Crocodile Gold Announces Encouraging Gold Drill Intercepts From JV Partner Thundelarra-Intersects 4.96 g/t Au Over 12 Metres
TORONTO, ONTARIO -- (Marketwire) -- 09/30/10 -- Crocodile Gold Corp. (TSX: CRK)(OTCQX: CROCF)(FRANKFURT: XGC) ('Crocodile Gold' or the 'Company') is pleased to announce the latest diamond and reverse circulation drill results completed by its joint venture partner, Thundelarra Exploration Ltd ('Thundelarra') on the Thunderball prospect located approximately 140 kilometres south of Darwin in the Northern Territory of Australia.
Highlights from hole TPCRC066 at the Thunderball prospect include:
-- 4.96 g/t gold over 12 metres including 10.90 g/t gold over 4 metres from
66 metres down the vertically drilled hole. Crocodile Gold has 100% of
the gold rights on this tenement.
Mark Edwards, Geology Manager of Crocodile Gold commented, 'These gold intercepts are significant as they represent the first significant gold assays received to date at the Thunderball prospect located within our Burnside tenement package, over which Crocodile Gold has 100% of the gold rights, near our existing mines. We look forward to working with Thundelarra to follow up on these encouraging gold intercepts.'
Hole TPCRC066 is located roughly south along strike from the current mining areas of Princess Louise and North Point, approximately 5.3 kilometres from Princess Louise and approximately 85 kilometres by road to the Union Reefs mill. The hole is located in an area of numerous past producing mines and approximately 3.4 kilometres to the north of the historic open pit called Golden Dyke which historically produced around 28,000 ounces of gold since the 1980s (refer to Figure 3 below). Approximately 41,000 ounces have been mined from pits in the area including Golden Dyke, Afghan Gully, Davis 2, Langley and Fisher Lode since the early 1980s.
In addition, several significant uranium intercepts were encountered including:
-- 0.59% U3O8 over 7.85 metres including 2.50% U3O8 over 1.00 metres in
hole TPCRD069
-- 0.86% U3O8 over 15.00 metres including 1.40% U3O8 over 9.00 metres and
11.30% U3O8 over 1.00 metres in hole TPCRD093
Crocodile Gold has an agreement with Thundelarra, signed in September 2007, in which Thundelarra has the right to explore for uranium on certain Crocodile Gold tenements while Crocodile Gold retains all other metal rights including precious metals and base metals. Crocodile Gold has 100% of the gold rights for drill results reported on the tenements in this press release. Thundelarra holds a 70% interest in the uranium rights until development and must incur a minimum AUS$250,000 in exploration expenditures per year for the first three years and has the right to apply for a mining tenement on behalf of the joint venture. Crocodile Gold has a 30% free carried interest in the uranium rights until development through the agreement with Thundelarra. The location of the properties included in the joint venture and of the Thunderball prospect can be viewed in Figure 1 below. A drill plan is shown in Figure 2 below.
Table 1: Thunderball Uranium Drill Results
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Grid Coordinates Survey Data Interval
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From To Interval Grade
Hole ID Easting Northing Azimuth Dip (m) (m) (m) (% U3O8)
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TPCRD062 772738 8501398 Vertical 94.00 97.10 3.10 0.18
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TPCRD064 772768 8501415 Vertical 9.00 12.00 3.00 0.01
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and 14.00 15.00 1.00 0.01
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TPCRD065B 772744 8501447 Vertical 118.75 122.00 3.25 0.33
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Including 119.75 120.25 0.50 1.30
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and 125.00 127.50 2.50 0.04
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TPCRD069 772749 8501506 Vertical 34.00 37.00 3.00 0.01
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and 142.00 143.00 1.00 0.01
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and 145.00 146.00 1.00 0.02
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and 150.40 158.25 7.85 0.59
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including 151.40 152.40 1.00 2.50
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and 162.00 163.00 1.00 0.11
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TPCRD093 772745 8501470 Vertical 135.00 150.00 15.00 0.86
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including 141.00 150.00 9.00 1.40
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Including 146.00 147.00 1.00 11.30
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TPCRD094 772731 8501458 Vertical 128.15 130.00 1.85 0.08
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TPCRC095 772680 8501590 Vertical 99.00 100.00 1.00 0.01
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and 103.00 108.00 5.00 0.01
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TPCRC096 772755 8501540 Vertical 43.00 57.00 14.00 0.05
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and 60.00 69.00 9.00 0.03
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TPCRC097 772751 8501573 Vertical 59.00 61.00 2.00 0.01
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and 90.00 91.00 1.00 0.01
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TPCRC098 772766 8501560 Vertical 47.00 50.00 3.00 0.02
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TPCRC099 772759 8501592 Vertical 71.00 72.00 1.00 0.01
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and 85.00 87.00 2.00 0.02
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TPCRC100 772700 8501434 Vertical 136.00 137.00 1.00 0.02
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TPCRC101 772697 8501472 Vertical NSR
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TPCRC102 772789 8501740 129 -70 194.00 202.00 8.00 0.09
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TPCRC103 772235 8501034 Vertical NSR
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Notes:
-- Datum is MGA Zone 52 GDA94, collar positions recorded using GPS
-- NSR equals No results above 100ppm U3O8
-- Holes designated TPCRC were drilled by reverse circulation
-- Holes designated TPCRD were pre-collared by reverse circulation with
diamond core tails through the target zone
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 Territory Environmental Laboratories (NTEL).
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 the Figures associated with this press release, please visit the following link: http://media3.marketwire.com/docs/crk_09_30_2010_figures.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