Crocodile Gold has an agreement with Thundelarra, signed in September 2007, in which Thundelarra has the right to explore 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 AUD$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.
The highlights include 3mt grading 0.66% U3O8 including 1mt 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.
Grades in the upper mineralized zone have continued to strengthen towards the north. Drill hole TPCDD031 returned a 1mt interval grading 0.36% U3O8 within an upper zone intersection of 2mt 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 200mt and mineralization remains open to some degree in all directions.
The company said that information from the 23 reverse circulation and 15 diamond drill holes completed within the Thunderball area will be combined with geophysical data acquired in recent months to prepare a 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.
