Crocodile Gold Intersects High-Grade Mineralization at The Crosscourse Deposit, Union Reefs: 8.89 Grams/Tonne Gold Over 12.3 Meters And 14.83 Grams/Tonne Gold Over 2.1 Meters
TORONTO, ONTARIO -- (Marketwire) -- 10/13/11 -- Crocodile Gold Corp. (TSX: CRK) (OTCQX: CROCF) (FRANKFURT: XGC) ('Crocodile Gold' or the 'Company') is pleased to announce additional high grade intersections from a drill hole at Crosscourse Deposit, Union Reefs. The intersections were found in a broad zone of medium grade mineralization and numerous sections of visible gold were seen throughout the significant core length beneath the Crosscourse pit. The entire 181.2 meter length from 389.2 to 570.4 meters returned an average grade of 1.81 g/t Au.Highlights of this drill hole include:
-- 8.89 g/t Au over 12.3 metres;
-- 4.51 g/t Au over 14.08 metres, including 16.2 g/t Au over 3.8 metres;
-- 13.28 g/t Au over 3.65 metres;
-- 14.83 g/t Au over 2.1 metres.
Management believes the Crosscourse deposit is an excellent target for the company to focus exploration efforts because of it's proximity to the Union Reefs mill. Additionally, permitting is in place and the underground infrastructure could be accessed from a single entry point from the base of one of the existing historical pits.
The expansion of resources to vertical depths of 300-400 meters will take a few months to complete but it is anticipated that an underground mining center at Crosscourse can be defined and brought into production fairly quickly, supporting the company's strategy to add low cost, high grade production to the near-term mine plan. A desktop study for the underground exploration program in 2012 is underway with initial concepts and costs expected to become available later this year.
Commenting on the results, Chief Operating Officer, David Keough stated: 'these continued high grade results support our short and medium term strategy to add quality, high grade ore to our Union Reefs mill. We believe the focus on adding higher grade ore to our production profile over the next few years will, in turn, positively affect our profitability by decreasing average cash costs.'
Drilling by past operators under the Crosscourse pit targeted the high-grade mineralization identified as the E-Lens (Figure 3). Drill intercepts from past operators on the E-lens below the pit bottom include: 11 metres @ 6.60 g/t Au, 36 metres @ 4.10 g/t Au and 16 metres @ 6.00 g/t Au. An historic mineral resource estimate for the Crosscourse E-Lens indicated 150,000 tonnes grading 4.3 g/t Au(i). The deepest intersection of 14.83 g/t Au over 2.1 meters is interpreted to be a possible depth continuation of a near surface western lodes defined by past operators that had a historic resource of 18,000 tonnes grading 14.56g/t Au(i) (a qualified person has not carried out the work required to classify the historical estimate as current mineral resources for Crocodile Gold and therefore Crocodile Gold is not treating the historical estimate as current mineral resources).
Past production from the Crosscourse pit amounted to 13,036,535 tonnes averaging 1.7 g/t Au producing over 700,000 ounces of gold. Approximately 83% of the gold from the Union Reefs open pits came from the Crosscourse pit.
Crocodile Gold will continue drilling at Union Reefs for the foreseeable future, including through the wet season, to quickly expand the resource base in this area. Figure 2 shows the diamond drilling to date and the new drill results being released today. Following completion of the drilling program, Crocodile Gold plans to update mineral reserve and mineral resource estimates.
The exploration team has designed the next phase of drilling to focus on the Prospect Deposit, an additional high grade deposit with similar benefits as Crosscourse. Past production from the Prospect Deposit amounted to 411,994 tonnes grading 1.6g/t Au to produce 21,242 ounces of gold.
An historic mineral resource calculation for the mineralization under the Prospect pit indicated 144,000 tonnes grading 11.7 g/t Au(i) to a depth of approximately 30 metres below the pit bottom (Figure 2, Figure 5). Note that a qualified person has not carried out the work required to classify the historical estimate as current mineral resources for Crocodile Gold and therefore Crocodile Gold is not treating the historical estimate as current mineral resources. A revised resource calculation will be produced at the end of 2011 and additional resource calculations will be formulated in 2012 when the deep drilling program is completed.
Crocodile Gold's exploration group is also looking at other deposits in the Union Reefs area including Orinoco, Wellington and Elizabeth. A drill program is planned for the Orinoco Deposit to determine if sufficient resources are present to include it in the Company's future mine plan. The Wellington and Elizabeth deposits have some interesting historic high-grade drill intercepts that need additional work to see if they can be expanded upon.
Table 1
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Local
Grid
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True Grade
Depth From To Width Width (g/t
Hole_ID Location East North RL (m) (m) (m) (m) (m) Au)
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URNDD02 Crosscourse 5154 6722 1193 633 389.2 401.5 12.3 9.84 8.89
and 408.5 426.1 17.6 14.08 4.51
Incl. 422.3 426.1 3.8 3.04 16.18
and 434.4 435.65 1.25 1.0 9.07
and 444 447.65 3.65 2.92 13.28
and 463 466 3 2.40 4.04
and 504 505.6 1.6 1.28 5.53
and 543.55 546.35 2.8 2.24 9.65
and 568.3 570.4 2.1 1.68 14.83
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(i)Historical estimates derived from the internal report titled 'Mine Closure Report, Union Reefs Gold Mine (Pine Creek)' prepared by Crosby, Q., Makar, B., Chen Chow, K., Sheehan, E., Davis, G., December 12, 2006. 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.
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. 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, and the Union Reef project area.
For additional information, please visit our website www.crocgold.com. Follow us on Twitter (@crocgold_crk) or Facebook (Crocodile Gold Corporation).
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.
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 HQ 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 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.
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/735538.pdf
Contacts:
Crocodile Gold Corp.
Rob Hopkins
Manager, Investor Relations
416-861-5899
info@crocgold.com
www.crocgold.com