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

Crocodile Gold Corp.

February 22, 2011 08:30 ET

Crocodile Gold Intersects 6.9 g/t Au Over 10 Metres Under Historic Prospect Open Pit Near Union Reefs Mill That Could Potentially Lead to Production in 2011

TORONTO, ONTARIO--(Marketwire - Feb. 22, 2011) - Crocodile Gold Corp. (TSX:CRK)(OTCQX:CROCF)(FRANKFURT:XGC) ("Crocodile Gold" or the "Company") is pleased to announce initial drill results from five drill holes completed between the Prospect and Crosscourse historic open pits in the Union Reefs project area (refer to Figures 1 and 2 below). The drill holes targeted high grade extensions of mineralization of the historical open pits previously mined until mine closure in 2003 which are located adjacent to the Union Reefs Mill.

Highlights of these drill results include:

  • 6.9 g/t Au over 10 metres including 30.6 g/t Au over 2 metres in hole URR004
  • 11.2 g/t Au over 4 metres including 21.8 g/t Au over 2 metres in hole URR001

Mike Hoffman, President and CEO of Crocodile Gold commented, "These initial drill results from the Union Reefs project area adjacent to our mill demonstrate the potential of a new higher grade ore source that potentially could be developed in 2011 and contribute potential lower cost ounces to Crocodile Gold's overall production profile. This area continues to be one of our highest exploration priorities and we expect to release further results in the coming months."

Table 1: Union Reefs Drill Results

Hole ID Grid Coordinates Survey Data Interval Grade
(g/t Au)
Local Easting Local Northing Azimuth Dip From (m) To (m) Interval (m) True Width (m)
URR001 4744 7142 90 -61 58 62 4 1.7 11.2
including   58 60 2 0.8 21.8
URR003 4821 7146 90 -62 10 12 2 1.2 1.7
URR004 4818 7145 90 -76 25 35 10 4.0 6.9
including   31 33 2 0.9 30.6

Crocodile Gold has ranked the Union Reefs project area as one of the Company's highest priority areas for the growth of mineral reserves and resources and near term production within the Company's portfolio (please refer to Crocodile Gold press release dated February 15, 2011 for additional information). The historic mining figures supplied on Crosscourse indicate it was mined at around 3,000 ounces per vertical metre, highlighting the potential for further underground high grade targets.

This first drill program at the Prospect open pit was primarily designed for environmental assessment but some holes did target higher grade mineralization that are noted as steeply dipping zones associated with quartz stockwork veining. Two holes were designed for geological and environmental reasons not to target mineralization. A thorough review was conducted on the regional and grade control drilling in and around the Prospect open pit and it was noted that there is only very limited drilling below the mined pit, even though the mineralization was not closed off at depth.

Crocodile Gold believes potential exists for extensions of mineralization in the area between Crosscourse and Prospect open pit. The mineralization at Crosscourse is contained within two lenses – the E Lens (on the Union Mineralized Zone) and Ping QueLens (on the Lady Alice Mineralized Zone). Historic drilling indicates the orebody continues down plunge below the existing Crosscourse open pit.

Future drilling will target known extensions of the high grade trends between the Prospect and Crosscourse pits and also other historic open pits. Drilling will also be conducted under the Prospect pit to target mineralization below historic backfilled stopes that were noted in the area during mining. These stopes were intersected by some historic RC drilling, giving lower grade zones as the backfill was apparently weakly mineralized. By drilling deeper under the existing pit it is planned that all drilling will be below these workings.

In releasing this information, Mark Edwards, General Manager, Geology and Exploration for Crocodile Gold, commented, "The initial drill results from Prospect and Crosscourse indicate that there is significant potential to identify higher grade zones of mineralization within both the Lady Alice and Union Mineralized Zones. These higher grade mineralized structures will be the main focus of exploration in the Union Reefs Project area. Prospect is a highly ranked target due to the indicated resource already reported there and the significant high grade intercepts identified from the historic drilling below the current mined pit."

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 2,500 km2. Crocodile Gold is currently mining from the Howley, North Point and Princess Louise open pit mines and the Brocks Creek underground mine. Crocodile Gold 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 3.5 million ounces of NI 43-101 compliant measured and indicated resources (57 million tonnes at an average grade of 1.9 g/t gold) and 2.2 million ounces of inferred resources (38 million tonnes at an average grade of 1.8 g/t gold) (see the Amended Annual Information Form dated November 5, 2010 and Crocodile Gold press releases dated September 8, 2009, January 25, 2010, October 14, 2010 and December 2, 2010).

Qualified Person

Mark Edwards, General Manager Geology and Exploration for 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.

All intersections are from RC drilling, with cone splitter sampling.

RC sample intervals are all 1.0m.

Mean grades have been calculated on a minimum of 2m interval, 0.7 g/t lower cut-off and maximum 2m internal dilution.

All intersections are down hole intervals.

All deviations have been verified by down hold camera.

QAQC for these holes has been checked and verified through blind standards, field duplicates, lab repeats and barren flushes. All 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, including management's assessment of Crocodile Gold's targeted production, future plans, operations, weather forecasts 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 those risks described in the annual information form of the Company. 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 included with this release, please visit the following link: http://media3.marketwire.com/docs/crk222figs.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