TORONTO, ONTARIO--(Marketwire - May 10, 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 Prospect and Crosscourse deposits at the Union Reefs Project. The Company currently has two diamond rigs working to complete the current phase of drilling.
Highlights of these drill holes include:
Below Crosscourse Open Pit (West Lodes):
- 10.0 g/t Au over 3.16m in hole URNDD0040
Below Prospect Open Pit:
- 6.67 g/t Au over 9.0m in hole URNDD0045
- 240.4g/t Au over 2.52m in hole URNDD0052, including 1230g/t Au over 0.47m
- 13.48g/t Au over 5.53m in hole URNDD0054
- 5.05g/t Au over 6.64m in hole URNDD0056
- 6.31g/t Au over 12.61m in hole URNDD0061
- 11.87g/t Au over 7.33m in hole URNDD0067
- 9.59g/t Au over 3.69m in hole URNDD0070
Full drilling results can be found in the table linked to this release.
Crocodile Gold is currently drilling at the Prospect and Crosscourse Deposits to vertical depths of up to 400 metres and along an expanded strike length of 650 metres in order to confirm the continuity of several mineralized zones. This program has seen significant success (see releases dated August 23, September 8, October 13, 2011 and January 20, 2012) and it is anticipated that an increase in resources will result once the infill drill program is completed this month.
The West Lodes (See Figure 1) is interpreted to be a parallel structure to the mineralized zones at Prospect. A historic resource estimate* of 18,000 tonnes grading 14.6 g/t Au was previously estimated for the West Lodes. The Company has drilled beneath (URNDD0040) the interpreted West Lodes and intersected significant mineralization, which it believes connects up with a footwall zone at the Prospect deposit. The drill program has subsequently been expanded by an additional 1,500 metres in order to confirm the interpreted association. It is anticipated that if this association is confirmed that the scope of the Prospect deposit will expand significantly.
At the Prospect deposit, drilling is currently being concentrated along a 200 metre strike length and to vertical depth of 200 metres with drill holes at 25 metre intervals. The objective is to re-calculate resources and subsequently design an exploration ramp to access and sample the mineralization at depth.
Chantal Lavoie, President of Crocodile Gold, states: "These drill results provide further encouragement for the Company that it can quickly define significant gold mineralization in areas that were previously mined from surface. Crocodile Gold has several locations close to the Union Reefs mill that have been extensively mined in the past and we will be investigating these areas in the near future to determine if they can become a future cash flow center for the company. Crocodile Gold has significant near term organic growth prospects that suggest that the true value of the Company is only beginning to be determined."
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 1.6g/t Au to produce 21,242 ounces of gold.
*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 the historical resource estimates 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.
Qualified Person and QA/QC
Mark Edwards, Geology Manager 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. 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 supervised 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 1.0 metre 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.
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 square kilometers. The Company has also recently acquired two operating mines-Fosterville and Stawell-in Victoria State, Australia. Currently, Crocodile Gold is mining a number of open pits in the Howley Corridor and is completing the development of the Cosmo underground mine with commercial production expected in the second half of 2012. Ore is processed at the Union Reefs Mill with a capacity of 2.4 million tonnes per year. The Company has an extensive exploration program in place and is focusing advanced exploration efforts on its key properties, Union Reefs and Maud Creek.
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). Mineral resource estimates are currently being prepared on Crocodile Gold's recent property acquisitions at Fosterville and Stawell and the Company expects to file a NI 43-101 compliant technical report by the third quarter of 2012.
For additional information, please visit our website www.crocgold.com. Follow us on Twitter (@crocgold_crk) or Facebook (www.facebook.com/CrocodileGoldCorp).
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 strategy, outlook, financial results, 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, 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 table associated with this release, please visit the following link: http://media3.marketwire.com/docs/crocf0510table.pdf.
To view the figures associated with this release, please visit the following link: http://media3.marketwire.com/docs/crocf0510figures.pdf.