Crocodile Gold Corp.
TSX : CRK

Crocodile Gold Corp.

December 17, 2009 16:00 ET

Crocodile Gold Announces Uranium Drill Results Up to 12 Metres of 0.62% U3O8

TORONTO, ONTARIO--(Marketwire - Dec. 17, 2009) - Crocodile Gold Corp. (TSX:CRK) ("Crocodile Gold" or the "Company") today announces uranium drill results announced by its joint venture partner, Thundelarra Exploration Ltd ("Thundelarra") on December 16, 2009 on certain properties located 140 kilometres south of Darwin in the Northern Territory of Australia, known as the Thunderball uranium prospect ("Thunderball"). The location of Thunderball can be viewed in Figure 1 below. Crocodile Gold has an agreement with Thundelarra, signed in September 2007, in which Thundelarra has the right to explore for uranium on certain Crocodile Gold tenements while Crocodile Gold retains all other metal rights including precious metals and base metals. Thundelarra holds a 70% interest until development and must incur a minimum AUS$500,000 in exploration expenditures per year for the first three years and has the right to apply for a mining tenement on behalf of the joint venture. Crocodile Gold has a 30% free carried interest until development through the agreement with Thundelarra.

Highlights from the drill program include 12 metres grading 6,185 ppm U3O8 (0.62% U3O8) intersected in drill hole TPCDD028 from 161 metres down hole. The intercept consists of multiple shears mineralized with blebby disseminated pitchblende. Drill hole TPCDD028 was drilled to the north and down-plunge from the high grade intercepts reported in earlier drill holes TPCRC019 and TPCDD026 of 15 metres at 1.5% U3O8 and 11 metres at 3.4% U3O8, respectively (refer to Crocodile Gold Press Releases dated September 28, 2009 and November 9, 2009). Drill results are in Table 1 below.

Drill holes TPCDD027 and TPCDD030 tested the western margin of the prospect. The targeted structure hosts significant uranium levels in this area, although not as strongly mineralized as in the core. The most northerly hole, TPCDD030, also intersected well developed mineralization of 4 metres at 577 ppm U3O8 at a shallower depth, referred to as the Upper Zone. This is consistent with several other holes near the northern limit of current drilling and suggests the presence of a second lens of potentially economic mineralization.

The wet season has begun in the region and drilling has been suspended for the duration of the season. Eight holes totalling 1,570 metres have been drilled to date. Assay results remain outstanding from a further five drill holes.

During the wet season, geological and structural data from this year's drilling and extensive geophysical data acquired over the last few months will be compiled and interpreted. The output of this exercise will be used to plan 2010's drilling program, which is expected to be significantly more substantial. The 2010 program will seek to better define and extend high grade uranium mineralization at Thunderball together with extensive testing of other highly prospective targets within the Pine Creek project area.

Table 1: Thunderball Drill Results
Hole No Easting Northing Dip/Az From (m) To (m) Interval (m) U3O8 Zone
TPCDD027 772716 8501494 -85/310 161 163 2 755 ppm Lower
TPCDD028 772696 8501538 -70/131 161 173 12 6,185 ppm Lower
includes       161 162 1 2.4% Lower
TPCDD030 772696 8501538 -85/131 49 53 4 577 ppm Upper
and       192 200 8 513 Lower
includes       192 194 2 1,210 ppm Lower

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 technical information and data included in this press release.

Drill core was assayed at Amdel in Adelaide, Australia.

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 owns 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, Thunderball Uranium Prospect Location Map, please visit the following link: http://media3.marketwire.com/docs/crk1217.jpg.

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