TORONTO, ONTARIO--(Marketwire - July 11, 2011) - Crocodile Gold Corp. (TSX:CRK) (OTCQX:CROCF) (FRANKFURT:XGC) ("Crocodile Gold" or the "Company") is pleased to announce that their joint venture partner, Thundelarra Exploration Ltd. ("Thunderlarra") have commenced their 2011 drilling program on the Thunderball uranium deposit located on an exploration lease in which Thundelarra holds a 70% interest in the uranium rights and Crocodile Gold holds a 30% interest. The Thundelarra program will be focused on drilling over 20,000 meters in the Pine Creek region with the goal of defining additional uranium resources. Under the joint venture agreement, Crocodile Gold retains all other metal rights including precious metals and base metals. The location of the properties included in the joint venture and of the Thunderball deposit can be viewed in Figure 1.
Of particular interest to Crocodile Gold is one drill hole (TPCRC066) established during the 2010 drill program at the very north end of the Thunderball deposit that returned 4.96 g/t Au over 12 metres, which included 10.90 g/t Au over 4 metres from 66 metres down the vertically drilled reverse circulation (RC) hole. The initial samples were 4.0 meter composites. All sampling of this hole stopped at 78 meters with the last composite sample assaying 2.74 g/t Au. Crocodile Gold has 100% rights to this gold mineralization.
Drill hole TPCRC066 is located roughly 5.3 kilometres to the south along strike from the current Crocodile Gold mining areas of the Princess Louise and North Point open pit mines (Figure 2).
Crocodile Gold has obtained the database from Thundelarra and intends to re-sample at one metre intervals down the drill hole. We will conduct additional analytical work to determine the overall significance of this drill intercept. Geological and structural interpretations will be carried out to obtain sufficient information so that the Company can plan additional drilling around this encouraging length of gold mineralization. Crocodile Gold also notes that the geological model/framework established by Thundelarra (represented in Figures 3 and 4) are similar to the other high grade gold deposits held by the Company--particular Cosmo Deeps--and the Company is excited to be working with Thundelarra on this potential dual commodity exploration project.
Thundelarra has announced that the current RC drilling represents the start of a program aimed at expanding high grade uranium resources at Thunderball.
Further interpretation of existing drill data has identified that very high grade mineralization occurs in close proximity to the hinge axis of the Thunderball anticline, as shown on the cross-section in Figure 3. Drill hole logging has revealed a brittle-ductile deformation zone associated with the hinge, with favourable stratigraphic horizons within the Mt Bonnie Formation and Gerowie Tuff hosting uranium mineralization. Importantly, the majority of drilling carried out to date is situated on the flank of the anticline, well west of the prospective hinge zone, as shown on the drill plan in Figure 4.
Drilling is currently targeting the deformation zone to the south of the existing resource. A combination of RC and diamond drilling will be used to test the deformation zone as it plunges to the north, with a diamond drill rig expected on site within the next two weeks.
A third exploration target at Thunderball is the intersection of the hinge axis with the Gerowie Tuff/Zamu Dolerite contact beneath the existing resource, as marked on the cross-section. The deformation zone and stratigraphic contact present good structural traps for mineralization and the dolerite is a geochemically favourable host for uranium. This target will also be tested during the diamond drilling phase of the current program.
The Thunderball Deposit was the subject of an Inferred Resource estimation released earlier this year. All data composites with a grade above 4,000 ppm were cut to that level.
|Thunderball Uranium Deposit Inferred Resource
||200 ppm U3O8 Cut Off Grade
||400 ppm U3O8 Cut Off Grade
|Total Inferred Resource
The uncut model comprises 775,000 tonnes at an average grade of 3,196 ppm U3O8 for 5.5 million pounds of U3O8 (400 ppm U3O8 Lower Cut Off Grade).
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. 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 3.175 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 Crocodile Gold press release April 26, 2011). 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 deposit, the Union Reefs project area and the Maud Creek deposit.
Mr. Bill Nielsen, P. Geo., is the Company's Qualified Person as defined by the National Instrument 43-101 and has verified the technical information in this news release.
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 press release, please visit the following link: http://media3.marketwire.com/docs/CG_711figs.pdf