Crocodile Gold Drilling Defines a Higher Grade Core at the Cosmo Underground Mine Including 8 Metres at 15.69 Grams Per Tonne Gold
TORONTO, ONTARIO -- (Marketwire) -- 11/10/11 -- Crocodile Gold Corp. (TSX: CRK)(OTCQX: CROCF) (FRANKFURT: XGC) ('Crocodile Gold' or the 'Company') is pleased to report that delineation drilling at the Cosmo Underground Mine has identified additional higher grade intersections into the 100 Lode located in the hanging wall of the Cosmo East Zone. These results have lead to the identification of a core of higher grade material that is expected to improve the near term mine plan. As well, drill results have provided a new understanding of the geological controls in this style of mineralization.
Highlights from the recent underground definition drilling include intersections of:
-- 8 metres of 15.69 g/t Au in hole CE102516
-- 6 metres of 11.40 g/t Au in hole CE102513
-- 3 metres of 13.29 g/t Au in hole CE102510
Crocodile Gold has been operating two underground diamond drills as part of a delineation drilling program between the 1020 to 1025 levels in the 100 Lode. The results from these drill holes confirm the existence of a higher grade core immediately below the F1 Fault. The top of this new zone is located just above the previously developed decline position (Figure 1). Crocodile Gold is now working to update the mineral resource model in this area and will undertake mine planning studies to ascertain if the mine schedule can be improved by bringing forward additional ore from this higher grade core in the short to medium term.
Commenting on the results, Chief Operating Officer David Keough stated, 'To date, the delineation program has been successful at confirming grades at Cosmo and, in this case, revealed a higher grade core that was not previously known to us. The identification of this zone will play a major role in the success of the Cosmo underground mine plan.'
In addition to this discovery, the F1 Fault has been found to crosscut the higher grade core and it is interpreted that the fault is a major control on the mineralization as the mineralization plunges parallel to and runs in close proximity to this fault. Mineralization on the hanging wall of the F1 Fault was identified in historic drilling and priority will be given to further defining this area during the coming months. The improvement in gold grades can be seen in the current diamond drilling results (Table 1).
Underground definition drilling has also targeted the ore zone on the footwall of the F1 Fault. The historical Cosmo Pit mined only a small fraction of mineralization in the footwall below the F1 Fault so the higher grade tenor of the mineralization immediately below and adjacent to this fault was not recognized by previous operators and subsequent drill programs.
Craig Pridmore, Chief Geologist, commented, 'the recognition of the importance of these cross faults and the orientation of the carbonaceous contacts on the control of the higher grade mineralization at Cosmo will be tested in other geological domains of the ore body. In addition, ongoing delineation drilling is continuing to test this newly defined higher grade core at depth.'
Table 1: 100 Lode Delineation Drilling Results
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Hole ID Location From To Width True Grade
(m) (m) (m) Width (m) (g/t au)
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CE102003 Cosmo UG 100 Lode 63.2 66.1 2.9 2.3 3.18
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CE102005 Cosmo UG 100 Lode 64 67.6 3.6 3.2 2.56
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CE102006 Cosmo UG 100 Lode 63.1 67.4 4.3 3.4 2.33
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CE102008 Cosmo UG 100 Lode 69.7 70.8 1.1 0.8 .080
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CE102009 Cosmo UG 100 Lode 79.6 82 2.4 1.7 3.36
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CE102012 Cosmo UG 100 Lode 70.3 73 2.7 2.0 0.81
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CE102014 Cosmo UG 100 Lode 80 84 4 3.0 0.67
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CE102509 Cosmo UG 100 Lode 119.4 134 14.6 10.2 1.52
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CE102510 Cosmo UG 100 Lode 102 105 3 2.8 13.29
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CE102511 Cosmo UG 100 Lode 111 118 7 6.3 7.31
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CE102512 Cosmo UG 100 Lode 100 108 8 7.2 7.39
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CE102513 Cosmo UG 100 Lode 102 108 6 5.6 11.40
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CE102514 Cosmo UG 100 Lode 111.4 117 5.6 4.5 4.33
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CE102515 Cosmo UG 100 Lode 98.8 107 8.2 7.4 4.93
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CE102516 Cosmo UG 100 Lode 102 110 8 7.2 15.69
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CE102517 Cosmo UG 100 Lode 109.4 115.3 5.9 4.7 7.47
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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 National Instrument 43-101 ('NI 43-101') compliant Measured and Indicated mineral resources and 2.14 million ounces of Inferred mineral resources. 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/Howley corridor, the Union Reef project area, and the Maud Creek Deposit.
For additional information, please visit our website www.crocgold.com. Follow us on Twitter (@crocgold_crk) or Facebook (facebook.com/CrocodileGoldCorp).
Qualified Person
Austin Hitchins, P.Geo, Project Geologist for Crocodile Gold Australia Operations is a 'qualified person' as such term is defined in NI 43-101 and has reviewed and approved the technical information and data included in this press release.
Notes:
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 across the lode.
6. All intersections are down-hole intervals.
7. All deviations have been verified by down-hole camera.
8. QA/QC ('Quality Assurance Quality Control') for these holes have been checked and verified through blind standards, lab repeats and barren flushes. Northern Australian Laboratories reports 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 Figure 1, please visit the following link: http://media3.marketwire.com/docs/CosmoFigure1.pdf
Contacts:
Crocodile Gold Corp.
Rob Hopkins
Manager, Investor Relations
416-861-5899
info@crocgold.com
www.crocgold.com
