory Location Map, please visit the following link: http://media3.marketwire.com/docs/croc_gold_figure_1.pdf

To view Figure 2 - Tom's Gully Drillhole Location Plan, please visit the following link: http://media3.marketwire.com/docs/croc_gold_figure_2.pdf

To view Figure 3 - Tom's Gully Cross Section, please visit the following link: http://media3.marketwire.com/docs/croc_gold_figure_3.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