TORONTO, ONTARIO--(Marketwired - March 12, 2014) - Crocodile Gold Corp. (TSX:CRK)(OTCQX:CROCF)(FRANKFURT:XGC)("Crocodile Gold" or the "Company") reports on high-grade intersections from drill holes completed on the Phoenix and Lower Phoenix structures at the Fosterville Gold Mine (FGM) in the State of Victoria, Australia. Highlights of the drilling include:
Phoenix Structure Drill Intercepts
- 12.66 g/t Au over 6.90m (ETW* 5.40m) in hole UDH0501
- 6.40 g/t Au over 9.65m (ETW 7.90m) in hole UDH0503
- 10.41 g/t Au over 5.30m (ETW 3.80m) in hole UDH0505
- 6.00 g/t Au over 15.90m (ETW 11.70m) in hole UDH0750
Lower Phoenix Structure Drill Intercepts
- 24.00 g/t Au over 33.80m (ETW 7.00m) in hole UDE110
- 32.86 g/t Au over 3.60m (ETW 3.00m) in hole UDH0561
- 12.89 g/t Au over 14.35m (ETW 8.00m) in hole UDH0575
- 19.15 g/t Au over 6.85m (ETW 6.30m) in hole UDH0617
- 16.67 g/t Au over 11.90m (ETW 8.60m) in hole UDH0643
- 122.35 g/t Au over 6.80m (ETW 6.60m) in hole UDH0755
*ETW - Estimated True Width. Full drill results can be found in Table 1
2013 Phoenix and Lower Phoenix Drilling Program
The Company's 2013 drilling campaign at Fosterville Gold Mine targeted known estimated Mineral Resources associated with the Phoenix and Lower Phoenix structures as well as extension opportunities, believed to provide excellent potential for Mineral Resource growth. Progressive drilling and geological modeling of the Phoenix Fault System has confirmed the presence of two favourable structural zones (Phoenix and Lower Phoenix) below the 4500mRL, which host significant gold mineralization. Both the Phoenix and Lower Phoenix Zones are proximal to fold axial plane offsets along the Phoenix Fault System.
Lower Phoenix Structure
Crocodile Gold has drilled 225 metres south along strike (down plunge), 275 metres north along strike (up plunge) and 75 metres down dip from the existing Lower Phoenix estimated Mineral Reserve (See Figures 1, 2, 3 & 4). Drill results have provided evidence that significant gold mineralization associated with the Lower Phoenix structure is continuous over a 1 kilometre strike length and an approximate 100 metre down dip length, between Mine Grid northings 6700mN and 7700mN. Drill intercepts that fall outside of the current estimated Mineral Reserve and that, in management's view, present opportunity for Mineral Resource extension are reported in Table 1. Drilling is absent south of 6700mN and there is no drilling north of 7700mN for a distance of 500 metres on the Lower Phoenix structure. Crocodile Gold expects to complete additional drilling in 2014 south of 6700mN and north of 7700mN along the interpreted orientation of the Lower Phoenix structure, where there is potential to define further zones of significant gold mineralization.
Crocodile Gold has also continued definition drilling into the Phoenix structure during 2013. Drill results continue to reaffirm good continuity of the known estimated Mineral Resources in this area (see Figures 1, 2 & 3). There is no drilling on the Phoenix structure south of 6500mN for a distance of 450 metres in strike length. The Company expects to complete additional exploration drilling on the Phoenix structure south of the 6500mN during 2014. Crocodile Gold currently has three underground diamond drill rigs conducting work on various targets at Fosterville Gold Mine.
Progressive geological modeling and mining studies on both the Phoenix and the Lower Phoenix mineralized structures have resulted in the development of two independent mining areas, Central and Phoenix (See Figures 2, 3 & 4). The Central decline will continue to provide access to the existing Phoenix estimated Mineral Reserves and southern estimated Mineral Resource extensions, which are now the subject of upcoming reserve studies. The Phoenix decline development, which commenced in February 2013, will provide access to the Lower Phoenix Mineral Reserve. Anticipated resource extensions north and south of the Lower Phoenix estimated Mineral Reserve will also be accessed from this decline. Ventilation upgrades are ongoing throughout 2014, to service the future operation of the Central and Phoenix mining areas.
Rodney Lamond, President and CEO of Crocodile Gold, commented on the recent results: "The Company continues to focus its exploration strategy on near-term drilling targets as part of our planning for sustainable production and I am very encouraged with the recent drilling results from the Phoenix exploration program. The results confirm the down plunge extension of the Phoenix orebody and suggest that we may be able to extend our current Life of Mine (LOM) plans. In addition, the mineralization appears to separate into two distinct mining zones: the Phoenix and Lower Phoenix ore zones. As the mining focus moves towards these new ore zones, the Company has already commenced a $4.5 million underground ventilation upgrade that will service the growing Phoenix orebody and facilitate the increased mining activity on the two new mining horizons."
The Company is in the process of updating its Mineral Reserve and Mineral Resource estimate at Fosterville, which will incorporate the encouraging drill results obtained throughout 2013. The work is expected to be finalized in the second quarter and management is optimistic that additional estimated Mineral Resources identified will continue to extend the mine life of Fosterville.
About Fosterville Gold Mine
FGM commenced commercial production in April 2005 and up to the end of December 2013 has produced 771,266 ounces of gold. The ore is refractory and gold is recovered through a state-of-the-art BIOX® processing plant that produces approximately 90,000 to 100,000 ounces annually. The mill is capable of processing approximately 830,000 tonnes of ore annually.
F. W. Nielsen, P. Geo, a technical consultant to Crocodile Gold Corp., Troy Fuller, Geology Manager and Simon Hitchman, Exploration Manager of Fosterville Gold Mine are "qualified persons" as such term is defined in National Instrument 43-101 and have reviewed and approved the technical information and data included in this press release.
All diamond drill hole collars (Table 2) are accurately surveyed using a Leica Total Stations instrument and down hole deviations are also verified by electronic multi-shot cameras. All equipment is regularly calibrated.
Drill samples were assayed at On Site Laboratories in Bendigo, Victoria. Assay results are based on 25 gram charge fire assays. All reported intersections are from NQ2 sized diamond drill core that was cut longitudinally in half with a diamond saw. One half of the drill core was sent for assay and the other half retained for reference. Drill core sample intervals are determined using logged sulphide controls, vary between 0.3 and 1.5m in length.
Mean grades have been calculated using a variable lower cut-off (generally 2 g/t Au) and maximum 2m internal dilution. No upper gold grade cut has been applied. All intersections are down-hole intervals. Assay QA/QC for these drill holes was checked and verified through the use of blind and laboratory standards, laboratory duplicates, repeats and insertion of blind blanks. Between laboratory jobs barren flushes are carried out to remove job to job contamination. QAQC results are within expected limits. Drill intercepts containing visible gold are annotated in Table 1.
About Crocodile Gold
Crocodile Gold is a Canadian gold mining and exploration company with three operating mines in the Northern Territory and the State of Victoria, Australia. The Company has a combined land package in excess of 4,000 sq. km. The objective of Crocodile Gold is to continue production from its three operating mines, Cosmo, Stawell and Fosterville, while also exploring and developing the Company's resources to ensure sustainable production in the future. For additional information, please visit our website www.crocgold.com.
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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 the Company's expectations for future performance based on current drill results and past production, expected gold prices, and mineral resource and reserve 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 licences, 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 that 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, and 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 tables associated with this release, please visit the following link: http://media3.marketwire.com/docs/933019tab.pdf
To view the figures associated with this release, please visit the following link: http://media3.marketwire.com/docs/933019i.pdf