Crocodile Gold Continues to Extend Howley Mineralization-Up to 13.36 g/t Au Over 5 Metres in Hole HSRC142 Within a Larger Mineralized Envelope of 1.82 g/t Au Over 40 Metres
TORONTO, ONTARIO -- (Marketwire) -- 07/08/10 -- Crocodile Gold Corp. (TSX: CRK)(OTCQX: CROCF)(PINK SHEETS: CROCF)(FRANKFURT: XGC) ('Crocodile Gold' or the 'Company') is pleased to announce the latest reverse circulation drill results from its Howley project in the Northern Territory of Australia (refer to Figure 1 below for location map). The project is currently the site of an ongoing reverse circulation drill program, which is part of the exploration program being conducted on the Company's extensive landholdings in the Northern Territory.
Highlights of these drill results are:
-- Near surface mineralization of 8.93 g/t Au over 6 metres in hole
HSRC014;
-- Numerous wider mineralized intersections down dip from existing
resources in hole HSRC150 with 5.02 g/t Au (uncut) and 4.78 g/t Au (cut)
over 9 metres, in hole HSRC142 with 13.36 g/t Au (uncut) and 7.46 g/t Au
(cut) over 5 metres, in hole HSRC151 with 2.44 g/t Au over 7 metres and
in hole HSRC147 with 22.7 g/t Au (uncut) and 5.81 g/t Au (cut) over 9
metres;
-- Higher grade intercepts continue to be intersected on the east
anticlinal limb of mineralization with up to 12.17 g/t Au over 2 metres
in hole HSRC127 at a vertical depth of approximately 24 metres;
-- Mineralization continues to be intersected in the West Zone Area with up
to 5.60 g/t Au over 6 metres in hole HSRC336 at approximately 40 metres
below surface;
-- Mineralization extended more than 600 metres north of existing resources
with 6.14 g/t Au over 2 metres in hole HSRC238; and
-- Mineralization remains open to the north, south, west and at depth.
The Howley mineralization occurs within an anticlinal structure that is the southern part of a more than 25 kilometre mineralized system within the Company's tenements and with existing shallow NI 43-101 compliant resources located along this entire trend. The Howley open pit is located immediately north of the Cosmo pit with mineralization present more than 5 kilometres to the north of Cosmo. The majority of work to date at Howley has focused on the west limb of the anticline which is also the location of the majority of the current known resources. The majority of previous drilling and known resources have extended less than 100 metres below surface, and drill testing the extent of mineralization in all directions including extensions at depth are the main focus of the existing drill program at Howley.
Crocodile Gold is pleased to report that these current drill results continue to confirm that mineralization is present in several key areas as previously reported (refer to Crocodile Gold press releases dated January 14, 2010 and May 3, 2010). These areas include:
1. Mineralization at depth beneath existing resources;
2. Mineralization in areas of no existing resources and minimal drilling;
3. Higher grade mineralization on the east anticlinal limb;
4. Further mineralization in the West Zone Area; and
5. Potential upgrade of mineralization within existing pit shells.
Area 1: Mineralization at depth beneath existing resources
These results demonstrate that mineralization exists down dip of current resources as shown in hole HSRC150 with 5.02 g/t Au (uncut) and 4.78 g/t Au (cut) over 9 metres, a higher grade intercept within a zone of mixed mineralization and waste of 1.58 g/t Au over 47 metres (refer to Figure 2 below for a plan view of recent Howley drill hole collars). The majority of current resources at Howley are less than 100 metres below surface, and as part of the current drill program, Crocodile Gold drilled several holes to vertical depths beyond 200 metres to continue to test for mineralization at depth. Some higher grade intercepts were encountered at depth including 13.36 g/t Au (uncut) and 7.46 g/t Au (cut) over 5 metres in hole HSRC142, a higher grade intercept within a zone of mixed mineralization and waste of 1.82 g/t Au over 40 metres, and 22.7 g/t Au (uncut) and 5.81 g/t Au (cut) over 9 metres in hole HSRC147. Hole HSRC151 intersected 2.44 g/t Au over 7 metres. Mineralization continues to remain open at depth.
Area 2: Mineralization in areas of no existing resources and minimal drilling
As part of these current results, mineralization has been intersected more than 600 metres north of the existing resources and 100 metres north of mineralization found in previously reported drill results (refer to Crocodile Gold press release dated May 3, 2010). In the area between approximately 6000N to 6600N, no resources have been defined due to lack of adequate drilling to calculate a resource (refer to Figure 2). Hole HSRC238 intersected 6.14 g/t Au over 2 metres 600 metres north of the existing resources. Additional intersections in this area include 1.78 g/t Au over 6 metres in hole HSRC232 and 4.06 g/t Au over 5 metres in hole HSRC237.
Area 3: Higher grade mineralization on the east anticlinal limb
The majority of historical exploration at Howley has focused on the west limb of the anticlinal structure, at the location of the bulk of existing resources. The east limb has previously received little attention, and Crocodile Gold has been drilling on this limb and has been successful in intersecting higher grade mineralizaton, as previously reported (refer to Crocodile Gold press release dated May 3, 2010). As part of the current program, hole HSRC127 intersected 12.17 g/t Au over 2 metres at approximately 24 metres below surface, continuing to confirm that higher grade mineralization is present on the east limb.
Area 4: Further mineralization in the West Zone Area
One objective of this drill program is to better define the West Zone Area and the extent of the mineralization. Crocodile Gold identified the West Zone Area in January 2010 and has made this area a priority with the goal of possibly extending the existing open pit located to the east of this area. Mineralization continues to be intersected in this region. For example, hole HSRC336 intersected 5.6 g/t Au over 6 metres at a depth of approximately 40 metres below surface. In addition, hole HSRC264 intersected 3.38 g/t Au over 3 metres.
Area 5: Potential upgrade of mineralization within existing pit shells
Several holes intersected mineralization within the existing pit shells near surface and should assist in potentially upgrading the existing resource categories. Hole HSRC014 intersected 8.93 g/t Au over 6 metres only a few metres below surface. Some wider intervals were also intersected including 1.81 g/t Au over 15 metres in hole HSRC084 and 1.64 g/t Au over 11 metres in hole HSRC078.
Summary
In releasing this information, Crocodile Gold's Chief Operating Officer, David Keough, commented, 'Our exploration efforts at Howley have continued to demonstrate that Howley could be significantly larger than what is currently defined by the current resource estimate. This is one of our highest priority areas and we are actively drilling to further define the extent of mineralization. We continue to better understand the Howley mineralization as our drill program advances and we are pleased to report that the mineralization continues to remain open particularly to the west and north and at depth. The next phase of our drill program will focus on defining the extent and potential of the newly discovered ore lenses.'
Table 1: Howley Project RC Drill Results
----------------------------------------------------------------------------
Grade
Hole ID Grid Coordinates Survey Data Interval (g/t Au)
----------------------------------------------------------------------------
Local Local From to Interval Grade
Hole ID Easting Northing Azimuth Dip (m) (m) (m) (g/t Au)
----------------------------------------------------------------------------
BHRC028 5405 7378 90 -60 5 7 2 1.26
----------------------------------------------------------------------------
and 90 -60 44 46 2 1.05
----------------------------------------------------------------------------
HSRC014 5508 5548 90 -60 1 7 6 8.93
----------------------------------------------------------------------------
HSRC044 5310 5000 90 -60 163 166 3 1.00
----------------------------------------------------------------------------
and 90 -60 206 213 7 1.67
----------------------------------------------------------------------------
and 90 -60 233 235 2 1.05
----------------------------------------------------------------------------
HSRC049 5345 5400 90 -60 72 78 6 1.34
----------------------------------------------------------------------------
HSRC072 5115 4350 90 -60 25 37 12 1.07
----------------------------------------------------------------------------
and 90 -60 44 47 3 1.79
----------------------------------------------------------------------------
and 90 -60 98 101 3 0.78
----------------------------------------------------------------------------
and 90 -60 113 118 5 1.32
----------------------------------------------------------------------------
HSRC078 5360 5500 90 -60 31 34 3 1.20
----------------------------------------------------------------------------
and 90 -60 38 49 11 1.64
----------------------------------------------------------------------------
and 90 -60 77 82 5 1.19
----------------------------------------------------------------------------
and 90 -60 86 89 3 0.90
----------------------------------------------------------------------------
and 90 -60 92 95 3 0.77
----------------------------------------------------------------------------
and 90 -60 118 124 6 1.01
----------------------------------------------------------------------------
and 90 -60 127 129 2 1.58
----------------------------------------------------------------------------
HSRC080 5460 5500 90 -60 3 7 4 0.88
----------------------------------------------------------------------------
and 90 -60 11 15 4 1.05
----------------------------------------------------------------------------
HSRC083 5460 5550 90 -60 27 31 4 0.84
----------------------------------------------------------------------------
and 90 -60 35 40 5 3.44
----------------------------------------------------------------------------
and 90 -60 65 69 4 0.79
----------------------------------------------------------------------------
HSRC084 5360 5550 90 -60 37 52 15 1.81
----------------------------------------------------------------------------
and 90 -60 85 90 5 1.65
----------------------------------------------------------------------------
and 90 -60 127 130 3 1.47
----------------------------------------------------------------------------
HSRC100 5320 5900 90 -60 83 89 6 1.20
----------------------------------------------------------------------------
and 90 -60 132 135 3 0.87
----------------------------------------------------------------------------
and 90 -60 142 147 5 1.29
----------------------------------------------------------------------------
and 90 -60 150 154 4 1.11
----------------------------------------------------------------------------
HSRC101 5410 5900 90 -60 19 41 22 1.02
----------------------------------------------------------------------------
and 90 -60 107 114 7 1.50
----------------------------------------------------------------------------
HSRC102 5460 5900 90 -60 13 16 3 0.78
----------------------------------------------------------------------------
and 90 -60 31 36 5 0.99
----------------------------------------------------------------------------
and 90 -60 39 41 2 0.89
----------------------------------------------------------------------------
HSRC103 5510 5900 90 -70 14 16 2 1.93
----------------------------------------------------------------------------
and 90 -70 25 27 2 1.25
----------------------------------------------------------------------------
HSRC105 5320 5950 90 -60 34 37 3 1.61
----------------------------------------------------------------------------
and 90 -60 44 46 2 4.80
----------------------------------------------------------------------------
and 90 -60 60 63 3 1.24
----------------------------------------------------------------------------
HSRC125 5690 5125 270 -60 139 143 4 1.85
----------------------------------------------------------------------------
HSRC126 5690 5200 270 -60 8 10 2 2.33
----------------------------------------------------------------------------
HSRC127 5690 5250 270 -60 27 29 2 12.17
----------------------------------------------------------------------------
HSRC128 5690 5125 270 -60 172 174 2 2.14
----------------------------------------------------------------------------
HSRC129 5768 5500 270 -60 205 207 2 0.81
----------------------------------------------------------------------------
HSRC141 5308 4902 90 -60 121 124 3 2.02
----------------------------------------------------------------------------
and 90 -60 191 198 7 1.45
----------------------------------------------------------------------------
and 90 -60 205 209 4 0.84
----------------------------------------------------------------------------
HSRC142 5309 4948 90 -60 11 15 4 0.86
----------------------------------------------------------------------------
and 90 -60 20 23 3 1.05
----------------------------------------------------------------------------
and 90 -60 45 47 2 1.16
----------------------------------------------------------------------------
and 90 -60 193 233 40 1.82(i)
----------------------------------------------------------------------------
including 90 -60 193 205 12 1.41
----------------------------------------------------------------------------
including 90 -60 217 222 5 7.46(i)
----------------------------------------------------------------------------
including 90 -60 228 233 5 2.44
----------------------------------------------------------------------------
HSRC144 5235 5000 90 -65 274 277 3 3.89
----------------------------------------------------------------------------
HSRC147 5310 5050 90 -65 21 23 2 1.31
----------------------------------------------------------------------------
and 90 -65 52 54 2 1.16
----------------------------------------------------------------------------
and 90 -65 225 234 9 5.81(i)
----------------------------------------------------------------------------
and 90 -65 259 261 2 1.16
----------------------------------------------------------------------------
HSRC150 5320 5100 90 -60 220 267 47 1.58(i)
----------------------------------------------------------------------------
including 90 -60 220 229 9 4.78(i)
----------------------------------------------------------------------------
including 90 -60 241 247 6 2.33
----------------------------------------------------------------------------
including 90 -60 262 267 5 2.58
----------------------------------------------------------------------------
and 90 -60 288 290 2 5.21
----------------------------------------------------------------------------
HSRC151 5285 5150 90 -60 86 88 2 1.44
----------------------------------------------------------------------------
and 90 -60 259 266 7 2.44
----------------------------------------------------------------------------
and 90 -60 287 289 2 2.21
----------------------------------------------------------------------------
HSRC154 5350 5201 90 -60 61 65 4 1.10
----------------------------------------------------------------------------
and 90 -60 269 271 2 2.29
----------------------------------------------------------------------------
HSRC155 5370 5250 90 -60 52 54 2 2.34
----------------------------------------------------------------------------
and 90 -60 92 96 4 1.34
----------------------------------------------------------------------------
and 90 -60 127 130 3 1.61
----------------------------------------------------------------------------
HSRC166 5412 4540 90 -60 44 46 2 1.67
----------------------------------------------------------------------------
and 90 -60 51 55 4 1.36
----------------------------------------------------------------------------
and 90 -60 72 78 6 1.44
----------------------------------------------------------------------------
HSRC180 5006 4458 90 -60 71 73 2 0.91
----------------------------------------------------------------------------
HSRC180A 5000 4460 90 -60 129 131 2 1.04
----------------------------------------------------------------------------
HSRC200 5402 4898 90 -60 4 15 11 0.86
----------------------------------------------------------------------------
HSRC225 5500 6600 90 -60 12 15 3 1.14
----------------------------------------------------------------------------
HSRC226 5250 6500 90 -60 48 50 2 2.50
----------------------------------------------------------------------------
HSRC228 5300 6400 90 -60 66 69 3 2.93
----------------------------------------------------------------------------
and 90 -60 132 136 4 1.25
----------------------------------------------------------------------------
and 90 -60 141 144 3 0.84
----------------------------------------------------------------------------
HSRC232 5292 6199 90 -60 66 68 2 0.97
----------------------------------------------------------------------------
and 90 -60 156 162 6 1.78
----------------------------------------------------------------------------
HSRC233 5394 6199 90 -60 25 28 3 1.49
----------------------------------------------------------------------------
HSRC235 5241 6099 90 -60 182 185 3 1.62
----------------------------------------------------------------------------
HSRC235 5241 6099 90 -60 215 220 5 0.83
----------------------------------------------------------------------------
HSRC237 5362 5998 90 -60 69 71 2 1.00
----------------------------------------------------------------------------
and 90 -60 76 84 8 1.52
----------------------------------------------------------------------------
and 90 -60 167 172 5 4.06
----------------------------------------------------------------------------
HSRC238 5300 6600 90 -60 67 70 3 1.17
----------------------------------------------------------------------------
and 90 -60 177 179 2 6.14
----------------------------------------------------------------------------
HSRC240 5367 6050 90 -60 54 58 4 1.08
----------------------------------------------------------------------------
and 90 -60 62 71 9 1.53
----------------------------------------------------------------------------
and 90 -60 79 84 5 1.22
----------------------------------------------------------------------------
and 90 -60 142 146 4 1.62
----------------------------------------------------------------------------
HSRC241 5460 6050 90 -60 3 6 3 1.14
----------------------------------------------------------------------------
and 90 -60 9 15 6 1.50
----------------------------------------------------------------------------
HSRC252 5220 4420 90 -64 169 174 5 0.95
----------------------------------------------------------------------------
HSRC254 5260 4420 90 -60 126 132 6 0.73
----------------------------------------------------------------------------
HSRC256 5300 4420 90 -60 154 157 3 1.05
----------------------------------------------------------------------------
HSRC257 5198 4372 90 -62 179 183 4 2.24
----------------------------------------------------------------------------
HSRC259 5238 4372 90 -62 135 142 7 1.32
----------------------------------------------------------------------------
HSRC262 5178 4332 90 -62 30 32 2 1.14
----------------------------------------------------------------------------
and 90 -62 44 49 5 0.76
----------------------------------------------------------------------------
and 90 -62 56 62 6 1.25
----------------------------------------------------------------------------
HSRC264 5218 4332 90 -62 4 8 4 2.69
----------------------------------------------------------------------------
and 90 -62 142 145 3 3.38
----------------------------------------------------------------------------
HSRC266 5258 4332 90 -62 170 172 2 2.36
----------------------------------------------------------------------------
and 90 -62 192 196 4 0.80
----------------------------------------------------------------------------
HSRC267 5158 4292 90 -60 34 40 6 0.96
----------------------------------------------------------------------------
and 90 -60 179 183 4 1.42
----------------------------------------------------------------------------
HSRC269 5198 4292 90 -62 26 28 2 0.88
----------------------------------------------------------------------------
and 90 -62 169 172 3 0.88
----------------------------------------------------------------------------
and 90 -62 190 192 2 1.01
----------------------------------------------------------------------------
HSRC293 5198 3892 90 -63 10 14 4 1.04
----------------------------------------------------------------------------
and 90 -63 25 32 7 1.31
----------------------------------------------------------------------------
HSRC295 5278 3892 90 -63 69 72 3 1.05
----------------------------------------------------------------------------
HSRC321 5198 4212 90 -65 126 130 4 1.47
----------------------------------------------------------------------------
HSRC331 5027 4401 90 -65 30 33 3 0.92
----------------------------------------------------------------------------
and 90 -65 142 144 2 0.82
----------------------------------------------------------------------------
and 90 -65 160 167 7 0.85
----------------------------------------------------------------------------
HSRC332 5047 4401 90 -65 7 12 5 0.67
----------------------------------------------------------------------------
and 90 -65 73 77 4 1.52
----------------------------------------------------------------------------
and 90 -65 144 151 7 1.07
----------------------------------------------------------------------------
HSRC335 5017 4425 90 -65 68 72 4 1.70
----------------------------------------------------------------------------
and 90 -65 166 170 4 0.87
----------------------------------------------------------------------------
HSRC336 5036 4425 90 -64 42 48 6 5.60
----------------------------------------------------------------------------
and 90 -64 88 90 2 0.99
----------------------------------------------------------------------------
HSRC337 5080 4529 90 -60 9 12 3 1.55
----------------------------------------------------------------------------
and 90 -60 50 52 2 0.84
----------------------------------------------------------------------------
and 90 -60 118 121 3 1.02
----------------------------------------------------------------------------
and 90 -60 148 152 4 0.74
----------------------------------------------------------------------------
HSRC339 5049 4561 90 -65 79 82 3 0.82
----------------------------------------------------------------------------
and 90 -65 100 104 4 1.30
----------------------------------------------------------------------------
and 90 -65 108 117 9 0.72
----------------------------------------------------------------------------
and 90 -65 172 174 2 1.16
----------------------------------------------------------------------------
HSST063 5900 5024 270 -60 0 3 3 0.88
----------------------------------------------------------------------------
(i)Results have had top cut of 33 g/t applied
About Crocodile Gold
Crocodile Gold is a Canadian company with the Howley and North Point open pit mines and the Brocks Creek underground mine in the Northern Territory of Australia. Crocodile Gold announced its first gold pour in December 2009 at its Union Reefs mill, started development work at the Tom's Gully underground mine for expected production in late Q3 2010 and has commenced underground development at Cosmo with full production expected by mid-2011. Crocodile Gold has two mills, including the 2.4 mtpy Union Reefs mill and the 240,000 tpy Tom's Gully mill. Crocodile Gold has 3.09 million ounces of NI 43-101 compliant measured and indicated resources (42.9 million tonnes at an average grade of 2.3 g/t gold) and 1.94 million ounces of inferred resources (26.7 million tonnes at an average grade of 2.3 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 aggressive exploration program in place and is drilling on several key properties on its land package of over 2,500km2.
Qualified Person
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 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.
Face sampling reverse circulation drilling (1m intervals).
Average grades have been determined from wider anomalous zones containing higher grade zones which average greater than 0.7 g/t Au and have been top cut to a maximum grade of 33 g/t, over 2m minimum width and maximum of 2m internal dilution.
All intersections are downhole intervals.
Downhole surveying by downhole camera.
Collar co-ordinates confirmed by survey pick-up. Quality control procedures included blasts of compressed air to clean jaw and roll crushers between samples, a barren flush of river sand to clean bowls in between samples, laboratory duplicate samples undertaken at a rate of 1 in 10 and the insertion of NAL internal standards to monitor performance.
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 'Figure 1 and Figure 2', please visit the following link:
http://media3.marketwire.com/docs/crkmap-708.pdf
Contacts:
Crocodile Gold Corp.
Michael Hoffman
President and CEO
416-861-2964
Crocodile Gold Corp.
Ashleigh Clelland
Manager, Investor Relations
416-861-5899
info@crocgold.com