Crocodile Gold Corp.

Crocodile Gold Corp.

August 31, 2011 07:00 ET

Crocodile Gold Completes Major Airborne Geophysical Survey and Identifies Numerous New Exploration Targets

TORONTO, ONTARIO--(Marketwire - Aug. 31, 2011) - Crocodile Gold Corp. (TSX:CRK)(OTCQX:CROCF)(FRANKFURT:XGC) ("Crocodile Gold" or the "Company") is pleased to announce that a major airborne geophysical survey consisting of more than 4,000 line kilometres over priority prospective areas has been completed on schedule. The airborne survey used Geotech's VTEM helicopter-borne system to scan Crocodile Gold's extensive tenements in the Northern Territory of Australia. Southern Geoscience of Perth Australia was retained to ensure quality control, commutation, and detailed interpretation of the results.

Mark Edwards, General Manager of Geology and Exploration, commented: "The VTEM survey that we have completed is a state of the art geophysics system what provides deep penetrating information on the ground surveyed. It is used worldwide as a fundamental exploration tool to define geophysical signatures of mineral deposits and their hosts. Crocodile Gold selected the VTEM system to identify anomalies that will indicate the potential to discover further gold and base metal deposits within our land package (Figure 1). For example, it is known that the Cosmo deposit will produce a relatively strong electromagnetic (EM) signature with a coincident magnetic anomaly. The recently completed survey has clearly defined the hosting geological environment and numerous newly identified Cosmo "look-a-like" targets that will need investigation by our exploration team".

The base metal environment represented by the Iron Blow and Mt. Bonnie deposits were also tested. Both deposits were clearly defined by the survey and a number of other newly defined VTEM anomalies lying in a similar stratigraphic position were identified. Further exploration investigation will be carried out for their Base and Precious (Gold/Silver) metal potential.

Five separate areas were flown within the Burnside Project area close to existing operational infrastructure and a significant part of the Moline Property (located 60 kilometres from the Union Reefs Mill) was also tested with the VTEM system. Flight lines for these surveys are show in Figure 2 and Figure 3. The known gold and base metal deposits and hosting geology/structures of the Moline area were not clearly understood from historic data. The VTEM survey clearly defined the local stratigraphy and the exploration team will use this information to focus its efforts in defining additional significant gold mineralization in the area.

At Maud Creek, the initial planned survey area was expanded after the Company applied to significantly increase its land position in this region. Crocodile Gold now has a better understanding of the underlying geology and structures which host the significant Maud Creek gold deposit. The Company is currently gearing up its exploration efforts in this area in order to apply the knowledge gained from the VTEM survey and determine if other potentially significant gold deposits exist in this region.

Crocodile Gold's exploration group has started initial ground investigation of a number of the VTEM anomalies generated from the survey. A land-based mapping and geochemical investigation program is underway with initial results are expected in the near future. This work will continue for the rest of the year.

Bill Nielsen, Crocodile Gold's Vice President of Exploration stated: "I am very pleased with the results we have obtained from the airborne survey. The information will be very valuable in assisting with our ongoing exploration programs to explore our vast exploration asset base. There will be many months of ground follow-up work required to assess the many attractive and varied targets produced by the VTEM survey. We fully expect that future exploration success will result from this work".

The Company has recently completed a thorough strategic review of its extensive exploration ground holdings and growth strategy in order to focus exploration and development activities--including permitting. Additionally, an assessment of the previously identified historical resources (numbering over 20) has identified many deposits/targets that warrant immediate drilling. The quality and quantity of exploration targets generated near the Company's active mining areas, which were also identified to be within close proximity to the Union Reefs processing facility, has enabled the Company to rationalize its extensive tenement holdings in order to focus on high priority exploration and development projects. These prioritized projects hold the highest ranked exploration potential in management's view and are located near Crocodile Gold's operational center of gravity or near potential development projects (Maud Creek).

As part of the program to focus exploration on high potential exploration and development targets, the Company has reviewed all assets and identified non-core holdings. The Mt. Bundy tenements which host the Tom's Gully and Rustlers Roost deposits have been determined to not be a priority to Crocodile Gold and the company has elected to investigate divesting of these properties in order to clearly focus their attention on their land positions identified as priorities.

About Crocodile Gold

Crocodile Gold is a Canadian company with operating gold mines in the Northern Territory of Australia and a land package of over 2,700 km2. Crocodile Gold is currently mining from the Howley open pit mine. The Company commenced mining in November 2009 and announced its first gold pour in December 2009 at its Union Reefs Mill. The Company is currently developing the Cosmo underground mine. Ore is currently processed at the 2.4 million tonne per year Union Reefs Mill. Crocodile Gold has 3.175 million ounces of NI 43-101 compliant Measured and Indicated mineral resources (51.85 million tonnes at an average grade of 1.9 g/t gold) and 2.14 million ounces of Inferred mineral resources (36.35 million tonnes at an average grade of 1.8 g/t gold) (see Annual Information Form dated March 31, 2010 and Crocodile Gold press releases dated September 8, 2009 and January 25, 2010). The Company has an exploration program in place and is drilling on several key properties on its expansive land package. Crocodile Gold's main drilling focus is currently on the Cosmo/Howley corridor and the Union Reef project area. Additional drilling will take place in the near future on its base/precious metal assets as well as the Maud Creek deposit.

Qualified Person

Mark Edwards, Geology Manager of Crocodile Gold Australia Operations is a "qualified person" as such term is defined in National Instrument 43-101 and has reviewed and approved the technical information and data included in this press release.

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.

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Contact Information

  • Crocodile Gold Corp.
    Rob Hopkins
    Manager, Investor Relations