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

Crocodile Gold Corp.

August 23, 2011 07:00 ET

Crocodile Gold Intersects 7.1 g/t Au Over 4.5 Meters Including 11.2 g/t Au Over 2.6 Meters at the Union Reefs Project, Prospect Deposit

Phase 2 Drilling to Follow Up on Successful High Grade Zones, Including Prospect and Lady Alice Deposits

TORONTO, ONTARIO--(Marketwire - Aug. 23, 2011) - Crocodile Gold Corp. (TSX:CRK)(OTCQX:CROCF)(FRANKFURT:XGC) ("Crocodile Gold" or the "Company") is pleased to announce continued high grade intersections from the exploration drilling program currently underway at the Union Reefs project (Figure 1). Crocodile Gold has now completed the first round of drilling on the Prospect deposit, with the two diamond drill rigs now drilling the E-Lens target at the Crosscourse deposit and the Lady Alice deposit. It is now planned that the new results are to be included in a resource update (Table 1).

Highlights of the drill results from Union Reefs project include:

  • 7.1 g/t Au over 4.5 meters including 11.2 g/t Au over 2.6 metres at Prospect;
  • 6.2 g/t Au over 3.6 metres including 67.3 g/t Au over 0.3 metres at Prospect;
  • 4.4 g/t Au over 5.5 metres including 23.3 g/t Au over 0.8 metres at Prospect;
  • 3.6 g/t Au over 9.0 metres and 8.1 g/t Au over 1.2 metres at Lady Alice.

Crocodile Gold currently has two diamond drill rigs drilling at the Union Reefs project. To date, these rigs have been working on completing the first pass of drilling below the current area defining the Prospect deposit. One rig has moved to drill the E-Lens target at the Crosscourse deposit, with the second rig moving to the nearby Lady Alice deposit to continue drilling below the existing pit.

Bill Nielsen, Vice President Exploration, commented: "Now that the first pass of drilling has been completed at the Prospect Zone, we will have the opportunity to review these results and target future drilling at these higher grade zones. To date, the drill results have been encouraging as the defined mineralization is as expected with minable grades and widths noted".

David Keough, Chief Operating Officer, reviewed the results and commented: "Being at shallow depth, in close proximity to the Union Reefs Mill and on active mining leases, these zones have the potential to bring higher grade ore in the short to medium term with minimal investment, supporting our growth strategy".

For the first pass, a total of nine holes have been completed for more than 1,870 metres of drilling at Prospect (Figure 2, Figure 3). These holes have all targeted below the current National Instrument 43-101 ("NI 43-101") compliant resource for the deposit to a depth of 70-100 meters below the existing pit and along a strike length of around 550 meters. Highlights of this drilling include the previously released 4.92 metres at 5.75 g/t Au and 2.92 metres at 6.67 g/t Au (See news release dated July 6, 2011). Phase two drilling will be implemented to follow up on the higher grade zones. This will entail drilling along a strike length of 400-500 metres and to a depth of 125-150 metres. The overall objective is to define resources for subsequent underground mining. The Prospect, Lady Alice and Crosscourse deposits are all located within close proximity of the Union Reefs mill.

Table 1

Hole_ID Location Local Grid Depth
(m)
From
(m)
To
(m)
Width
(m)
True Width(m) Grade
(g/t Au)
East North RL
URNDD19 Prospect 4880 7180 1189 225 102.8 105.3 2.5 1.9 3.0
and 146.1 150.7 4.7 3.3 1.8
URNDD20 Prospect 4891 7280 1197 216.8 63.6 64.6 1.0 0.8 3.4
and 145.0 146.6 1.6 1.2 1.0
and 179.9 182.9 3.0 2.2 1.2
and 184.8 185.8 1.1 0.8 1.2
URNDD21 Prospect Reported previously
URNDD22 Prospect 4885 7320 1194 219.6 103.0 106.5 3.6 2.7 6.2
inc 0.3 0.2 67.3
and 155.6 156.3 0.7 0.5 7.5
and 162.4 165.2 2.8 2.1 4.8
inc 0.6 0.4 20.9
and 187.2 187.7 0.5 0.4 26.2
URNDD23 Prospect Reported previously
URNDD24 Prospect Reported previously
URNDD25 Prospect 4896 7420 1203 185.5 148.8 153.3 4.5 3.4 7.1
inc 2.6 2.0 11.2
URNDD26 Prospect 4927 7510 1200 258 Results pending
URNDD27 Prospect 4910 7640 1206 189.3 106.1 111.7 5.5 4.1 4.4
inc 0.8 0.6 23.3

One hole has also been completed at the Lady Alice deposit (Figure 4) which is located to the east of the Prospect drill area. This hole was drilled directly below the existing pit targeting higher grade mineralization. Several intersections have been noted in Table 2. Further drilling of this deposit is currently underway with additional results expected in the coming weeks.

Table 2

Hole ID Location Local Grid Depth
(m)
From
(m)
To
(m)
Width
(m)
True Width
(m)
Grade
(g/t Au)
East North RL
URNDD10 Lady Alice 4920 7648 1207 226.9 20.5 22.0 1.5 1.2 3.5
and 125.5 126.6 1.1 0.9 7.5
and 129.3 138.3 9.0 7.2 3.6
and 138.9 140.9 2.0 1.6 1.9
and 144.2 145.4 1.2 1.0 8.1
and 149.3 151.8 2.5 2.0 1.2
and 158.7 160.5 1.8 1.4 7.5
and 196.0 199.4 3.4 2.7 1.6

In addition, over the past month several shorter exploration holes were drilled under the Crosscourse and the Millars/Big Tree areas. Several of these have shown the existence of higher grade mineralization below these historic mining areas (Figure 5). Further follow up work is planned when the rigs have completed current drilling at the Prospect and Lady Alice areas.

Table 3

Hole ID Location Local Grid Depth
(m)
From
(m)
To
(m)
Width
(m)
True Width
(m)
Grade
(g/t Au)
East North RL
URNDD15 Millars / Big Tree 5056 5599 1194 225.0 143.4 144.6 1.3 0.9 9.4
and 159.0 160.2 1.2 0.9 27.8
and 176.4 179.6 3.2 2.4 1.4
URSDD12 Millars / Big Tree 5037 5300 1187 195.0 149.4 151.2 1.8 1.4 1.1
and 179.0 183.4 4.4 3.3 1.0
URSDD14 Millars / Big Tree 5031 5560 1195 155.3 77.6 79.9 2.4 1.8 7.5
inc 1.7 1.3 10.3
and 86.4 90.4 4.0 3.0 1.4
and 112.4 124.6 12.2 9.1 1.1
and 128.6 132.5 3.9 2.9 1.8
URNDD03 Cross-course 5125 6800 1195 248.8 244.5 248.4 3.9 2.9 2.5
inc 1.5 1.1 5.4
URSDD17 Cross-course 5067 5900 1196 201.1 129.8 134.5 4.7 3.5 2.2
and 155.3 157.0 1.7 1.3 4.5
and 163.1 164.6 1.5 1.1 1.1

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 focus is on the Cosmo/Howley corridor and the Union Reef project area.

Qualified Person

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

Notes:

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

2. Assay results are based on 50g fire assays.

3. All intersections from diamond samples are HQ half-core.

4. Diamond sample intervals are determined using lithological controls or 1.0m whichever is larger.

5. Mean grades have been calculated on a minimum of 1.0m interval, 0.5 g/t lower cut-off and maximum 3 metres internal dilution.

6. All intersections are down-hole intervals.

7. All deviations have been verified by down hold camera.

8. Quality Assurance Quality Control ("QAQC") 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 figures associated with this press release, please visit the following link: http://media3.marketwire.com/docs/722282_figs.pdf

Contact Information

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