Crocodile Gold Corp.
TSX : CRK
OTCQX : CROCF
FRANKFURT : XGC

Crocodile Gold Corp.

January 20, 2012 18:54 ET

Crocodile Gold Intersects 27.96 Grams Per Tonne Gold Over 2.05 Meters Below the Prospect Deposit at Union Reefs

Results From Continued Drilling at Crosscourse and Prospect Deposits Show Continuation of High Grade Mineralization

TORONTO, ONTARIO--(Marketwire - Jan. 20, 2012) - Crocodile Gold Corp. (TSX:CRK)(OTCQX:CROCF)(FRANKFURT:XGC) ("Crocodile Gold" or the "Company") is pleased to announce additional high grade intersections from drill holes completed at its Union Reefs Project beneath both the Prospect and Crosscourse deposits.

Highlights of these drill holes include:

Below the Crosscourse Deposit

  • 5.43 g/t Au over 2.45 metres in hole URNDD03b
  • 15.09 g/t Au over 1.8 metres in hole URNDD03b

Below the Prospect Deposit

  • 7.70 g/t Au over 3.1 metres in hole URNDD30W1
  • 4.83 g/t Au over 3.1 metres in hole URNDD30
  • 12.51 g/t Au over 3.28 metres in hole URNDD28
  • 27.96 g/t Au over 2.05 metres in hole URNDD28
  • 31.27 g/t Au over 0.7 meters in hole URNDD28W1

Crocodile Gold is currently drilling at the Prospect Deposit to vertical depths of up to 400 metres along a 500 metre strike length in order to confirm the continuity of the mineralization. This program has seen considerable success (see releases dated October 13, September 8, and August 23, 2011) and it is anticipated that a significant increase in resources will result once an infill drill program is completed. The intercepts at depths greater than 500 meters in hole URNDD03b are interpreted to be depth extensions of the West Lodes (See Fig. 4), a parallel structure to the E Lens. A Historic Resource* of 18,000 tonnes grading 14.6 g/t Au was previously estimated at the E Lens.

Drilling will continue in the Union Reefs area during the first half of 2012 with the focus to continue drilling the area below and between the Crosscourse and Prospect deposits (see figure 3). Crocodile Gold currently has two diamond rigs working to complete the next phase of drilling at the Union Reefs Project.

Chantal Lavoie, President of Crocodile Gold, states that "The belief of management that the past producing Union Reefs area has the potential to be one of the Company's future cash flow centers has been bolstered by these drill results. We believe that Crocodile Gold has significant near term organic growth prospects that suggest that the value of the Company is only beginning to be unlocked."

Past production from the Crosscourse open pit amounted to 13,036,535 tonnes averaging 1.7 g/t Au producing over 700,000 ounces of gold. Approximately 83% of the gold from the Union Reefs open pits came from the Crosscourse pit.

Past production from the Prospect Deposit open pit amounted to 411,994 tonnes grading 1.6 g/t Au to produce 21,242 ounces of gold.

Table 1: Union Reefs Drill Results

Hole_ID Location Local Grid Depth From To Width True Width Grade
East North RL (m) (m) (m) (m) (m) (g/t Au)
URNDD03b Crosscourse 5133.8 6797.8 1195.2 598.7 234.7 241.15 6.45 5.16 2.83
incl. 239.0 241.45 2.45 1.96 5.43
and 274.0 277.1 3.1 2.5 1.40
and 345.55 347.3 1.8 1.4 15.09
and 353.7 354.8 1.1 0.9 1.26
and 404.0 405.9 1.9 1.5 1.42
and 409.4 418.8 9.4 7.5 1.38
incl. 414.6 415.3 0.6 0.5 5.72
and 427.8
432.1
4.3
3.5
1.89
incl. 431.8 432.1 0.30 0.24 17.10
and 459.1 461.1 2.0 1.6 2.89
incl. 460.1 461.1 1.0 0.8 5.25
and 470.2 471.8 1.5 1.2 1.39
and 490.0 492.0 2.0 1.6 1.45
and 497.9 506.8 8.9 7.1 1.12
and 540.7 541.9 1.2 0.9 1.05
and 551.6 554.2 2.6 2.1 3.23
incl. 552.7 553.3 0.6 0.5 6.75
and 560.1 561.4 1.3 1.0 5.23
and 588.0 591.5 3.5 2.8 3.10
incl. 588.0 589.6 1.6 1.3 5.78
URNDD29 Prospect 4939.1 7268.1 1207.5 434.4 278.4 279.4 1.0 0.8 1.26
and 283.7 286.9 3.2 2.6 1.01
and 290.0 294.7 4.6 3.7 1.56
incl. 294.1 294.7 0.5 0.4 7.97
and 369.1 370.4 1.2 1.0 1.11
and 376.0 381.0 4.9 3.9 2.81
incl. 379.0 381.0 2.0 1.6 5.57
URNDD29W1 Prospect 4912.5 7268.0 1110.8 395.4 164.6 165.8 1.2 1.0 7.83
and 195.1 200.4 5.3 4.2 2.12
incl. 195.1 196.1 1.0 0.8 5.30
URNDD30 Prospect 4927.1 7367.4 1208.6 494.4 408.3 409.7 1.4 1.1 2.00
and 415.7 418.8 3.1 2.5 4.83
incl. 415.7 418.1 2.4 1.9 6.04
URNDD30W1 Prospect 4904.4 7367.0 1114.7 292.8 219.5 226.8 7.3 5.84 3.99
incl. 223.7 226.8 3.1 2.5 7.70
URNDD28 Prospect 4928.9 7166.9 1191.0 472 371.65 374.93 3.28 2.62 12.51
incl. 373.36 373.9 0.54 0.43 65.00
and 425.78 427.83 2.05 1.64 27.96
incl. 426.8 427.11 0.31 0.25 165.00
URNDD28W1 Prospect 4909.8 7166.8 1093.1 289.6 196.6 197.6 1.0 0.80 21.98
incl. 196.9 197.3 0.40 0.32 52.30
and 254.44 259.65 5.21 4.17 3.38
incl. 259.35 259.65 0.30 0.24 20.40
URNDD34 Prospect 4946.6 7548.1 1199.0 276.0 No Significant Intercept

*Historical estimates derived from the report prepared for Anglogold, Australia titled "Mine Closure Report, Union Reefs Gold Mine (Pine Creek)" prepared by Crosby, Q., Makar, B., Chen Chow, K., Sheehan, E., Davis, G., December 12, 2006. This report was not prepared in accordance with currently accepted guidelines for the preparation of Mineral Resources and Mineral Reserves, and does not comply with National Instrument 43-101 ("NI 43-101") and are not considered by Crocodile Gold, as current mineral resources or mineral reserves. These resource estimates may have also been depleted by past mining, and although possibly demonstrative of the potential grade of the deposits, the historical estimates of tonnage and grade are not considered indicative of the remnant potential resource. A qualified person, as such term is defined under NI 43-101, has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves. Crocodile Gold is not treating the historical estimate as current mineral resources or mineral reserves and the historical estimate should not be relied upon.

About Crocodile Gold

Crocodile Gold is a Canadian company with operating gold mines in the Northern Territory of Australia with a land package of over 3,300 km2. Crocodile Gold is currently mining a number of open pits in the Howley Corridor. The Company is also developing the Cosmo underground mine. Ore is processed at the Union Reefs Mill with a capacity of 2.4 million tonne per year. Crocodile Gold has 3.175 million ounces of NI 43-101 compliant Measured and Indicated mineral resources and 2.14 million ounces of Inferred mineral resources (see the NI 43-101 compliant technical report entitled "Report on the Mineral Resources and Mineral Reserves of the northern Territory Gold and Base Metals Properties for Crocodile Gold Corp." by Fleur Muller, Mark Edwards and Heath Gerritsen dated April 4, 2011, filed under the Company's profile on SEDAR for the details regarding these mineral resource estimates). The Company has an extensive exploration program in place and is drilling on several key properties on its expansive land package. Crocodile Gold's main focus is on the Cosmo Mine, the Union Reefs and Maud Creek project areas.

For additional information, please visit our website www.crocgold.com. Follow us on Twitter (@crocgold_crk) or Facebook (Crocodile Gold Corporation).

Qualified Person and QA/QC

F. W. Nielsen P.Geo, V.P. Exploration 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.

Drill samples were assayed at Northern Australian Laboratories (NAL). Assay results are based on 50g fire assays. All intersections from diamond samples are HQ half-core. Diamond sample intervals are determined using lithological controls or 1.0m whichever is larger.

Mean grades have been calculated on a minimum of 0.7m interval, 0.5 g/t lower cut-off and maximum 3m internal dilution. No upper cut has been applied. All intersections are down-hole intervals. All deviations have been verified by down hold camera or down hole Gyro. QA/QC for these holes has been checked and verified through blind standards, field duplicates, lab repeats and barren flushes. QAQC results are within expected limits.

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 the figures associated with this release, please visit the following link: http://media3.marketwire.com/docs/CRKfigures120.pdf.

Contact Information

  • Crocodile Gold Corp.
    Rob Hopkins
    Manager, Investor Relations
    416-861-5899
    info@crocgold.com