Crocodile Gold Continues to Extend Mineralization at Cosmo-Intersects 7.69 G/T Au Over 19.1 Metres
TORONTO, ONTARIO -- (Marketwire) -- 10/20/10 -- 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) from holes CP010 and CP011. Results indicate that mineralization continues to extend down dip of the existing mineral resource on the eastern lodes of the Cosmo structure. Crocodile Gold anticipates a mineral resource expansion at Cosmo incorporating these results to be announced by early 2011.
Highlights of these drill results include:
-- 7.69 g/t Au over 19.1 metres including 14.67 g/t Au over 2.3 metres,
14.47 g/t Au over 2.9 metres and 13.41 g/t Au over 3.0 metres in hole
CP011
-- 5.42 g/t Au over 9.1 metres including 11.20 g/t Au over 1.6 metres and
8.80 g/t Au over 1.8 metres in hole CP010
In releasing this information, Mike Hoffman, President and Chief Executive Officer of Crocodile Gold commented, 'Our exploration efforts at Cosmo during the past year have been successful in showing the significant upside potential in the size of the Cosmo deposit. We believe these results combined with previous drill results should add further confidence to the mineral resource estimate at Cosmo.'
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. A drill plan showing the location of holes CP010 and CP011 is shown in Figure 2 below, which also shows the location of recent previously released holes (refer to Crocodile Gold press release dated September 28, 2010).
Crocodile Gold is currently developing the Cosmo underground mine with production expected in mid-2011. The Cosmo mine by itself 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 longer holes from surface.
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
----------------------------------------------------------------------------
Grade
(g/t
Hole ID Grid Coordinates Survey Data Interval Au)
-------------------------------------------------------------
True
Local Local From Interval Width
Easting Northing Azimuth Dip (m) To (m) (m) (m)
----------------------------------------------------------------------------
CP010 5270 1617 230 -53 359.5 368.6 9.1 5.9 5.42
----------------------------------------------------------------------------
including 361.4 363.0 1.6 1.1 11.20
--------- -----------------------------------
including 365.4 367.2 1.8 1.2 8.80
--------- -----------------------------------
and 375.7 381.9 6.2 4.1 2.60
--------- -----------------------------------
and 397.6 400.7 3.1 2.1 2.39
----------------------------------------------------------------------------
CP011 5270 1619 268 -55 373.0 392.1 19.1 11.9 7.69
----------------------------------------------------------------------------
including 373.5 375.8 2.3 1.5 14.67
--------- -----------------------------------
including 377.5 380.4 2.9 1.8 14.47
--------- -----------------------------------
including 384.2 387.2 3.0 2.0 13.41
--------- -----------------------------------
and 406.5 409.0 2.5 1.3 2.06
--------- -----------------------------------
and 420.5 435.6 15.1 8.6 2.19
--------- -----------------------------------
and 443.6 453.5 9.9 5.4 3.95
--------- -----------------------------------
including 450.0 452.5 2.5 1.3 7.50
----------------------------------------------------------------------------
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 km(2). 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 3.31 million ounces of NI 43-101 compliant measured and indicated resources (47.5 million tonnes at an average grade of 2.2 g/t gold) and 1.84 million ounces of inferred resources (25.6 million tonnes at an average grade of 2.2 g/t gold) (see Annual Information Form dated March 31, 2010 and Crocodile Gold press releases dated September 8, 2009, January 25, 2010 and October 14, 2010). The Company has an exploration program in place with a main focus 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 targeted production, 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 four figures associated with this Press Release, please visit the following link:
http://media3.marketwire.com/docs/cosmosection.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