TORONTO, ONTARIO--(Marketwire - Aug. 30, 2012) - Crocodile Gold Corp. (CRK.TO)(CROC)(XGC.F) ("Crocodile Gold" or the "Company") is pleased to announce high-grade intersections from drill holes completed on the Phoenix ore body structure at the Fosterville Gold Mine (FGM) in the State of Victoria. The Company currently has one surface diamond drill rig and one underground drill rig conducting exploration work on various targets at FGM.
Highlights of the drilling include:
|Phoenix Ore Body drill intercepts on section 6600N:|
|•||23.36 g/t Au over 5.70m in hole UDE084|
|•||6.21 g/t Au over 6.10m in hole UDE084A|
|Other previous Phoenix Ore Body drill intercepts in the area:|
|•||17.56g/t Au over 3.7m in hole SPD514E (6500N)|
|•||6.54 g/t Au over 7.0m in hole UDE041 (6750N)|
|•||5.86 g/t Au over 7.6m in hole UDE040 (6750N)|
Full drill results can be found in Table 2.
Phoenix Ore Body Exploration Program
Crocodile Gold has drilled 100 metres along strike (down-plunge) from the existing Phoenix ore body mineral resource block and about 230 metres south of the Lower Phoenix mineral reserve block. (See Figures 1, 2 and 3) The drilling on section 6600N has identified a potentially significant gold mineralization over a 60-metre length down dip that is associated with the same fault structure that has been previously drilled a further 100 metres to the south where it appears to be strongly mineralized. There is no drilling on the Phoenix ore body south of section 6600N for a distance of 450 metres in strike length. Crocodile Gold expects to complete additional exploration drilling on the Phoenix ore body south of section 6600N as there is a large area open for drilling which has the potential to define significant gold mineralization.
The current Phoenix ore body drill intercepts collectively outline a 250 metre strike length with significant down-plunge exploration potential. The ore body is along strike from the nearby Phoenix ore body mineral resources and is relatively close to the Phoenix ore body underground mineral reserve and existing development. The Company has made plans to perform resource modeling of the current Phoenix ore body drill results ahead of underground mining studies.
Chantal Lavoie, President of Crocodile Gold, stated: "These drill results provide further encouragement for the Company that FGM may be able to expand its mineral resource base on extensions of known ore bodies which could extend the mine life. We are pleased with the performance of the mine since it was acquired by Crocodile Gold earlier this year and the commitment of the team who are determined to make the Fosterville operation as efficient as possible, thus ensuring its future as one of our key assets in the state of Victoria."
About Fosterville Gold Mine
FGM commenced commercial production in April 2005 and up to the end of December 2011 has produced 580,643 ounces of gold. The ore is refractory and gold is recovered through a state-of-the-art BIOX® processing plant that produces approximately 85,000 to 95,000 ounces annually. The mill is capable of processing approximately 800,000 tonnes of ore annually. Mineral reserves as of December 2011 are 2,411,000 tonnes of ore with an average grade of 4.71 g/t Au with in situ proven and probable gold of 365,000 ounces. Recently completed mineral resource statements are displayed in Table 1.
|Table 1: Mineral Resource Statement Fosterville Gold Mine*|
|Classification||Measured and Indicated||Inferred|
|Tonnes||Grade||In situ |
|Tonnes||Grade||In situ |
|(kt)||(g/t Au)||(kOz)||(kt)||(g/t Au)||(kOz)|
|Total Oxide & Sulphide||11,530||2.49||924||5,045||2.94||477|
|*See the NI 43-101 compliant technical report entitled "NI43-101 TECHNICAL REPORT FOSTERVILLE GOLD MINE, VICTORIA, AUSTRALIA" prepared for Crocodile Gold Corp by James P Llorca (Mining Plus), Neil Schunke (Mining Plus), (CP Mining) dated April 9, 2012, filed under the Company's profile on SEDAR for the details regarding these mineral resource estimates). Cut-off grades applied to Mineral Resources are 0.5 g/t Au and 0.8 g/t Au for oxide and sulphide mineralisation respectively above 5050mRL (approximately 100m below surface), which is deemed to be potentially open-pitable. The Mineral Resource cut-off grade applied for material below this point is 3.0 g/t Au. The Mineral Reserve estimate used a gold price of AUD$1400/ounce. The cut-off grades applied ranged from 1.1 g/t to 3.7 g/t Au for underground sulphide ore depending upon width, mining method and ground conditions. Dilution of 10-30% and mining recovery of 70-100% were applied to the Mineral Reserves dependent upon mining method.|
Additional Exploration At FGM
The Company is also drilling the Robbin's Hill area (see Figure 1) from the surface, which is located 3.7 kilometers northeast of the main mine portal in order to define additional resources. This area of past open pit mining has produced approximately 63,000 ounces of gold from 1.34 million tonnes that was recovered by heap leaching which finished in 2002. The Company is endeavoring to expand its mineral resource base at Robbin's Hill in anticipation that they can be included in future mine plans. Assays are pending and are expected to be reported in a future press release.
Additional underground drilling is also being undertaken on strike and depth extensions of FGM's Harrier ore body (see Figure 2). Assay results are also pending and will be reported in future press releases.
|Table 2: Phoenix Ore Body Drill Results|
|Hole ID||From (m)||To (m)||Downhole |
|Gold Grade |
|SPD514A||No significant intersection|
|SPD514F||No significant intersection|
|UDE039||No significant intersection|
|UDE061||No significant intersection|
|UDE083||No significant intersection|
|UDE086||No significant intersection|
|*Previously Reported Drill Intercept|
Qualified Person and QA/QC
Simon Hitchman, District Exploration Geologist of Fosterville Gold Mine 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.
Drill samples were assayed at On Site Laboratories in Bendigo, Victoria. Assay results are based on 25g charge fire assays. All intersections from diamond samples are NQ half-core. Diamond sample intervals are determined using logged sulphide controls, and vary between 0.3 and 1.5m in length.
Mean grades have been calculated using a, variable lower cut-off (generally 1 to 2 g/t Au) and maximum 1m internal dilution. No upper cut has been applied. All intersections are down-hole intervals. All deviations have been verified by down hole multi-shot camera. QA/QC for these holes has been checked and verified through blind standards, laboratory duplicates, repeats and blanks and barren flushes between laboratory jobs. QAQC results are within expected limits.
About Crocodile Gold
Crocodile Gold is a Canadian company with operating gold mines in the Northern Territory of Australia and in the State of Victoria with a land package of over 4,000 square kilometres. Crocodile Gold is currently mining at the Fosterville and Stawell mines in the State of Victoria. In the Northern Territory, the Company continues to develop its Cosmo underground mine and is permitting the International open pit mine. The Northern Territory ore production is processed at the Union Reefs Mill with a capacity of 2.4 million tonnes per year.
At its Northern Territory properties, 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 (see the NI 43-101 compliant technical report entitled "Report on the Mineral Resources and Mineral Reserves of the northern Territory Gold and Base Metals Properties for Crocodile Gold Corp." by Fleur Muller, Mark Edwards and Heath Gerritsen dated April 4, 2011, filed under the Company's profile on SEDAR for the details regarding these mineral resource estimates).
At its Stawell Mine, the Company has 0.292 million ounces of NI 43-101 complaint Indicated resources and 0.145 million ounces of Inferred mineral resources (see the NI 43-101 compliant technical report entitled "NI 43-101 Technical Report, Stawell Gold Mine, Victoria, Australia" prepared for Crocodile Gold Corp by James P Llorca of Mining Plus, and Neil Schunk of CP Mining.
At its Fosterville Mine Crocodile Gold has 0.924 million ounces of NI 43-101 compliant Measured and Indicated resources and 0.477 million ounces of Inferred mineral resources (see the NI 43-101 compliant technical report entitled "NI 43-101 Technical Report Fosterville Gold Mine, Victoria, Australia" prepared for Crocodile Gold Corp by James P Llorca of Mining Plus and Neil Schunke of CP Mining dated April 9, 2012, filed under the Company's profile on SEDAR for the details regarding these mineral resource estimates).
Crocodile Gold has an extensive exploration program in place in the Northern Territory and is exploring on several key properties on its expansive land package. Crocodile Gold's main focus is on the Cosmo Mine, and the Union Reefs and Maud Creek project areas. In the State of Victoria, the Company has exploration programs in place designed to expand the resource base of each mine property. For additional information, please visit our website www.crocgold.com.
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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 information, which includes management's assessment of Crocodile Gold's strategy, outlook, financial results, 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 information 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 information necessarily involves 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 information will prove to be accurate, and 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/croc830figures.pdf.