TORONTO, ONTARIO -- (Marketwire) -- 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)
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0.02% U3O8 Cut Off Grade 0.04% U3O8 Cut Off Grade
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Contained Contained
Metal Metal
Grade (pounds Grade (pounds
Tonnes (% U3O8) U3O8) Tonnes (% U3O8) U3O8)
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Lower Zone 848,000 0.0907 1,696,000 795,000 0.0945 1,656,000
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Upper Zone 207,000 0.0343 157,000 34,000 0.0434 33,000
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Total Inferred
Resource 1,056,000 0.0796 1,853,000 829,000 0.0924 1,689,000
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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
