Crocodile Gold's Iron Blow Massive Sulphide Deposit Returns Significant Assay Results: 2.7 g/t Gold and 89 g/t Silver (Au Eq 4.3 g/t) Over 142 Meters
TORONTO, ONTARIO -- (Marketwire) -- 03/12/12 -- Crocodile Gold Corp. (TSX: CRK)(OTCQX: CROCF)(FRANKFURT: XGC) ('Crocodile Gold' or the 'Company') is pleased to provide the following assay results from its Iron Blow base metal/precious metal project in Northern Australia. Highlights include:
-- 2.72 g/t Au and 88.95 g/t Ag, (Au eq 4.3 g/t) over 142.05 meters in hole
IBDH007, including 5.9 g/t Au; 481.6 g/t Ag (Au eq 14.7 g/t); 0.61% Cu
and 17% combined Pb/Zn over 20.3 metres and 24.0 g/t Au over 3.0m
-- 6.6 g/t Au, 306.6 g/t Ag, (Au eq 12 g/t), 0.34% Cu, and 11.4 % Pb/Zn
over 4.05m in hole IBDH021
Crocodile Gold's objective with the 2011 drilling was to gain a better understanding of the deposit's mineralization and expanding mineral resources. The Company will be recalculating resources for the Iron Blow deposit once it has finalized its interpretation of the mineralized zones. Table 1 summarizes assays of significance.
Recently completed drilling indicates that there is both a base metal and a precious metal system associated with massive sulphides and a peripheral gold enriched system that is associated with only very minor sulphides.
Mark Edwards, the Company's Manager of Geology and Exploration, commented 'Crocodile Gold's massive sulphide deposits represent an intriguing target for the Company because of their enrichment in gold and silver. The recently completed airborne VTEM survey is the ideal tool to locate additional concentrations of massive sulphides and subsequent exploration work can soon focus in on prioritized targets. The Iron Blow massive sulphides display a strong airborne EM response with a coincident magnetic anomaly caused by concentrations of pyrrhotite.'
The Iron Blow deposit has been known since 1873 and its oxide cap has been mined in the past for its precious metal content. Records indicate that 10,000t of oxide material grading 9.0g/t Au and 250g/t Ag as well as 25,000t of sulphide material grading 7.0g/t Au and 360g/t Ag were mined in the 1980s.
Recent drilling by past operators produced an inferred NI 43-101 compliant resource of 3.17 million tonnes grading 2.08g/t Au, 100.9g/t Ag, 0.19% Cu, 0.76% Pb and 3.28% Zn. The deposit was interpreted to consist of 6 separate lenses, which were open along strike and to depth.
In 2011, the Company also drilled its Mt. Bonnie project, another known massive sulphide deposit on the same stratigraphic horizon as the Iron Blow deposit. Assays are pending. A mineral resource statement is planned for the Mt. Bonnie deposit, which has seen past production from underground workings and a small open pit of past production in the 1980s amounting to 110,000 tonnes grading 7 g/t Au and 230 g/t Ag. A historic resource(i) consisting of 650,000 tonnes grading 1.7 g/t Au, 279 g/t Ag, 0.5% Cu, 2.0% Pb and 9.0% zinc has been reported.
Once all data has been compiled and interpretations completed Crocodile Gold will assess its base metal and precious metal deposits to determine their potential economic viability. The geology of the region is favourable for hosting massive sulphide deposits and a concerted exploration effort could greatly increase the resources available to the Company. Crocodile Gold will then determine its options with respect to this style of mineralization and its strategic importance to the Company's future mine plans.
(i)Historical estimates derived from the report prepared for Northern Gold, entitled 'Mt Bonnie and Iron Blow Projects, January 2005 prepared by Northern Gold NL, January 2005. This report was not prepared in accordance with currently accepted guidelines for the preparation of Mineral Resources and Mineral Reserves, and does not comply with National Instrument 43-101 ('NI 43-101') and are not considered by Crocodile Gold, as current mineral resources or mineral reserves. These resource estimates may have also been depleted by past mining, and although possibly demonstrative of the potential grade of the deposits, the historical estimates of tonnage and grade are not considered indicative of the remnant potential resource. A qualified person, as such term is defined under NI 43-101, has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves. Crocodile Gold is not treating the historical estimate as current mineral resources or mineral reserves and the historical estimate should not be relied upon.
Note: Gold equivalent grade is calculated by dividing the silver assay result by 55 and assuming 100% metallurgical recovery
Table 1: 2011 Drill Hole Assays
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Hole True Au_ Ag_ Cu Pb Zn
# From To M width ppm ppm % % %
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IBDH007 192.95 335 142.05 92.3 2.72 88.95 0.2 0.49 3.29
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incl. 192.95 213.25 20.3 13.2 5.89 481.58 0.61 3.1 13.92
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incl. 249.6 263.5 13.9 9.0 1.34 17.71 0.42 0.04 1.71
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incl. 269.35 292.05 22.7 14.8 2.36 28.6 0.46 0.24 3.76
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incl. 292.05 305.6 13.55 8.8 6.43 125.9 0.01 0.08 0.13
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incl. 327 329.5 2.5 1.6 5.13 0.36 0 0 0.02
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incl. 332 335 3 2.0 24.3 2.61 0 0.01 0.02
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IBDH008 388 398.2 10.2 6.6 1.06 1.2 0.02 0 0.82
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IBDH009 178 180 2 1.3 0.81 56.27 0.09 0.04 2.23
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and 203.48 208.15 4.67 3.0 0.73 15.16 0.08 0.09 1.33
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IBDH010 248.45 250.6 2.15 1.4 0.27 211.6 1.25 0.06 0.02
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IBDH011 0 NSV
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IBDH015 228 233.45 5.45 3.5 2.28 454.52 0.19 3.78 9.76
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and 250.03 264 13.97 9.1 0.68 53.34 0.16 0.46 9.23
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and 269.33 293.2 23.87 15.5 1.36 19.03 0.21 0.08 0.15
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Incl. 269.33 272.33 3 2.0 0.98 8.62 0.36 0.02 7.67
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IBDH016 207.05 210.55 3.5 2.3 0.46 40.73 0.14 0.59 3.12
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and 228 238 10 6.5 0.41 8.64 0.06 0.1 0.86
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IBDH017 0.6 19 18.4 12.0 0.48 29.92 0.03 0.17 0.2
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and 67.6 72.5 4.9 3.2 1.36 8.42 0.36 0.03 3.03
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IBDH018 143.8 144.83 1.03 0.7 0.95 54.3 0.14 0.33 3.39
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and 150.25 151.05 0.8 0.5 0.22 21.2 0.03 0.04 0.21
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IBDH019 NSV
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IBDH020 133 134.15 1.15 0.7 1.46 164.28 0.1 0.71 4.14
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and 149.5 157.5 8 5.2 0.78 59.09 0.17 0.72 2.13
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IBDH021 61.85 65.9 4.05 2.6 6.59 306.57 0.34 2.37 9
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and 73 79 6 3.9 1.17 8.36 0.02 0.08 0.44
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and 83 95.55 12.55 8.2 1.64 1.17 0.01 0.02 0.26
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and 102.25 108.6 6.35 4.1 2.97 121.28 0.51 0.76 7.71
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IBDH022 14.2 19 4.8 3.1 0.11 81.57 0.06 0.09 0.08
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NSV= No significant values. True width based on a preliminary interpretation
that true width is 65% of down hole width
Table 2: 2008 Re-calculated Drill Assay Results
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Hole True Au_ Ag_ Cu Pb Zn
# From To M width ppm ppm % % %
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IBDH001 104.7 108.6 3.9 2.5 0.7 5.62 0.18 0.01 1.59
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and 117 127.5 10.5 6.8 1.77 13.81 0.32 0.09 2.89
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incl. 124 127.5 3.5 2.3 1.03 15.06 0.22 0.1 6.34
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and 147.1 150 2.9 1.9 7.09 3.24 0 0.03 0.02
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IBDH002 104 115 11 7.2 2.6 97.8 0.15 0.48 3.22
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incl. 111.1 115 3.9 2.5 4.06 169.39 0.42 1.34 9.06
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and 158.6 180.45 22.15 14.4 1.48 7.45 0.24 0.09 0.9
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IBDH003 155 171 16 10.4 2.99 88.02 0.05 0.75 1.89
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and 200.84 224.95 24.11 15.7 1.16 29.68 0.29 0.21 2.17
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incl. 200.84 206.47 5.68 3.7 2 55.17 0.3 0.48 6.62
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and 230.95 236.1 5.2 3.4 0.7 17.21 0.16 0.12 2.51
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IBDH004 85.3 87 1.7 1.1 3.47 576.24 0.11 2.81 4.27
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and 114.68 124 9.32 6.1 0.68 0.5 0.04 0.07 1.52
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and 129.56 134.4 4.84 3.1 2.83 8.52 0.15 0.25 4.99
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IBDH005 195.83 230.43 34.6 22.5 1.47 31.27 0.26 0.22 2.99
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incl. 207.4 218 10.6 6.9 2.06 41.49 0.37 0.27 4.88
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IBDH006 94.94 240 145.06 94.3 1.68 162.55 0.13 1.3 4.02
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incl. 94.94 143.3 48.36 31.4 3.53 429.24 0.27 3.37 9.58
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incl. 94.94 114.1 19.16 12.5 5.43 748.31 0.34 5.79 15.33
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incl. 146 159 13 8.5 0.89 0.75 0 0.08 0.06
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incl. 189.1 202.52 13.42 8.7 2.73 165.19 0.34 1.3 9.74
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incl. 208.14 213.12 4.98 3.2 0.8 0.5 0.13 0.03 0.17
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incl. 227 240 13 8.5 1.01 18.69 0.01 0.17 0.06
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Table 3: 2008 and 2011 Drill Hole Co-ordinates
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Hole_ID Location Local Grid
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East North RL Depth
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IBDH001 Iron Blow 9973.4 10050.73 1122.2 182.4
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IBDH002 Iron Blow 10008.31 10047.9 1123.18 230.4
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IBDH003 Iron Blow 10044.93 10048.94 1125 275.4
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IBDH004 Iron Blow 9968.93 9998.16 1122 219.4
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IBDH005 Iron Blow 10043.33 9999.62 1123.7 315.4
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IBDH006 Iron Blow 10013.91 9948.58 1125.7 293.4
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IBDH007 Iron Blow 10070 9950 1122 422.3
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IBDH008 Iron Blow 10135 9950 1122 482.4
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IBDH009 Iron Blow 10000 9900 1122 280
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IBDH010 Iron Blow 10070 9900 1122 391.7
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IBDH011 Iron Blow 10140 9900 1122 482.8
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IBDH015 Iron Blow 10105 10000 1122 401.8
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IBDH016 Iron Blow 10105 10050 1124 350.5
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IBDH017 Iron Blow 9930 10050 1124 137.5
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IBDH018 Iron Blow 9953 9950 1122 181.3
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IBDH019 Iron Blow 9930 9900 1122 151
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IBDH020 Iron Blow 10035 10100 1124 260.8
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IBDH021 Iron Blow 9965 10100 1124 194.7
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IBDH022 Iron Blow 9893.84 10096.17 1124 101.8
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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 approved the technical information and data included in this press release.
Quality Assurance and Quality Control:
1. Drill samples were assayed at NTEL in Darwin
2. Gold Assay results are based on 50g fire assays, base metal analysis are from ICPMS (Inductively Coupled Plasma Mass Spectrometry)
3. All intersections from diamond samples are either NQ or HQ half-core.
4. Diamond sample intervals are determined using lithological controls or 1.0m whichever is larger
5. Mean gold grades have been calculated on a minimum of 1.0m interval, 0.5 g/t lower cut-off and maximum 3m internal dilution. No upper cut has been applied
6. All intersections are down-hole intervals.
7. All deviations have been verified by down hold camera.
8. QAQC for these holes has been checked and verified through blind standards, field duplicates, lab repeats and barren flushes. QAQC results are within expected limits.
About Crocodile Gold
Crocodile Gold is a Canadian company with operating gold mines in the Northern Territory of Australia with a land package of over 3,300 km2. Crocodile Gold is currently mining a number of open pits in the Howley Corridor. The Company is also developing the Cosmo underground mine. Ore is processed at the Union Reefs Mill with a capacity of 2.4 million tonne per year. Crocodile Gold has 3.175 million ounces of NI 43-101 compliant Measured and Indicated mineral resources and 2.14 million ounces of Inferred mineral resources (see the NI 43-101 compliant technical report entitled 'Report on the Mineral Resources and Mineral Reserves of the northern Territory Gold and Base Metals Properties for Crocodile Gold Corp.' by Fleur Muller, Mark Edwards and Heath Gerritsen dated April 4, 2011, filed under the Company's profile on SEDAR for the details regarding these mineral resource estimates). The Company has an extensive 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 Mine, the Union Reefs and Maud Creek project areas.
For additional information, please visit our website www.crocgold.com. Follow us on Twitter (@crocgold_crk) or Facebook (Crocodile Gold Corporation).
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/773525FIG.pdf
Contacts:
Crocodile Gold Corp.
Rob Hopkins
Manager, Investor Relations
416-861-5899
info@crocgold.com
www.crocgold.com