CROCODILE GOLD INTERSECTS 7.1 G/T AU OVER 4.5 METERS INCLUDING 11.2 G/T AU OVER 2.6 METERS AT THE UNION REEFS PROJECT, PROSPECT DEPOSIT
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1 65 Queen Street West Suite 825, P.O. Box 75 Toronto, Ontario M5H 2M5 Canada CROCODILE GOLD INTERSECTS 7.1 G/T AU OVER 4.5 METERS INCLUDING 11.2 G/T AU OVER 2.6 METERS AT THE UNION REEFS PROJECT, PROSPECT DEPOSIT PHASE 2 DRILLING TO FOLLOW UP ON SUCCESSFUL HIGH GRADE ZONES, INCLUDING PROSPECT AND LADY ALICE DEPOSITS August 23, 2011 Crocodile Gold Corp. (TSX:CRK) (OTCQX:CROCF) (Frankfurt:XGC) ( Crocodile Gold or the Company ) is pleased to announce continued high grade intersections from the exploration drilling program currently underway at the Union Reefs project (Figure 1). Crocodile Gold has now completed the first round of drilling on the Prospect deposit, with the two diamond drill rigs now drilling the E-Lens target at the Crosscourse deposit and the Lady Alice deposit. It is now planned that the new results are to be included in a resource update (Table 1). Highlights of the drill results from Union Reefs project include: g/t Au over 4.5 meters including 11.2 g/t Au over 2.6 metres at Prospect; g/t Au over 3.6 metres including 67.3 g/t Au over 0.3 metres at Prospect; g/t Au over 5.5 metres including 23.3 g/t Au over 0.8 metres at Prospect; g/t Au over 9.0 metres and 8.1 g/t Au over 1.2 metres at Lady Alice. Crocodile Gold currently has two diamond drill rigs drilling at the Union Reefs project. To date, these rigs have been working on completing the first pass of drilling below the current area defining the Prospect deposit. One rig has moved to drill the E-Lens target at the Crosscouse deposit, with the second rig moving to the nearby Lady Alice deposit to continue drilling below the existing pit. Bill Nielsen, Vice President Exploration, commented: Now that the first pass of drilling has been completed at the Prospect Zone, we will have the opportunity to review these results and target future drilling at these higher grade zones. To date, the drill results have been encouraging as the defined mineralization is as expected with minable grades and widths noted. David Keough, Chief Operating Officer, reviewed the results and commented: Being at shallow depth, in close proximity to the Union Reefs Mill and on active mining leases, these zones have the potential to bring higher grade ore in the short to medium term with minimal investment, supporting our growth strategy. For the first pass, a total of nine holes have been completed for more than 1,870 metres of drilling at Prospect (Figure 2, Figure 3). These holes have all targeted below the current National Instrument ( NI ) compliant resource for the deposit to a depth of meters below the existing pit and along a strike length of around 550 meters. Highlights of this drilling include the previously released 4.92 metres at 5.75 g/t Au and 2.92 metres at 6.67 g/t Au (See news release dated July 6, 2011). Phase two drilling will be implemented to follow up on the higher grade zones. This will entail drilling along a strike length of metres and to a depth of metres. The overall objective is to define resources for subsequent underground mining. The Prospect, Lady Alice and Crosscourse deposits are all located within close proximity of the Union Reefs mill. Table 1 Hole_ID Location Local Grid Depth From To Width True Width Grade East North RL (m) (m) (m) (m) (m) (g/t Au) URNDD19 Prospect and URNDD20 Prospect and and and URNDD21 Prospect Reported previously URNDD22 Prospect inc and and inc and URNDD23 Prospect Reported previously URNDD24 Prospect Reported previously URNDD25 Prospect inc TSX:CRK OTCQX:CROCF FRANKFURT: XGC
2 URNDD26 Prospect Results pending URNDD27 Prospect inc One hole has also been completed at the Lady Alice deposit (Figure 4) which is located to the east of the Prospect drill area. This hole was drilled directly below the existing pit targeting higher grade mineralization. Several intersections have been noted in Table 2. Further drilling of this deposit is currently underway with additional results expected in the coming weeks. Table 2 Hole ID Location Local Grid Depth From To Width True Width Grade East North RL (m) (m) (m) (m) (m) (g/t Au) URNDD10 Lady Alice and and and and and and and In addition, over the past month several shorter exploration holes were drilled under the Crosscourse and the Millars/Big Tree areas. Several of these have shown the existence of higher grade mineralization below these historic mining areas (Figure 5). Further follow up work is planned when the rigs have completed current drilling at the Prospect and Lady Alice areas. Table 3 Hole ID Location Local Grid Depth From To Width True Width Grade East North RL (m) (m) (m) (m) (m) (g/t Au) URNDD15 Millars/Big Tree and and Millars/Big URSDD12 Tree and URSDD14 Millars/Big Tree inc and and and Crosscourse URNDD inc URSDD17 Crosscourse and and 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 2,700 km 2. Crocodile Gold is currently mining from the Howley open pit mine. The Company 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 million ounces of NI compliant Measured and Indicated mineral resources (51.85 million tonnes at an average grade of 1.9 g/t gold) and 2.14 million ounces of Inferred mineral resources (36.35 million tonnes at an average grade of 1.8 g/t gold) (see Annual Information Form dated March 31, 2010 and Crocodile Gold press releases dated September 8, 2009 and January 25, 2010). The Company has an exploration program in place and is drilling on several key properties on its expansive land package. Crocodile Gold s main focus is on the Cosmo/Howley corridor and the Union Reef project area.
3 Qualified Person Mark Edwards, Geology Manager of Crocodile Gold Australia Operations is a qualified person as such term is defined in NI and has reviewed and confirmed the technical information and data included in this press release. Notes: 1. Drill samples were assayed at Northern Australian Laboratories (NAL). 2. Assay results are based on 50g fire assays. 3. All intersections from diamond samples are HQ half-core. 4. Diamond sample intervals are determined using lithological controls or 1.0m whichever is larger. 5. Mean grades have been calculated on a minimum of 1.0m interval, 0.5 g/t lower cut-off and maximum 3 metres internal dilution. 6. All intersections are down-hole intervals. 7. All deviations have been verified by down hold camera. 8. Quality Assurance Quality Control ( QAQC ) for these holes has been checked and verified through blind standards, field duplicates, lab repeats and barren flushes. QAQC results are within expected limits. For further information, please contact: Rob Hopkins Manager, Investor Relations Crocodile Gold Corp. Tel: info@crocgold.com Cautionary Note Certain information set forth in this press release contains forward-looking statements, and forwardlooking 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 forwardlooking 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.
4 Figure 1: New Drilling Locations 65 Queen Street West Suite 825, P.O. Box 75 Toronto, Ontario M5H 2M5 Canada
5 Figure 2: Long Section of Prospect Drill Results Figure 3: 3D View of Prospect Drilling
6 Figure 4: Long Section of Lady Alice Drilling Figure 5: 3D View of Crosscourse Drilling E-Lens mineralization New Drilling
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