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Re: News Releases - Wednesday, April 14, 2010
Crocodile Gold Intersects 4.9 G/T Au Over 16 Metres at Cosmo
Project 300 Metres North of Existing Resources
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April 14, 2010 - Crocodile Gold Corp. (TSX:CRK) (OTCQX:CROCF)
(Frankfurt:XGC) ("Crocodile Gold" or the "Company") is pleased to
announce the latest
Diamond drill results from its Cosmo project in the
Northern Territory of Australia (Figure 1). The project is currently the site of an ongoing
Diamond drill program which is part of the recently expanded US$23 million
exploration program being conducted on the Company's extensive
landholdings in the Northern Territory (refer to Crocodile Gold press
release dated March 22, 2010). Please visit www.crocgold.com to view figures.
Highlights of these results are:
- Hole CP03W1 intersected 4.9 g/t Au over 15.8 metres (true width 12.7 metres), which included a higher grade interval of 11.1 g/t Au over 4.8 metres (true width 3.9 metres);
- The mineralization in this hole is within the Western Lodes and is located more than 300 metres north of the current NI 43-101 resources;
- This intersection was at a vertical depth of approximately 675 metres and is the deepest intersection of Western Lode mineralization to date, and more than 300 metres below the base of current resources;
- Very limited drilling has taken place between this intersection and existing resources suggesting the potential to expand resources;
- Mineralization remains open along strike to the north, at depth and towards surface;
- Hole GFG001W1 intersected 4.3 g/t Au over 15.4 metres (true width 9.0 metres) and 3.3 g/t Au over 7.50 metres (true width 5.0 metres);
- This intersection was encountered as part of the infill
Diamond drilling program and is important since it confirms continuity of mineralization and grade;
- The intersection is approximately 80 metres vertically above the recently announced intersection in hole GFG001 of 5.2 g/t Au over 22 metres (refer to Crocodile Gold press release dated February 25, 2010).
Hole CP03W1 was drilled as part of the step out drilling program
designed to test for extensions of mineralization and was located
between previously reported holes CP01 and CP05 (refer to Crocodile
Gold press release dated February 25, 2010). The hole was located to
intersect both the Western and Eastern Lodes, with the latter being the
most significant contributor to the total Cosmo resources, and to date
the Western Lodes being less explored and a less significant component
of the resources.
As illustrated in Figures 2 and 3, the hole intersected
significant mineralization along strike and more than 300 metres to the
north of the currently defined limits of the Western Lodes, with the
principal intersection of 4.9 g/t Au over 15.8 metres (true width 12.7
metres) which included a higher grade interval of 11.1 g/t Au over 4.8
metres (true width 3.9 metres). Limited drilling has taken place in the
area from the northern boundary of the Western Lodes resource to the
intersection in CP03W1, consequently it is believed that there is a
strong possibility of defining additional mineralization in the Western
Lodes to the north of currently defined resources. Mineralization also
continues to be open to the north of this latest intersection, and also
at depth and towards the surface.
This hole did not intersect the Eastern Lodes owing to technical
difficulties.
Diamond drilling continues with one rig dedicated towards
identifying extensions to the Cosmo mineralization in both the Eastern
and Western Lodes.
Hole GFG001W1 was a wedge hole from (previously released) hole GFG001
and was completed as part of the infill drilling program which is
continuing with one dedicated
Diamond drill. The objective of this
program is to upgrade the confidence level of the resources and to
increase overall reserves. Initially the focus has been on the area of
inferred resources of the Eastern Lodes mineralization in order to
upgrade a significant quantity to measured and indicated resources
(Figure 3). Hole GFG001W1 intersected the Eastern Lodes mineralization
approximately 80 metres vertically above GFG001. Two principal
intersections were obtained including 4.3 g/t Au over 15.4 metres (true
width 9.0 metres) and 3.3 g/t Au over 7.5 metres (true width 5.0
metres). This hole is significant since, in conjunction with hole
GFG001, it further demonstrates the continuity of the inferred
resources at depth, and therefore the ability to upgrade some of these
resources into the indicated category. In addition these two holes
illustrate that mineralization is still open at depth.
In releasing these results, President and CEO, Mike Hoffman, stated,
"We are extremely excited by these new results as they demonstrate the
continuity of the high grade Cosmo mineralization and the potential to
significantly expand the resources. We have demonstrated that
mineralization continues at least 400 metres further north than the
current resources, and that it also remains open at depth and locally
towards the surface. Crocodile Gold is still on target to commence
underground production from Cosmo in the second half of 2011.
Development of the access portal is expected to commence by the end of
June 2010."
Table 1: Results of Current Drilling and Historic Drilling not Included
in Resource Estimate
Hole #: GFG001W1
From: 498.6m
To: 514.0m
Total Width: 15.4m
True Width: 9.0m
Grade: 4.3 g/t Au
and
Hole #: GFG001W1
From: 530.5m
To: 538.0m
Total Width: 7.5m
True Width: 5.0m
Grade: 3.3 g/t Au
Hole #: CP03W1
From: 675.7m
To: 691.5m
Total Width: 15.8m
True Width: 12.7m
Grade: 4.9 g/t Au
including
Hole #: CP03W1
From: 675.7m
To: 680.5m
Total Width: 4.8m
True Width: 3.9m
Grade: 11.1 g/t Au
Qualified Person
Alfred John Gillman of Odessa Resources Pty Ltd 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 core was assayed at Northern Australian Laboratories (NAL).
Results are based on 50g fire assays.
Face sampling reverse circulation drilling (1m intervals).
All intersections are downhole intervals.
Downhole surveying by downhole camera.
Collar co-ordinates confirmed by survey pick-up
Quality control procedures included blasts of compressed air to clean
jaw and roll crushers between samples, a barren flush of river sand to
clean bowls in between samples, laboratory duplicate samples undertaken
at a rate of 1 in 10 and the insertion of NAL internal standards to
monitor performance.
About Crocodile Gold
Crocodile Gold is a Canadian company with the Howley and Brocks Creek
operating gold mines in the Northern Territory of Australia and a land
package of over 3,500km2. Crocodile Gold announced its first gold pour
in December 2009 at its Union Reefs mill, started development work at
the Tom's Gully underground mine in Q1 2010 and has commenced
activities at Cosmo to prepare it for underground development beginning
in mid-2010 with full production expected by the end of 2011. Crocodile
Gold has two mills, including the 8,000 tonne per day Union Reefs Mill
and the 800 tonne per day Tom's Gully mill. Crocodile Gold has 3.09
million ounces of NI 43-101 compliant measured and indicated resources
(42.9 million tonnes at an average grade of 2.3 g/t gold) and 1.94
million ounces of inferred resources (26.7 million tonnes at an average
grade of 2.3 g/t gold) (See Management Information Circular dated
October 5, 2009 and Crocodile Gold Press Releases dated September 8,
2009 and January 25, 2010). The Company has an aggressive exploration
program in place and is drilling on several key properties. There are
numerous exploration targets that the Company is prioritizing.
For further information, please contact:
Michael Hoffman
President and CEO
Crocodile Gold Corp.
Tel: 416-861-2964
Ashleigh Clelland
Manager, Investor Relations
Crocodile Gold Corp.
Tel: 416-861-5899
info@crocgold.com
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.
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Copyright (c) 2010 CROCODILE GOLD CORP. (n/a) All rights reserved.
For more information visit our website at http://www.crocgold.com/ or
send mailto:info@crocgold.com
Message sent on Wed Apr 14, 2010 at 5:23:38 AM Pacific Time
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