EDITOR: | July 24th, 2013

Crocodile Gold Updates Northern Territory Mineral Reserve and Resource Estimates

| July 24, 2013 | No Comments
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July 24, 2013 (Source: Marketwired) — Crocodile Gold Corp. (TSX:CRK)(OTCQX:CROCF) (FRANKFURT:XGC) (“Crocodile Gold” or the “Company) has made updates to the estimated mineral reserves and mineral resources of the Company’s Northern Territory Projects (Figure 1). Separate technical reports are being prepared in accordance with NI 43-101 for each of the five project areas: Cosmo Mine, Burnside, Union Reefs, Pine Creek and Maud Creek and will be filed on SEDAR within 45 days of this news release.

Highlights of the Mineral Resource Estimate Update
  • Total estimated measured and indicated mineral resources had a modest 8% decrease, estimated inferred mineral resources experienced a 6% decrease.
  • The Cosmo Mine saw an overall decrease in mineral resource categories, largely driven by reduced drill spacing required for indicated and inferred classifications. Consequently part of the previous resource is now unclassified; underground drilling is continuing to increase the resource base. The Mine has now established a better reconciliation between the geological model and actual milling results, which is expected to improve forecasting.
  • Definition drilling at the Union Reefs project area produced a significant increase in estimated measured and indicated mineral resource ounces and estimated inferred ounces.
  • Remodeling of the Maud Creek deposit with a better structural interpretation lead to a small decrease in estimated measured and indicated mineral resource ounces, but an increase in estimated inferred mineral resource ounces.
Table 1: 2013 to 2011 Changes to Estimated Mineral Resource Ounces for the Northern Territory Projects
Measured + Indicated Inferred
Tonnes
(MM)
Grade
(g/t Au)
Ounces
(Koz)
% Change in Ounces Tonnes
(MM)
Grade
(g/t Au)
Ounces
(Koz)
% Change
In Ounces
Cosmo Mine 4.1 3.6 482 -38* % 2.5 3.2 250 -63 %
Burnside 7.6 1.4 336 -32%** 11.8 1.6 600 -7 %
Union Reefs 3 2.4 237 1,200 % 4.3 2.2 305 49 %
Pine Creek 8.4 1.4 379 31 % 2.5 2.3 191 4 %
Maud Creek 7.7 3.5 871 -7 % 4.2 2.6 343 319 %
Total 30.8 2.5 2,305 -8 % 25.3 2.1 1,689 -6 %
* Includes depletion of resource from mining, refer to Note 1
** Includes depletion of resource from mining, refer to Note 5
Cosmo Mine (see Note 1)
  • Proven and Probable Mineral reserves of 1,955,000t at 3.75g/t Au for 235,948 ounces
  • Estimated Measured and Indicated Mineral Resources of 4,132,000t at 3.6g/t Au for 482,000 ounces
  • Estimated Inferred Mineral Resources of 2,467,000t at 3.2g/t Au for 250,000 ounces

An intensive underground drilling program has been underway at the Cosmo Mine for the past 12 months in order to accelerate the ability of the Company to increase mineral reserves and resources. The outcome of this program has been a dramatic increase in the geological and structural understanding of the deposit as well as its gold distribution characteristics. This has enabled Crocodile Gold’s staff to have significantly more confidence in their ability to predict the various ore bodies and their consistency. This has also established a better reconciliation between the geological model and actual milling results at the Union Reefs mill which will lead to improved recovery rates and more efficient budgeting and forecasting for Cosmo.

With this increased knowledge of the Cosmo deposit, there also comes a significant decrease in estimated mineral reserve and resource ounces when compared with the 2011 calculations due to amended drill spacing requirements and mining activity.

The 2013 mineral resource estimate has used a 20m x 15m for indicated classification increasing to 30m x 40m for inferred classification. Because of the reduced spacing for the classifications, anything larger than 30m x 40m is now considered “non-classified mineralization”. This has reclassified a significant portion of the 2011 estimated inferred mineral resources as non-classified mineralization. The Company is continuing its underground drilling campaign with the goal of increasing the mineral reserve and resource base.

Union Reefs Project (see Note 2)

  • Proven and Probable mineral reserves of Prospect of 298,000t at 4.4g/t Au for 41,900 ounces
  • Estimated Total Measured and Indicated Mineral Resources of 3,021,000t at 2.4g/t Au for 236,600 ounces
  • Estimated Total Inferred Mineral Resources of 4,262,100t at 2.2g/t Au for 304,800 ounces

There has been an increase of over 1,200% in estimated mineral resources at the Union Reefs Project due to the new drill definition of significant mineralization at the Prospect and Crosscourse deposits. Because of this success, the Company is now reviewing a possible underground exploration program to support further underground drilling and test mining at the Prospect deposit.

The additional underground drilling is required at the Prospect and Crosscourse deposits in order to convert Inferred Resources to the Indicated classification as well as expand the mineral resource base. The overall objective is to establish the Union Reefs area as a long-term source of ore, largely from underground workings.

Table 2: Union Reefs Mineral Resource Estimate Effective as of 31st December 2012
INDICATED MINERAL RESOURCE INFERRED MINERAL RESOURCE
Deposit Cut-off (Au g/t) Tonnes Grade (Au g/t) Ounces Gold Cut-off (Au g/t) Tonnes Grade (Au g/t) Ounces Gold
Prospect 2.0 450,000 5.1 73,200 2.0 380,000 7.2 88,400
Crosscourse E-Lens* 1.0 2,300,000 1.9 137,000 1.0 479,000 2.0 30,000
Crosscourse Western Lode* 2.0 191,000 3.7 23,000 2.0 96,000 4.1 12,000
Low-Grade Stockpiles NA 260,000 0.8 6,300
Esmeralda 0.5 1,062,000 2.1 70,300
Lady Alice 0.5 68,000 1.9 4,100
Millars/Big Tree /PingQue 0.5 523,000 1.8 30,100
Orinoco 0.5 80,000 1.3 3,400 0.5 17,100 2.4 1,300
Union North 0.5 559,000 1.5 27,300
Union South/
Temple
0.5 818,000 1.3 35,000
Total 3,021,000 2.4 236,600 4,262,100 2.2 304,800
Maud Creek Project (See Note 3)
  • Proven and Probable Mineral reserves of 1,055,000t at 5.4g/t Au for 184,500 ounces
  • Estimated Measured and Indicated Mineral Resources of 7,733,000t at 3.5g/t Au for 871,000 ounces
  • Estimated Inferred Mineral Resources of 4,192,000t at 2.5g/t Au for 343,600 ounces

The Maud Creek deposit has been remodelled with more stringent constraints being applied to the geological and structural interpretation. That has resulted in a marginal reclassification of estimated indicated mineral resources but estimated inferred mineral resources have increased by 49% as have contained ounces.

The Company is looking into increasing the mineral reserve base and including the deposit into its long-term mine plan.

Table 3: Maud Creek Mineral Resource Estimate Effective as of 31st December 2012
INDICATED MINERAL RESOURCE INFERRED MINERAL RESOURCE
Deposit Cut-off (g/t) Au Tonnes Gold Grade (g/t) Ounces Gold Cut-off (g/t) Au Tonnes Gold Grade (g/t) Au Ounces Gold
Maud Creek* 1.0 7,733,000 3.5 871,000 1.0 4,192,000 2.6 343,600
Note: *Underground Mineral Resource
Mineral Resources include Mineral Reserves
Pine Creek Project (see Note 4)
  • Total Proven and Probable mineral reserves of 1,251,000t at 1.55g/t Au for 62,310 ounces
  • Estimated Total Measured and Indicated Mineral Resources of 8,387,000 t at 1.4g/t Au for 379,300 ounces
  • Estimated Total Inferred Mineral Resources of 2,544,300t at 2.3g/t Au for 191,400 ounces

At Pine Creek there are sufficient mineral reserves and resource for the Company to consider sequencing the open pit mining of various deposits over the longer term. Additional drilling is required to upgrade the resource base.

Table 4: Pine Creek Mineral Reserve Estimate Effective as of 31st December 2012
PROBABLE MINERAL RESERVE
Deposit Cut-off (g/t) Au Tonnes Grade (g/t) Au Contained Ounces
Kohinoor 0.91 128,000 2.4 9,920
Cox 0.91 130,000 1.6 6,780
International 0.93 870,000 1.3 36,270
South Enterprise 0.91 123,000 2.4 9,340
Total 1,251,000 1.6 62,310
Table 5: Pine Creek Mineral Resource Estimate Effective as of 31st December 2012
INDICATED MINERAL RESOURCE INFERRED MINERAL RESOURCE
Deposit Cut-off (g/t) Tonnes Au (g/t) Ounces Gold Cut-off (g/t) Tonnes Au (g/t) Ounces Gold
Cox 0.5 730,000 1.4 33,100 0.5 74,000 1.4 3,300
Czarina 0.5 1,040,000 1.8 60,300
South Czarina 0.5 294,000 1.5 14,100
Enterprise 0.5 1,061,000 2.6 87,600
Gandy’s 0.5 535,000 1.8 31,100 0.5 482,000 2.9 45,300
International 0.5 5,112,000 1.2 195,700 0.5 197,300 1.3 8,200
Kohinoor 0.5 470,000 1.8 27,100 0.5 335,000 2.6 28,500
South Enterprise 0.5 500,000 2 32,000 0.5 101,000 1.4 4,400
TOTAL 8,387,000 1.4 379,300 2,544,300 2.3 191,400
Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability
Burnside Project (see Note 5)
  • Total Proven and Probable mineral reserves of 154,000t at 1.93g/t Au for 9,530 ounces.
  • Estimated Total Measured and Indicated Mineral Resources of 7,552,800t at 1.4g/t Au for 335,680 ounces.
  • Estimated Total Inferred Mineral Resources of 11,827,800t at 1.6g/t Au for 600,200 ounces.

The Company ceased mining open pits in the Burnside area in 2012. There are plans to complete further drilling at the higher grade Bons Rush and Kazi deposits in order to bring these higher grade mineral resources into the long-term mine plan.

Table 6: Burnside Mineral Reserve Estimate Effective as of 31st December 2012
PROBABLE MINERAL RESERVE
Gold Contained Ounces
Deposit Cut-off (g/t) Tonnes Grade (g/t) Gold
North Point 0.9 94,000 1.6 4,800
Glencoe 1.0 60,000 2.5 4,700
Total 154,000 1.9 9,500
Table 7: Burnside Mineral Resource Estimate Effective as of 31st December 2012
M&I MINERAL RESOURCE INFERRED MINERAL RESOURCE
Deposit Cut-off (Au g/t) Tonnes Grade (Au g/t) Ounces Gold Cut-off (Au g/t) Tonnes Grade (Au g/t) Ounces Gold
HowleyA 0.7 5,838,000 1.2 229,500 0.7 1,355,000 1.4 61,400
MottramsA 0.7 204,000 1.2 7,700 0.7 169,000 1.1 6,200
North PointA 0.7 139,000 1.3 6,400 0.7 117,000 1.3 4,900
Princess LouiseA 0.7 394,000 1.3 16,200
Glencoe 0.7 187,000 2.1 12,800 0.7 32,800 2.5 2,600
Rising Tide 0.7 292,000 1.5 13,600 0.7 372,000 1.5 17,800
Fountain Head 0.7 273,000 1.8 15,700 0.7 99,000 2.0 6,200
Tally Ho* 2.0 221,000 4.7 33,400 2.0 114,000 4.9 17,900
Kazi 0.7 410,000 2.0 25,700
Western Arm 0.7 3,383,000 1.1 120,300
Bridge Creek 0.7 1,796,000 1.2 66,800
Bon’s Rush 0.7 805,000 2.3 60,400
Mined Stockpiles N/A 4,800 2.5 380
Iron Blow* 1.0 3,175,000 2.1 210,000
Total 7,552,800 1.4 335,680 11,827,800 1.6 600,200
* Underground Resource
Adepleted from mining as of December 31, 2012
Mineral Resources include Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability

Notes/Technical Disclosure/Disclaimers

Mineral resources that are not mineral reserves do not have demonstrated economic viability. The estimates of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio political, marketing, or other relevant issues.

The quantity and grade of reported inferred resources in the above estimations are uncertain in nature and there has been insufficient exploration to define these inferred resources as an indicated or measured mineral resource and it is uncertain if further exploration will result in upgrading them to an indicated or measured mineral resource category.

Note 1 – Cosmo (Underground)
  1. The Mineral Reserve as of 1st June 2013
  2. All Mineral Reserves have been estimated in accordance with the JORC code and have been reconciled to CIM standards as prescribed by the National Instrument 43-101 – Standards for Disclosure of Mineral Projects (“NI 43-101”)
  3. Mineral Reserves were estimated using the following mining and economic factors
    1. 15% dilution added to all stopes
    2. Minimum stope width is 3m
    3. Stope recovery is 95% or 65% were crown pillars are to remain in situ
    4. A gold price of AUD$ 1,450/ oz
    5. An overall processing recovery of 93%
  4. The cut-off grade for Mineral Reserves has been estimated at 2.9 g/t Au.
  5. The Mineral Resource Estimate includes depleted tonnes mined of 550,000t @ 3.13g/t for 55,500oz
Note 2 – Union Reefs (Underground)
  1. The Mineral Reserve as of 31st December 2012
  2. All Mineral Reserves have been estimated in accordance with the JORC code and have been reconciled to CIM standards as prescribed by the NI 43-101
  3. Mineral Reserves were estimated using the following mining and economic factors
    1. A 0.2m hangingwall and footwall skin has been added to the economic stope shape to allow for dilution
    2. Minimum stope width is 2m
    3. Stope recovery is 95%
    4. A gold price of AUD$ 1,450/ oz
    5. An overall processing recovery of 93%
  4. The cut-off grade for Mineral Reserves has been estimated at 2.7 g/t Au
Note 3 – Maud Creek (Underground)
  1. The Mineral Reserve as of 31st December 2012
  2. All Mineral Reserves have been estimated in accordance with the JORC code and have been reconciled to CIM standards as prescribed by the NI 43-101
  3. Mineral Reserves were estimated using the following mining and economic factors
    1. A 13% dilution factor and 110% recovery was applied to the caving under fill method
    2. A 5% dilution factor and 90% recovery was applied to sub level open stoping
    3. A gold price of AUD$ 1,450/oz
    4. An overall processing recovery of 88%
  4. The cut-off grade for Mineral Reserves has been estimated at 4 g/t Au
Note 4 – Pine Creek (Open Pit)
  1. The Mineral Reserve as of 31st December 2012
  2. All Mineral Reserves have been estimated in accordance with the JORC code and have been reconciled to CIM standards as prescribed by the NI 43-101
  3. Mineral Reserves were estimated using the following mining and economic factors
    1. A 10 – 15% dilution factor and 95% recovery was applied to the mining method
    2. Wall angles of 35º in oxide and 40º in fresh
    3. A gold price of AUD$ 1,450/oz
    4. An overall processing recovery of 90%
  4. The cut-off grade for Mineral Reserves has been estimated at 1 g/t Au
Note 5 – Burnside (Open Pit)
  1. The Mineral Reserve as of 31st December 2012
  2. All Mineral Reserves have been estimated in accordance with the JORC code and have been reconciled to CIM standards as prescribed by the NI 43-101
  3. Mineral Reserves were estimated using the following mining and economic factors
    1. A 15% dilution factor and 95% recovery was applied to the mining method
    2. Wall angles of 35° in oxide and 40°in fresh
    3. A gold price of AUD$ 1,450/oz
    4. An overall processing recovery of 90%
  4. The cut-off grade for Mineral Reserves has been estimated at 1 g/t Au
  5. The Mineral Resource Estimate includes depleted tonnes mined of 2.2Mt @ 1.08g/t for 77,200oz since Jan 2011 and Brocks Creek depleted 40,000t @ 5.09g/t for 6,500oz

The measured, indicated and inferred mineral resource estimates for Cosmo prepared by Craig Pridmore, MAusIMM (CP) and Chief Geologist at Crocodile Gold. Mineral Resource estimates for Maud Creek, Pine Creek, Burnside and Union Reefs prepared by Mark Edwards, MAusIMM (CP) and General Manager, Exploration at Crocodile Gold. Mineral reserve estimate calculations were prepared Phil Bremner, FAusIMM, Consultant from Mining One Pty. for Cosmo, Maud Creek and Prospect and Dean Basile, MAusIMM (CP), Consultant from Mining One Pty. for all Pine Creek and all Burnside Deposits, who all are “qualified persons” as such term is defined in National Instrument 43-101. F. W. Nielsen P.Geo., V.P. Exploration of Crocodile Gold Corp. has reviewed and approved, the technical information and data included in this news release.

Technical reports prepared in accordance with NI 43-101 supporting the updated mineral resource and mineral reserve estimates will be available under the Company’s profile on SEDAR (www.sedar.com) within 45 days of this news release.

About Crocodile Gold

Crocodile Gold is a Canadian gold mining and exploration company with three operating mines in the Northern Territory and the State of Victoria, Australia. The Company has a combined land package in excess of 4,000 sq. km. The objective of Crocodile Gold is to continue production from its three operating mines, Cosmo, Stawell and Fosterville, while also advancing development programs to further organic growth. For additional information, please visit our website.

Qualified Person

F. W. Nielsen, P.Geo, V.P. Exploration of Crocodile Gold Corp. 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.

Cautionary Note

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 the Company’s expectations for future performance based on current drill results and past production, expected gold prices, and mineral resource and mineral reserve 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 licences, 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 that 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, 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 Figure 1: Northern Territory Complex, please visit the following link: http://media3.marketwire.com/docs/CRKFig_1.p


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