Crocodile Gold Identifies New Extension to Cosmo Deposit Which Could Potentially Lead to Significant Increase in Cosmo Resource-Intersects 6.85 g/t Au Over 17.7 Metres
TORONTO, ONTARIO -- (Marketwire) -- 09/28/10 -- Crocodile Gold Corp. (TSX: CRK)(OTCQX: CROCF)(FRANKFURT: XGC)('Crocodile Gold' or the 'Company') is pleased to announce the latest diamond drill results from the Cosmo project in the Northern Territory of Australia (refer to Figure 1 below for property location map). Results at the south end of the current Cosmo mineral resource estimate under the historic open pit from CP009, CP009W1 and CP009W2 indicate that it could potentially provide additional bulk tonnage material to the Cosmo underground mine. In addition, the mineralization continues to extend to the north of and down dip of the existing mineral resource estimate at Cosmo along strike towards the Howley project in CP006 and CP006W1 and that a mineral resource expansion incorporating these results is highly probable.
Highlights of these drill results include:
-- 3.99 g/t Au over 4.3 metres in hole CP006W1 approximately 200 metres
north of existing resources on the East Lode
-- 3.43 g/t Au over 3.9 metres, 4.17 g/t Au over 3.0 metres and 8.38 g/t Au
over 2.1 metres in CP009W1, 100 metres south and over 400 metres down
dip of existing mineralization in the West Lode
-- 6.85 g/t Au over 17.7 metres in hole CP009W1
-- 8.85 g/t Au over 7.0 metres in hole CP009W2
-- 3.13 g/t Au over 28.7 metres in hole CP009 including 7.13 g/t Au over
5.0 metres, 5.66 g/t Au over 6.4 metres and 2.24 g/t Au over 7.7 metres
In releasing this information, Mike Hoffman, President and Chief Executive Officer of Crocodile Gold commented, 'These latest drill results at Cosmo continue to show that the mineralization extends well beyond the existing mineral resource. We have doubled the strike length at Cosmo through our drilling program and expect the mineral resource estimate to increase once the results of our drill campaign are incorporated.'
Mark Edwards, Geology Manager of Crocodile Gold commented, 'We are encouraged that this latest drilling has identified a potentially new underground target south of the existing mineral resource close to current underground development which has not been tested by previous drilling. We expect to further drill test this area as development continues.'
These results are part of the ongoing infill and extension drill program at Cosmo to further define the existing mineralization and to expand the mineralization along strike and at depth. Crocodile Gold is currently developing the Cosmo underground mine with production expected in mid-2011. The Cosmo mine is expected to contribute 100,000 ounces of production annually in 2012, the first full year of production. Crocodile Gold plans to drill from underground as ramp development continues at Cosmo with the advantage of lower cost drilling compared to drilling from surface.
Of significance is that a new potential target for underground drilling and development has been identified, south of the existing mineral resource on the West Lode and on strike with the Phantom Pit. As is shown in Table 1 below, a number of significant intercepts were intersected in hole CP009W1, the uppermost wedge of hole CP009, past the modelled resource lode area through the Cosmo anticline core into what is thought to be the strike extension of the Phantom lodes. The Phantom ore body was previously mined in the adjoining Phantom Pit, located directly to the south of the existing Cosmo Pit (refer to Figure 2 below - Cosmo Drill Plan). Initial interpretation of the Phantom lodes suggests that the Phantom lodes occur approximately 430 metres below surface if projected in the section containing holes CP009, CP009W1 and CP009W2 (Figure 5) approaching the surface to within approximately 130 metres or approximately 60 metres below the existing Cosmo Pit shell. Additional drilling will assist in outlining the mineralization.
The current Cosmo mineral resource model encompasses the Cosmo eastern lodes down to a vertical depth of approximately 655 metres below surface and the western lodes down to a vertical depth of approximately 350 metres below surface. The strike length of each of the parallel eastern lodes is approximately 440 metres, and is approximately 260 metres on the western lodes. The majority of historical drilling at Cosmo has focused on the eastern lodes.
Crocodile Gold is using the latest drilling results in the current mineral resource upgrade which is due for completion in early 2011. This information will then be used in a detailed mine schedule and planning. Currently, the Resource Development team is working to incorporate these new drilling results to plan for exploration activities in 2011 based primarily on underground diamond drilling testing the depth extensions of the known east and west lodes plus exploration drilling on targets such as the newly defined Phantom lodes.
Table 1: Cosmo Diamond Drill Results
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Grid Coordinates Survey Data Interval
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True
Local Local From Interval Width Grade
Hole ID Easting Northing Azimuth Dip (m) To (m) (m) (m) (g/t Au)
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CP006 4430 2095 95 -65 723.5 725.5 2.0 1.7 2.54
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and 764.0 768.0 4.0 4.0 1.98
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including 764.0 767.0 3.0 3.0 2.32
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and 784.7 787.2 2.5 2.5 3.34
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and 878.1 883.5 5.4 4.1 2.22
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and 890.5 892.5 2.0 1.5 3.81
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CP006W1 4504 2085 93 -62 558.4 571.9 13.5 11.6 2.09
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including 566.4 570.7 4.3 3.7 3.99
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CP007W1 5162 1780 242 -70 463.7 466.5 2.8 1.6 0.76
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and 476.7 482.2 5.5 3.4 1.63
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and 512.7 516.7 4.0 2.6 1.75
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CP009 5270 1618 243 -56 384.2 395.4 11.2 5.7 2.38
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including 388.9 395.4 6.5 3.5 3.41
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and 411.6 416.7 5.1 2.5 5.39
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and 428.8 457.5 28.7 15.2 3.13
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including 428.8 433.8 5.0 3.0 7.13
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including 439.1 445.5 6.4 3.8 5.66
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including 449.8 457.5 7.7 4.4 2.24
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CP009W1 5217 1591 241 -54 207.2 224.9 17.7 12.2 6.85(i)
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and 228.0 230.9 2.9 2.1 2.95
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and 359.9 367.4 7.5 5.6 1.99
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and 371.9 379.4 7.5 5.8 2.02
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and 416.4 418.9 2.5 1.8 2.12
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and 522.4 531.9 9.5 7.4 2.00
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and 617.7 623.0 5.3 3.0 3.64
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and 697.8 701.7 3.9 1.6 3.43
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and 716.8 719.8 3.0 1.0 4.17
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and 722.1 724.2 2.1 0.8 8.38
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CP009W2 5176 1568 241 -45 156.2 160.4 4.2 2.8 9.32
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and 164.8 171.3 7.0 4.4 8.85
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and 179.2 187.4 8.2 5.0 3.32
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(i)Results have had top cut of 35 g/t applied
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 2,500 km2. Crocodile Gold is currently mining from the Howley, North Point and Princess Louise open pit mines and the Brocks Creek underground 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 3.09 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 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 which covers a five kilometre strike length of a 25 kilometre trend.
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.
All Intersections are from half diamond core.
Mean grades have been calculated on a minimum of 2m interval, 0.7g/t lower cut-off and no upper cut-off grade applied (unless stated). Internal dilution included and calculated to ensure interval is greater than 2.0g/t.
All intersections are down hole intervals.
All deviations have been verified by down hole camera and or gyro probe survey.
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.
NOTE: To view Figures 1-5, please visit the following link - http://media3.marketwire.com/docs/Figures12345.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
www.crocgold.com