Crocodile Gold Announces Initial
Uranium Resource Estimate at Thunderball Completed by
JV Partner Thundelarra
TORONTO, ONTARIO
-- (MARKET WIRE) -- 02/08/11 -- Crocodile
Gold Corp. (TSX: CRK) (OTCQX: CROCF) (FRANKFURT: XGC) ("Crocodile
Gold" or the "Company") is pleased to announce an initial JORC
compliant mineral resource estimate completed by its joint venture partner, Thundelarra Exploration Ltd ("Thundelarra") on the Thunderball
uranium prospect located within the Hayes Creek Project located
approximately 140 kilometres south of Darwin in the
Northern Territory of Australia.
The mineral resource
estimate was completed by SRK Consulting. The resource estimate is
based upon chemical assay data from 16 diamond and 39 reverse circulation drill
holes completed at Thunderball since the deposit was
discovered by Thundelarra in late 2008. All drill
sample data was aggregated into four metre composites
prior to modeling. All data composites with a grade above 0.40 % U3O8 were cut
to that level. Resource estimates were then calculated at lower cut-off grades
of 0.02% U3O8 and 0.04% U3O8 for each of the two parallel zones of
mineralization, as presented in Table 1 below.
Table 1: Thunderball Uranium Deposit Inferred Resource Estimate
(JORC compliant)
----------------------------------------------------------------------------
0.02% U3O8 Cut Off Grade 0.04% U3O8 Cut Off Grade
--------------------------------------------------------------
Contained Contained
Metal Metal
Grade (pounds Grade (pounds
Tonnes (% U3O8) U3O8) Tonnes (% U3O8) U3O8)
----------------------------------------------------------------------------
Lower Zone 848,000 0.0907 1,696,000 795,000 0.0945 1,656,000
----------------------------------------------------------------------------
Upper Zone 207,000 0.0343 157,000 34,000 0.0434 33,000
----------------------------------------------------------------------------
Total Inferred
Resource 1,056,000 0.0796 1,853,000 829,000 0.0924 1,689,000
----------------------------------------------------------------------------
The Thunderball
prospect has returned a number of high grade drill intercepts to date, however
the current drill hole spacing is considered to be insufficient to prove
continuity of this high grade mineralization. Consequently, a cautious approach
has been taken to the classification of the resource and a top cut applied to
limit the influence of the high grade intercepts. The 0.40 % U3O8 top cut
affected five data composites that had uncut average grades of up to 7.6% U3O8
and disproportionally increased contained metal by 200%. The uncut model
comprises 775,000 tonnes at an average grade of
0.3196% U3O8 for 5.5 million pounds of U3O8 (0.04% U3O8 lower cut).
Geological modeling
associated with the resource estimation has highlighted the potential to
identify repetitions of the existing mineralized zones at Thunderball.
In particular the contact between the Gerowie Tuff
and Zamu Dolerite, approximately 70 metres stratigraphically below
the Lower Zone resource, is considered a priority target.
The declaration of an
inaugural resource at Thunderball is an important
milestone in the development of Thundelarra's Hayes
Creek Uranium Project. Five prospects at Hayes Creek have now returned
significant drill intercepts and Thundelarra has
stated that in 2011 it will focus drilling on these targets with the aim of
upgrading one or more to resource status. Drilling will also be carried out at Thunderball to test
for repetitions of mineralization at depth and along strike from the current
resource. Thundelarra's objective is to define
sufficient uranium resources within the project area to justify establishment
of a central processing facility that can treat ore from several satellite
deposits. The above information regarding the Thunderball
deposit and Thundelarra's plans for exploration of
the deposit have been taken from Thundelarra's public
disclosure.
Crocodile Gold has an agreement with Thundelarra in which Thundelarra
has the right to explore for uranium on certain Crocodile
Gold tenements while Crocodile
Gold retains all other metal rights including precious metals and base
metals. Crocodile Gold has a
30% free carried interest until development in the uranium rights on the
Exploration Lease where Thunderball is located while Thundelarra holds the remaining 70% interest. The location
of the properties included in the joint venture and of the Thunderball
deposit can be viewed in Figure 1 below.
Further details on this
press release can be viewed at the Thundelarra web
site at http://www.thundelarra.com.
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 2,500 km2. Crocodile
Gold is currently mining from the Howley,
North Point and Princess Louise open pit
mines and the Brocks Creek underground mine. Crocodile
Gold 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 3.5 million ounces of NI 43-101 compliant measured and indicated
resources (57 million tonnes at an average grade of
1.9 g/t gold) and 2.2 million ounces of inferred resources (38 million tonnes at an average grade of 1.8 g/t gold) (see the
Amended Annual Information Form dated November 5, 2010 and Crocodile
Gold press releases dated September 8, 2009, January
25, 2010, October 14, 2010 and December 2, 2010).
The Company has an exploration program in place with a main focus on the Cosmo/Howley
corridor which covers a five kilometre strike length
of a 25 kilometre trend.
Qualified Persons
The information in this
report relating to mineral resources is based on information compiled by Mr.
Peter Gleeson, BSc Hons (Mining Geology), MSc
(applied Geostatistics/Mining Geology), AIG, GSA, who
has more than five years experience in estimation of
mineral resources and ore reserves. Mr Gleeson is a
fulltime employee of SRK Consulting and has sufficient experience
relevant to the assessment of this style of mineralisation
to qualify as a Competent Person as defined in the "Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves"
(JORC Code). Mr Gleeson consents to the inclusion in
the report in the form and context in which it appears.
The details contained in this report that pertain to exploration results, ore and mineralization,
other than the Thunderball JORC Compliant Resource
Estimate, are based upon information compiled by Mr. Brian Richardson.
Mr. Richardson 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. Mr. Richardson is a Member
of the Australasian Institute of Mining and Metallurgy (AUSIMM) and
has sufficient experience which is relevant to the style of mineralization and
type of deposit under consideration and to the activity which he is undertaking
to qualify as a Competent Person as defined in the December 2004
edition of the "Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves" (JORC Code). Mr. Richardson consents
to the inclusion in this report of the matters based upon his information in
the form and context in which it appears.
Cautionary Note
Certain information set
forth in this press release contains "forward-looking statements",
and "forward-looking information" under applicable securities laws,
including management's assessment of Crocodile
Gold's targeted production, future plans, operations, weather forecasts
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 those risks described in the
annual information form of the Company. 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 release, please visit the following link: http://media3.marketwire.com/docs/CRKfigures.pdf.
Contacts:
Crocodile Gold Corp.
Michael Hoffman
President and CEO
416-861-2964
Crocodile Gold Corp.
Ashleigh Clelland
Manager, Investor Relations
416-861-5899
info@crocgold.com
Source: Crocodile
Gold Corp.
.