Crocodile Gold Extracts First Development Ore from Cosmo Underground Mine on Schedule and Budget
- Production to Ramp Up Through the Fourth Quarter of 2011- 16 Meters at 10.7 Grams per Tonne Intersected in Cosmo Mine Delineation Drilling
TORONTO, ONTARIO -- (Marketwire) -- 09/15/11 -- Crocodile Gold Corp. (TSX: CRK)(OTCQX: CROCF)(FRANKFURT: XGC) ('Crocodile Gold' or the 'Company') is pleased to announce that it has extracted the first underground ore from the Cosmo underground mine on schedule and on budget. This initial ore was extracted from the 1055 level access during ore development drives as part of the planned mine development. It was processed at the company's Union Reefs processing facility.
Crocodile Gold has successfully reached the goal of extracting and processing development ore from the Cosmo underground in the third quarter and management is confident that the company will continue to meet development and production goals. Plans are now being put in place to ramp-up ore production through the fourth quarter of 2011 and should reach the full production run rate in the second half of 2012. The Company also reports that the associated capital works and underground development projects are proceeding according to plan and within budget estimates.
During the current development at Cosmo:
- Underground development totaled over 1,500 lateral metres;
- 99% of the open pit has been dewatered;
- Three mining levels have been accessed;
- Surface and underground infrastructure construction saw the completion of the mine planning office complex, medical and security center, change houses, core shed, workshop, and surface electrical reticulation.
Joe Ranford, Crocodile Gold's General Manager of Northern Territory Operations commented: 'I am pleased that we have achieved the first significant milestone for this project with extraction and processing of the first development ore. The underground team is focused on continuing the outstanding development performance it has achieved and we plan on completing the main decline to lower levels, setting up the mine's main ore stopes and reaching targeted ore production levels on schedule'.
The priority will now be to drive the main decline access to the bottom of the first mining block and establishing the primary ventilation system with secondary egress. Working with its consultants, Crocodile Gold is continuing to optimize the design for the Cosmo underground mine to ensure the early delivery of high quality ore tonnage and grade to the mill, while maximizing recovery of the ore.
As part of upcoming development plans, Crocodile Gold plans to complete the following:
-- The installation of a permanent dewatering system at the bottom of the
pit (including water treatment capacity);
-- Completion of a fourth mining level;
-- Completion of the ventilation system;
-- Re-furbishing and upgrading of the Cosmo accommodation village,
including the delivery and installation of additional accommodation
blocks.
Further to these positive outcomes, underground ore definition diamond drilling will continue with a second high capacity underground diamond drill due to commence drilling shortly. Holes drilled on the 1035 and 1025 levels (Table 1) are confirming the known resource with ore widths and grades as expected from previous modelling. Highlights from the underground definition drilling include intersections of 16 meters at 10.7 g/t, 8.3 meters at 6.52 g/t, 9 meters at 5.26 grams per tonne and 13.7 meters at 3.15 g/t.
Table 1
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approx. true
From To Width width Grade
Hole _ID Location (m) (m) (m) (m) (g/t Au)
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CE102507 Cosmo UG 87.9 98 10.1 7.6 3.66
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inc 95 97 2 1.5 6.31
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104.8 109 4.2 3.2 3.00
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CE102508 Cosmo UG 96 104 8 5.6 2.63
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inc 100 103 3 2.1 5.49
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108.7 124.7 16 11.2 10.70
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CE103501 Cosmo UG 31 39.3 8.3 8.3 6.52
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CE103502 Cosmo UG 31.7 39.3 7.6 6.8 3.44
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CE103503 Cosmo UG 36.7 45 8.3 6.6 2.60
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inc 36.7 39 2.3 1.8 5.53
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CE103504 Cosmo UG 42 47 5 3.5 3.10
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inc 44 46 2 1.4 5.18
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CE103505 Cosmo UG 34 41 7 6.0 5.99
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CE103506 Cosmo UG 29 34 5 4.3 4.53
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CE103507 Cosmo UG 25 28 3 2.7 2.34
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31 37 6 5.4 3.87
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inc 33 35 2 1.8 5.50
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CE103508 Cosmo UG 37 46.2 9.2 7.4 5.26
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CE103509 Cosmo UG 47.3 61 13.7 9.6 3.15
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inc 51 54 3 2.1 5.29
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inc 58 61 3 2.1 5.51
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CE103510 Cosmo UG 35.7 38 2.3 1.4 2.71
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56 64 8 4.8 6.34
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71 73.5 2.5 1.5 2.66
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CE103511 Cosmo UG 27 29.8 2.8 2.0 2.10
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42 44 2 1.4 2.19
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CE103512 Cosmo UG 27 29 2 1.8 2.34
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32 34 2 1.8 3.88
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41 43 2 1.8 6.24
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Additionally, recent results from the 1055 level Zone A (Table 2) are encouraging as these holes targeted an area with little information from previous drilling campaigns (Figure 4). Zone A provides a potential increase in reserves outside the existing mine plan, in a readily accessible position from current development.
Table 2
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approx. true
From To Width width Grade
Hole _ID Location (m) (m) (m) (m) (g/t Au)
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CE1055001 Cosmo UG 56 61 5 4.5 2.67
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CE1055002 Cosmo UG 54 56 2 2 4.44
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CE1055003 Cosmo UG NSI
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CE1055004 Cosmo UG 59 61 2 1.6 4.73
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CE1055005 Cosmo UG 22 25 3 2.1 2.27
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CE1055006 Cosmo UG (iii)
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CE1055007 Cosmo UG (iii)
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CE1055008 Cosmo UG (iii)
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CE1055010 Cosmo UG 28 31 3 2.7 2.06
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52 55 3 2.7 2.05
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CE1055011 Cosmo UG 26 28 2 1.6 2.00
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CE1055012 Cosmo UG 12 14 2 1.8 2.01
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22 25 3 2.7 2.27
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CE1055013 Cosmo UG (iii)
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CE1055014 Cosmo UG (iii)
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CE1055015 Cosmo UG (iii)
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CE1055018 Cosmo UG 56 63 7 5.6 5.08
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Earlier this year, Leighton Contractors Resource Division was awarded a three year contract for the mining and development of the Cosmo underground mine starting in March 2011. The experience and capacity of this major Australian contracting firm is apparent with the excellent development rates achieved to date.
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 2,700 km2. Crocodile Gold is currently mining from the Howley open pit mine. The Company 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 3.175 million ounces of NI 43-101 compliant Measured and Indicated mineral resources (51.85 million tonnes at an average grade of 1.9 g/t gold) and 2.14 million ounces of Inferred mineral resources (36.35 million tonnes at an average grade of 1.8 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 drilling focus is currently on the Cosmo/Howley corridor and the Union Reef project area. Additional drilling will take place in the near future on its base/precious metal assets as well as the Maud Creek deposit.
Qualified Person
Craig Pridmore, P. Geo 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.
Notes relating to Tables 1 and 2:
1. Drill samples were assayed at Northern Australian Laboratories (NAL).
2. Assay results are based on 50g fire assays.
3. All intersections from diamond samples are NQ Full core and NQ half-
core.
4. Diamond sample intervals are determined using lithological controls or
1.0m whichever is larger.
5. Mean grades have been calculated on a minimum of 2.0m interval, 0.7 g/t
lower cut-off and maximum 3m internal dilution. The Minimum interval
grade is 2g/t with no upper cut grade applied.
6. All intersections are down-hole intervals.
7. All deviations have been verified by down-hole camera or down-hole Gyro.
8. QA/QC ('Quality Assurance Quality Control') for these holes has been
checked and verified through blind standards, lab repeats and barren
flushes. QA/QC results are within expected limits.
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 Figures associated with this press release, please visit the following link: http://media3.marketwire.com/docs/crk_Figure1.pdf.
Contacts:
Crocodile Gold Corp.
Rob Hopkins
Manager, Investor Relations
416-861-5899
info@crocgold.com