Crocodile Gold Corp. reports on high-grade intersections from drill holes completed on the Phoenix and Lower Phoenix structures at the Fosterville Gold Mine (FGM) in the State of Victoria, Australia.
Highlights of the drilling include:
Phoenix Structure Drill Intercepts
- 12.66 g/t Au over 6.90m (ETW* 5.40m) in hole UDH0501
- 6.40 g/t Au over 9.65m (ETW 7.90m) in hole UDH0503
- 10.41 g/t Au over 5.30m (ETW 3.80m) in hole UDH0505
- 6.00 g/t Au over 15.90m (ETW 11.70m) in hole UDH0750
Lower Phoenix Structure Drill Intercepts
- 24.00 g/t Au over 33.80m (ETW 7.00m) in hole UDE110
- 32.86 g/t Au over 3.60m (ETW 3.00m) in hole UDH0561
- 12.89 g/t Au over 14.35m (ETW 8.00m) in hole UDH0575
- 19.15 g/t Au over 6.85m (ETW 6.30m) in hole UDH0617
- 16.67 g/t Au over 11.90m (ETW 8.60m) in hole UDH0643
- 122.35 g/t Au over 6.80m (ETW 6.60m) in hole UDH0755
*ETW - Estimated True Width. Full drill results can be found in Table 1
2013 Phoenix and Lower Phoenix Drilling Program
The Company's 2013 drilling campaign at Fosterville Gold Mine targeted known estimated Mineral Resources associated with the Phoenix and Lower Phoenix structures as well as extension opportunities, believed to provide excellent potential for Mineral Resource growth. Progressive drilling and geological modeling of the Phoenix Fault System has confirmed the presence of two favourable structural zones (Phoenix and Lower Phoenix) below the 4500mRL, which host significant gold mineralization. Both the Phoenix and Lower Phoenix Zones are proximal to fold axial plane offsets along the Phoenix Fault System.
Lower Phoenix Structure
Crocodile Gold has drilled 225 metres south along strike (down plunge), 275 metres north along strike (up plunge) and 75 metres down dip from the existing Lower Phoenix estimated Mineral Reserve (See Figures 1, 2, 3 & 4). Drill results have provided evidence that significant gold mineralization associated with the Lower Phoenix structure is continuous over a 1 kilometre strike length and an approximate 100 metre down dip length, between Mine Grid northings 6700mN and 7700mN. Drill intercepts that fall outside of the current estimated Mineral Reserve and that, in management's view, present opportunity for Mineral Resource extension are reported in Table 1. Drilling is absent south of 6700mN and there is no drilling north of 7700mN for a distance of 500 metres on the Lower Phoenix structure. Crocodile Gold expects to complete additional drilling in 2014 south of 6700mN and north of 7700mN along the interpreted orientation of the Lower Phoenix structure, where there is potential to define further zones of significant gold mineralization.
Crocodile Gold has also continued definition drilling into the Phoenix structure during 2013. Drill results continue to reaffirm good continuity of the known estimated Mineral Resources in this area (see Figures 1, 2 & 3). There is no drilling on the Phoenix structure south of 6500mN for a distance of 450 metres in strike length. The Company expects to complete additional exploration drilling on the Phoenix structure south of the 6500mN during 2014. Crocodile Gold currently has three underground diamond drill rigs conducting work on various targets at Fosterville Gold Mine.
Progressive geological modeling and mining studies on both the Phoenix and the Lower Phoenix mineralized structures have resulted in the development of two independent mining areas, Central and Phoenix (See Figures 2, 3 & 4). The Central decline will continue to provide access to the existing Phoenix estimated Mineral Reserves and southern estimated Mineral Resource extensions, which are now the subject of upcoming reserve studies. The Phoenix decline development, which commenced in February 2013, will provide access to the Lower Phoenix Mineral Reserve. Anticipated resource extensions north and south of the Lower Phoenix estimated Mineral Reserve will also be accessed from this decline. Ventilation upgrades are ongoing throughout 2014, to service the future operation of the Central and Phoenix mining areas.
Rodney Lamond, President and CEO of Crocodile Gold, commented on the recent results: "The Company continues to focus its exploration strategy on near-term drilling targets as part of our planning for sustainable production and I am very encouraged with the recent drilling results from the Phoenix exploration program. The results confirm the down plunge extension of the Phoenix orebody and suggest that we may be able to extend our current Life of Mine (LOM) plans. In addition, the mineralization appears to separate into two distinct mining zones: the Phoenix and Lower Phoenix ore zones. As the mining focus moves towards these new ore zones, the Company has already commenced a $4.5 million underground ventilation upgrade that will service the growing Phoenix orebody and facilitate the increased mining activity on the two new mining horizons."
The Company is in the process of updating its Mineral Reserve and Mineral Resource estimate at Fosterville, which will incorporate the encouraging drill results obtained throughout 2013. The work is expected to be finalized in the second quarter and management is optimistic that additional estimated Mineral Resources identified will continue to extend the mine life of Fosterville.