January 18, 2010 – Crocodile Gold Corp. (TSX:CRK) (“Crocodile Gold” or the “Company”) today announces uranium drill results announced by its joint venture partner, Thundelarra Exploration Ltd (“Thundelarra”) on January 15, 2010 on certain properties located 140 kilometres south of Darwin in the Northern Territory of Australia, known as the Thunderball uranium prospect (“Thunderball”). The location of Thunderball can be viewed in Figure 1 below. Crocodile Gold has an agreement with Thundelarra, signed in September 2007, 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. Thundelarra holds a 70% interest until development and must incur a minimum AUS$250,000 in exploration expenditures per year for the first three years and has the right to apply for a mining tenement on behalf of the joint venture. Crocodile Gold has a 30% free carried interest until development through the agreement with Thundelarra.
Highlights include 3 metres grading 0.66% U3O8 including 1 metre grading 1.3% U3O8 from drill hole TPCDD032. The drill results are from the final five drill holes from a diamond drilling program completed at Thunderball in December 2009. Drill results are summarized in Table 1 below.
Grades in the upper mineralized zone have continued to strengthen towards the north. Drill hole TPCDD031 returned a 1 metre interval grading 0.36% U3O8 within an upper zone intersection of 2 metres grading 0.22% U3O8.
Overall, seven of the eight holes drilled in the latest program have produced uranium grades in excess of 0.1% U3O8. High grade uranium has now been defined over a strike length exceeding 200 metres and mineralization remains open to some degree in all directions.
Information from the 23 reverse circulation and 15 diamond drill holes completed within the Thunderball area will be combined with extensive geophysical data acquired in recent months to prepare a detailed structural model of the prospect and identify the principle controls on mineralization. Thundelarra has retained SRK Consulting to work with Thundelarra’s geologists on this project.
The modelling will be used to aid in the design of the next drilling program, scheduled to commence at the beginning of April. It is Thundelarra’s objective to calculate an initial mineral resource estimate for Thunderball in 2010.
A plan view of all significant intercepts from the main target zone at Thunderball can be viewed in Figure 2 below.
Alfred John Gillman of Odessa Resources Pty Ltd 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.
Drill core was assayed at Northern Territory Environmental Laboratories (NTEL).
About Crocodile Gold
Crocodile Gold is a Canadian company that has completed the acquisition of recent past producing gold assets in the Northern Territory of Australia. The assets comprise an area greater than 3,500 square kilometres and are located approximately 90 to 285 kilometres south of the capital city, Darwin, and include the Burnside Project, Tom’s Gully Project and Maud Creek Project. The property contains 3.0 million ounces of NI 43-101 compliant measured and indicated resources (40.9 million tonnes at an average grade of 2.3 g/t gold), and 1.8 million ounces of inferred resources (25.9 million tonnes at an average grade of 2.3 g/t gold) (See Management Information Circular dated October 5, 2009 and Crocodile Gold Press Release dated September 8, 2009). The Burnside Project includes the Brocks Creek underground mine, the Howley open pit mine and several additional deposits along the Cosmo/Howley corridor, including the undeveloped Cosmo underground deposit. The Tom’s Gully Project includes the Tom’s Gully underground mine and the former Mt Bundy (Rustler’s Roost) Mine. Crocodile Gold owns the 8,000 tpd Union Reefs mill and the 800 tpd Tom’s Gully mill. Crocodile Gold trades under the symbol CRK on the Toronto Stock Exchange.
For further information, please contact:
President and CEO
Crocodile Gold Corp.
Manager, Investor Relations
Crocodile Gold Corp.
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 statements which include management’s assessment of Crocodile Gold’s future plans, 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 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: 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 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.
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