Crocodile Gold Corp.
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FRANKFURT : XGC
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Crocodile Gold Corp.

July 08, 2010 07:45 ET

Crocodile Gold Continues to Extend Howley Mineralization-Up to 13.36 g/t Au Over 5 Metres in Hole HSRC142 Within a Larger Mineralized Envelope of 1.82 g/t Au Over 40 Metres

TORONTO, ONTARIO--(Marketwire - July 8, 2010) - Crocodile Gold Corp. (TSX:CRK)(OTCQX:CROCF)(PINK SHEETS:CROCF)(FRANKFURT:XGC) ("Crocodile Gold" or the "Company") is pleased to announce the latest reverse circulation drill results from its Howley project in the Northern Territory of Australia (refer to Figure 1 below for location map). The project is currently the site of an ongoing reverse circulation drill program, which is part of the exploration program being conducted on the Company's extensive landholdings in the Northern Territory.

Highlights of these drill results are:
 
  • Near surface mineralization of 8.93 g/t Au over 6 metres in hole HSRC014;

  • Numerous wider mineralized intersections down dip from existing resources in hole HSRC150 with 5.02 g/t Au (uncut) and 4.78 g/t Au (cut) over 9 metres, in hole HSRC142 with 13.36 g/t Au (uncut) and 7.46 g/t Au (cut) over 5 metres, in hole HSRC151 with 2.44 g/t Au over 7 metres and in hole HSRC147 with 22.7 g/t Au (uncut) and 5.81 g/t Au (cut) over 9 metres;

  • Higher grade intercepts continue to be intersected on the east anticlinal limb of mineralization with up to 12.17 g/t Au over 2 metres in hole HSRC127 at a vertical depth of approximately 24 metres;

  • Mineralization continues to be intersected in the West Zone Area with up to 5.60 g/t Au over 6 metres in hole HSRC336 at approximately 40 metres below surface;

  • Mineralization extended more than 600 metres north of existing resources with 6.14 g/t Au over 2 metres in hole HSRC238; and

  • Mineralization remains open to the north, south, west and at depth.

The Howley mineralization occurs within an anticlinal structure that is the southern part of a more than 25 kilometre mineralized system within the Company's tenements and with existing shallow NI 43-101 compliant resources located along this entire trend. The Howley open pit is located immediately north of the Cosmo pit with mineralization present more than 5 kilometres to the north of Cosmo. The majority of work to date at Howley has focused on the west limb of the anticline which is also the location of the majority of the current known resources. The majority of previous drilling and known resources have extended less than 100 metres below surface, and drill testing the extent of mineralization in all directions including extensions at depth are the main focus of the existing drill program at Howley.

Crocodile Gold is pleased to report that these current drill results continue to confirm that mineralization is present in several key areas as previously reported (refer to Crocodile Gold press releases dated January 14, 2010 and May 3, 2010). These areas include:

  1. Mineralization at depth beneath existing resources;
  2. Mineralization in areas of no existing resources and minimal drilling;
  3. Higher grade mineralization on the east anticlinal limb;
  4. Further mineralization in the West Zone Area; and
  5. Potential upgrade of mineralization within existing pit shells.

Area 1: Mineralization at depth beneath existing resources

These results demonstrate that mineralization exists down dip of current resources as shown in hole HSRC150 with 5.02 g/t Au (uncut) and 4.78 g/t Au (cut) over 9 metres, a higher grade intercept within a zone of mixed mineralization and waste of 1.58 g/t Au over 47 metres (refer to Figure 2 below for a plan view of recent Howley drill hole collars). The majority of current resources at Howley are less than 100 metres below surface, and as part of the current drill program, Crocodile Gold drilled several holes to vertical depths beyond 200 metres to continue to test for mineralization at depth. Some higher grade intercepts were encountered at depth including 13.36 g/t Au (uncut) and 7.46 g/t Au (cut) over 5 metres in hole HSRC142, a higher grade intercept within a zone of mixed mineralization and waste of 1.82 g/t Au over 40 metres, and 22.7 g/t Au (uncut) and 5.81 g/t Au (cut) over 9 metres in hole HSRC147. Hole HSRC151 intersected 2.44 g/t Au over 7 metres. Mineralization continues to remain open at depth.

Area 2: Mineralization in areas of no existing resources and minimal drilling

As part of these current results, mineralization has been intersected more than 600 metres north of the existing resources and 100 metres north of mineralization found in previously reported drill results (refer to Crocodile Gold press release dated May 3, 2010). In the area between approximately 6000N to 6600N, no resources have been defined due to lack of adequate drilling to calculate a resource (refer to Figure 2). Hole HSRC238 intersected 6.14 g/t Au over 2 metres 600 metres north of the existing resources. Additional intersections in this area include 1.78 g/t Au over 6 metres in hole HSRC232 and 4.06 g/t Au over 5 metres in hole HSRC237.

Area 3: Higher grade mineralization on the east anticlinal limb

The majority of historical exploration at Howley has focused on the west limb of the anticlinal structure, at the location of the bulk of existing resources. The east limb has previously received little attention, and Crocodile Gold has been drilling on this limb and has been successful in intersecting higher grade mineralizaton, as previously reported (refer to Crocodile Gold press release dated May 3, 2010). As part of the current program, hole HSRC127 intersected 12.17 g/t Au over 2 metres at approximately 24 metres below surface, continuing to confirm that higher grade mineralization is present on the east limb.

Area 4: Further mineralization in the West Zone Area

One objective of this drill program is to better define the West Zone Area and the extent of the mineralization. Crocodile Gold identified the West Zone Area in January 2010 and has made this area a priority with the goal of possibly extending the existing open pit located to the east of this area. Mineralization continues to be intersected in this region. For example, hole HSRC336 intersected 5.6 g/t Au over 6 metres at a depth of approximately 40 metres below surface. In addition, hole HSRC264 intersected 3.38 g/t Au over 3 metres.

Area 5: Potential upgrade of mineralization within existing pit shells

Several holes intersected mineralization within the existing pit shells near surface and should assist in potentially upgrading the existing resource categories. Hole HSRC014 intersected 8.93 g/t Au over 6 metres only a few metres below surface. Some wider intervals were also intersected including 1.81 g/t Au over 15 metres in hole HSRC084 and 1.64 g/t Au over 11 metres in hole HSRC078.

Summary

In releasing this information, Crocodile Gold's Chief Operating Officer, David Keough, commented, "Our exploration efforts at Howley have continued to demonstrate that Howley could be significantly larger than what is currently defined by the current resource estimate. This is one of our highest priority areas and we are actively drilling to further define the extent of mineralization. We continue to better understand the Howley mineralization as our drill program advances and we are pleased to report that the mineralization continues to remain open particularly to the west and north and at depth. The next phase of our drill program will focus on defining the extent and potential of the newly discovered ore lenses."

Table 1: Howley Project RC Drill Results
 
Hole ID   Grid Coordinates   Survey Data   Interval   Grade (g/t Au)
Hole ID   Local Easting   Local Northing   Azimuth   Dip   From (m)   to (m)   Interval (m)   Grade (g/t Au)
BHRC028   5405   7378   90   -60   5   7   2   1.26
  and           90   -60   44   46   2   1.05
HSRC014   5508   5548   90   -60   1   7   6   8.93
HSRC044   5310   5000   90   -60   163   166   3   1.00
  and           90   -60   206   213   7   1.67
  and           90   -60   233   235   2   1.05
HSRC049   5345   5400   90   -60   72   78   6   1.34
HSRC072   5115   4350   90   -60   25   37   12   1.07
  and           90   -60   44   47   3   1.79
  and           90   -60   98   101   3   0.78
  and           90   -60   113   118   5   1.32
HSRC078   5360   5500   90   -60   31   34   3   1.20
  and           90   -60   38   49   11   1.64
  and           90   -60   77   82   5   1.19
  and           90   -60   86   89   3   0.90
  and           90   -60   92   95   3   0.77
  and           90   -60   118   124   6   1.01
  and           90   -60   127   129   2   1.58
HSRC080   5460   5500   90   -60   3   7   4   0.88
  and           90   -60   11   15   4   1.05
HSRC083   5460   5550   90   -60   27   31   4   0.84
  and           90   -60   35   40   5   3.44
  and           90   -60   65   69   4   0.79
HSRC084   5360   5550   90   -60   37   52   15   1.81
  and           90   -60   85   90   5   1.65
  and           90   -60   127   130   3   1.47
HSRC100   5320   5900   90   -60   83   89   6   1.20
  and           90   -60   132   135   3   0.87
  and           90   -60   142   147   5   1.29
  and           90   -60   150   154   4   1.11
HSRC101   5410   5900   90   -60   19   41   22   1.02
  and           90   -60   107   114   7   1.50
HSRC102   5460   5900   90   -60   13   16   3   0.78
  and           90   -60   31   36   5   0.99
  and           90   -60   39   41   2   0.89
HSRC103   5510   5900   90   -70   14   16   2   1.93
  and           90   -70   25   27   2   1.25
HSRC105   5320   5950   90   -60   34   37   3   1.61
  and           90   -60   44   46   2   4.80
  and           90   -60   60   63   3   1.24
HSRC125   5690   5125   270   -60   139   143   4   1.85
HSRC126   5690   5200   270   -60   8   10   2   2.33
HSRC127   5690   5250   270   -60   27   29   2   12.17
HSRC128   5690   5125   270   -60   172   174   2   2.14
HSRC129   5768   5500   270   -60   205   207   2   0.81
HSRC141   5308   4902   90   -60   121   124   3   2.02
  and           90   -60   191   198   7   1.45
  and           90   -60   205   209   4   0.84
HSRC142   5309   4948   90   -60   11   15   4   0.86
  and           90   -60   20   23   3   1.05
  and           90   -60   45   47   2   1.16
  and           90   -60   193   233   40   1.82*
  including           90   -60   193   205   12   1.41
  including           90   -60   217   222   5   7.46*
  including           90   -60   228   233   5   2.44
HSRC144   5235   5000   90   -65   274   277   3   3.89
HSRC147   5310   5050   90   -65   21   23   2   1.31
  and           90   -65   52   54   2   1.16
  and           90   -65   225   234   9   5.81*
  and           90   -65   259   261   2   1.16
HSRC150   5320   5100   90   -60   220   267   47   1.58*
  including           90   -60   220   229   9   4.78*
  including           90   -60   241   247   6   2.33
  including           90   -60   262   267   5   2.58
  and           90   -60   288   290   2   5.21
HSRC151   5285   5150   90   -60   86   88   2   1.44
  and           90   -60   259   266   7   2.44
  and           90   -60   287   289   2   2.21
HSRC154   5350   5201   90   -60   61   65   4   1.10
  and           90   -60   269   271   2   2.29
HSRC155   5370   5250   90   -60   52   54   2   2.34
  and           90   -60   92   96   4   1.34
  and           90   -60   127   130   3   1.61
HSRC166   5412   4540   90   -60   44   46   2   1.67
  and           90   -60   51   55   4   1.36
  and           90   -60   72   78   6   1.44
HSRC180   5006   4458   90   -60   71   73   2   0.91
HSRC180A   5000   4460   90   -60   129   131   2   1.04
HSRC200   5402   4898   90   -60   4   15   11   0.86
HSRC225   5500   6600   90   -60   12   15   3   1.14
HSRC226   5250   6500   90   -60   48   50   2   2.50
HSRC228   5300   6400   90   -60   66   69   3   2.93
  and           90   -60   132   136   4   1.25
  and           90   -60   141   144   3   0.84
HSRC232   5292   6199   90   -60   66   68   2   0.97
  and           90   -60   156   162   6   1.78
HSRC233   5394   6199   90   -60   25   28   3   1.49
HSRC235   5241   6099   90   -60   182   185   3   1.62
HSRC235   5241   6099   90   -60   215   220   5   0.83
HSRC237   5362   5998   90   -60   69   71   2   1.00
  and           90   -60   76   84   8   1.52
  and           90   -60   167   172   5   4.06
HSRC238   5300   6600   90   -60   67   70   3   1.17
  and           90   -60   177   179   2   6.14
HSRC240   5367   6050   90   -60   54   58   4   1.08
  and           90   -60   62   71   9   1.53
  and           90   -60   79   84   5   1.22
  and           90   -60   142   146   4   1.62
HSRC241   5460   6050   90   -60   3   6   3   1.14
  and           90   -60   9   15   6   1.50
HSRC252   5220   4420   90   -64   169   174   5   0.95
HSRC254   5260   4420   90   -60   126   132   6   0.73
HSRC256   5300   4420   90   -60   154   157   3   1.05
HSRC257   5198   4372   90   -62   179   183   4   2.24
HSRC259   5238   4372   90   -62   135   142   7   1.32
HSRC262   5178   4332   90   -62   30   32   2   1.14
  and           90   -62   44   49   5   0.76
  and           90   -62   56   62   6   1.25
HSRC264   5218   4332   90   -62   4   8   4   2.69
  and           90   -62   142   145   3   3.38
HSRC266   5258   4332   90   -62   170   172   2   2.36
  and           90   -62   192   196   4   0.80
HSRC267   5158   4292   90   -60   34   40   6   0.96
  and           90   -60   179   183   4   1.42
HSRC269   5198   4292   90   -62   26   28   2   0.88
  and           90   -62   169   172   3   0.88
  and           90   -62   190   192   2   1.01
HSRC293   5198   3892   90   -63   10   14   4   1.04
  and           90   -63   25   32   7   1.31
HSRC295   5278   3892   90   -63   69   72   3   1.05
HSRC321   5198   4212   90   -65   126   130   4   1.47
HSRC331   5027   4401   90   -65   30   33   3   0.92
  and           90   -65   142   144   2   0.82
  and           90   -65   160   167   7   0.85
HSRC332   5047   4401   90   -65   7   12   5   0.67
  and           90   -65   73   77   4   1.52
  and           90   -65   144   151   7   1.07
HSRC335   5017   4425   90   -65   68   72   4   1.70
  and           90   -65   166   170   4   0.87
HSRC336   5036   4425   90   -64   42   48   6   5.60
  and           90   -64   88   90   2   0.99
HSRC337   5080   4529   90   -60   9   12   3   1.55
  and           90   -60   50   52   2   0.84
  and           90   -60   118   121   3   1.02
  and           90   -60   148   152   4   0.74
HSRC339   5049   4561   90   -65   79   82   3   0.82
  and           90   -65   100   104   4   1.30
  and           90   -65   108   117   9   0.72
  and           90   -65   172   174   2   1.16
HSST063   5900   5024   270   -60   0   3   3   0.88
*Results have had top cut of 33 g/t applied

About Crocodile Gold

Crocodile Gold is a Canadian company with the Howley and North Point open pit mines and the Brocks Creek underground mine in the Northern Territory of Australia. Crocodile Gold announced its first gold pour in December 2009 at its Union Reefs mill, started development work at the Tom's Gully underground mine for expected production in late Q3 2010 and has commenced underground development at Cosmo with full production expected by mid-2011. Crocodile Gold has two mills, including the 2.4 mtpy Union Reefs mill and the 240,000 tpy Tom's Gully mill. Crocodile Gold has 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 Annual Information Form dated March 31, 2010 and Crocodile Gold press releases dated September 8, 2009 and January 25, 2010). The Company has an aggressive exploration program in place and is drilling on several key properties on its land package of over 2,500km2.

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 confirmed the technical information and data included in this press release.

Drill samples were assayed at Northern Australian Laboratories (NAL).

Results are based on 50g fire assays.

Face sampling reverse circulation drilling (1m intervals).

Average grades have been determined from wider anomalous zones containing higher grade zones which average >0.7 g/t Au and have been top cut to a maximum grade of 33 g/t, over 2m minimum width and maximum of 2m internal dilution.

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.

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 and Figure 2", please visit the following link:

http://media3.marketwire.com/docs/crkmap-708.pdf

Contact Information

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