Oct 21 2010
Crocodile Gold Corp. (TSX:CRK)(OTCQX:CROCF)(FRANKFURT:XGC) has announced the latest diamond drill results from the Cosmo project in the Northern Territory of Australia from holes CP010 and CP011.
Results indicate that mineralization continues to extend down dip of the existing mineral resource on the eastern lodes of the Cosmo structure. Crocodile Gold anticipates a mineral resource expansion at Cosmo incorporating these results to be announced by early 2011.
Highlights of these drill results include:
- 7.69 g/t Au over 19.1 metres including 14.67 g/t Au over 2.3 metres, 14.47 g/t Au over 2.9 metres and 13.41 g/t Au over 3.0 metres in hole CP011
- 5.42 g/t Au over 9.1 metres including 11.20 g/t Au over 1.6 metres and 8.80 g/t Au over 1.8 metres in hole CP010
In releasing this information, Mike Hoffman, President and Chief Executive Officer of Crocodile Gold commented, "Our exploration efforts at Cosmo during the past year have been successful in showing the significant upside potential in the size of the Cosmo deposit. We believe these results combined with previous drill results should add further confidence to the mineral resource estimate at Cosmo."
These results are part of the ongoing infill and extension drill program at Cosmo to further define the existing mineralization and to expand the mineralization along strike and at depth. A drill plan showing the location of holes CP010 and CP011 is shown in Figure 2 below, which also shows the location of recent previously released holes (refer to Crocodile Gold press release dated September 28, 2010).
Crocodile Gold is currently developing the Cosmo underground mine with production expected in mid-2011. The Cosmo mine by itself is expected to contribute 100,000 ounces of production annually in 2012, the first full year of production. Crocodile Gold plans to drill from underground as ramp development continues at Cosmo with the advantage of lower cost drilling compared to drilling longer holes from surface.
The current Cosmo mineral resource model encompasses the Cosmo eastern lodes down to a vertical depth of approximately 655 metres below surface and the western lodes down to a vertical depth of approximately 350 metres below surface. The strike length of each of the parallel eastern lodes is approximately 440 metres, and is approximately 260 metres on the western lodes. The majority of historical drilling at Cosmo has focused on the eastern lodes.
Crocodile Gold is using the latest drilling results in the current mineral resource upgrade which is due for completion in early 2011. This information will then be used in a detailed mine schedule and planning. Currently, the Resource Development team is working to incorporate these new drilling results to plan for exploration activities in 2011, based primarily on underground diamond drilling testing the depth extensions of the known east and west lodes plus exploration drilling on targets such as the newly defined Phantom lodes.
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 confirmed the technical information and data included in this press release.
Source: Crocodile Gold Corp.