Crocodile Gold Achieves 2012 Production Targets With 155,523 Ounces
Quarterly Gold Production Increased 35% With 62,147 oz Produced in Q4
TORONTO, ONTARIO--(Marketwire - Jan. 18, 2013) - Crocodile Gold Corp. (CRK.TO)(CROC)(XGC.F) ("Crocodile Gold" or the "Company") is pleased to announce production of 62,147 ounces of gold in the fourth quarter of 2012, an increase of 35% over the third quarter of 2012. During the year ended December 31, 2012, the Company produced 155,523 ounces of gold.
| First | Second | Third | Fourth | 2012 | 2012 | |||||
Ore Processed (t) | 371,439 | 471,056 | 508,655 | 651,378 | 2,002,528 | 2,553,790 | |||||
Average Grade (g/t Au) | 0.99 | 2.82 | 3.31 | 3.40 | 2.79 | 2.91 | |||||
Mill Recovery (%) | 92.5% | 87.2% | 85.6% | 88.0% | 88.0% | 86.7% | |||||
Gold oz Produced | 10,932 | 36,481 | 45,963 | 62,147 | 155,523 | 203,772 | |||||
Note 1: Includes production from Fosterville and Stawell post May 4th acquisition date | |||||||||||
The significant increase in gold production for the fourth quarter was a result of 28% more throughput and a 2% increase in the average gold grade. The total annual production for Crocodile Gold's current operations was 203,772 ounces of gold, taking into account total production at the Fosterville and Stawell Gold Mines since January 1, 2012 (Crocodile Gold acquired these assets on May 4, 2012).
Commenting on these results, Chantal Lavoie, President and CEO of the Company, said, "Our operations delivered a strong fourth quarter, with continuous improvement over the previous quarters, in line with our guidance of 143,000 to 158,000 ounces of gold production for 2012. Looking ahead to 2013, the Company will continue to focus on delivering profitable gold production while continuing to rationalize non-core assets."
Operational Update-State of Victoria
The Fosterville Gold Mine (FGM) continued to access ore from the Harrier and Phoenix zones, with contributions from surface mining of small satellite ore zones. FGM mined an average of 70,800 tonnes a month, resulting in gold production of 26,650 ounces for the fourth quarter.
The Stawell Gold Mine (SGM) mined an average of 70,000 tonnes a month, producing a total of 22,669 ounces for the quarter. SGM continues to execute its transition plan that will see underground activities being completed in 2013. Capital development was completed in September with fourth quarter mining activities focused on production with minimal ore development and no further capital expenditure.
Operational Update-Northern Territory
At the Cosmo Mine, development and production ramp-up continued with an average of 575 meters of development per month. Stoping activities continued to increase during the quarter. Cosmo produced an average of 35,000 tonnes a month through the quarter and achieved over 48,000 tonnes of ore production in December. Mill production was supplemented by lower grade stockpiles available from various projects in the Company's Northern Territory holdings. In total, an average of 73,000 tonnes per month was treated at the Union Reefs mill, producing 12,829 ounces for the quarter.
In late December, commercial proposals were received for the mining of the International open pit deposit. After review of the proposals, which are more expensive than previously estimated, the Company believes it must reassess whether the project meets its internal return hurdle or if capital is better spent on other of the Company's growth projects in 2013. As such, mining will not commence on International until the Company finalizes its three-year plan and determines its optimal use of capital in 2013.
Exploration and Advanced Projects - Update
In the Northern Territory, the Exploration team worked on a review of various properties and has prepared drill programs for 2013. Revised resource and reserve calculations for a number of deposits have been initiated with a plan to produce updated estimates by the end of Q1 2013.
At Union Reefs, compilation of the 2012 drilling program results was completed and is being incorporated into a revised resource estimate. Desktop study work was completed and a decision on the next phase of work will be communicated upon the Company finalizing its three-year plan.
At Maud Creek, a revised resource estimate is in the process of being calculated. Desktop study work was undertaken in 2012 and was essentially completed by year end. A decision on the next phase of the project will be communicated upon the Company finalizing its three-year plan.
Building off exploration success announced by the Company in the third quarter of 2012, FGM began drill programs in the Harrier and Phoenix ore bodies with the aim of extending known reserves.
At SGM, as the mine continues to ramp down the underground mining environment in 2013, the Company has undertaken a detailed review of the known deposit extension on the existing mining lease with the potential to extend SGM's mine life. The Company expects to make decisions concerning such projects shortly and will be communicated upon the Company finalizing its three-year plan.
Additional details of the fourth quarter will be provided in the Management Discussion and Analysis report, which will be released in conjunction with the Company's annual financial statements by the end of March.
The Company is presently finalizing its three and five-year Strategic Business Plan. The Strategic Business Plans aim to prioritize those growth initiatives with the highest return on invested capital. The Company is in the final stages of analyzing each of its growth projects and expects to communicate its longer-term capital allocation strategy, including which projects the Company will advance and when, with the release of fourth quarter earnings.
About Crocodile Gold
Crocodile Gold is a Canadian company with operations in the Northern Territory of Australia and operating mines in the State of Victoria with a land package of over 4,000 square kilometres. Crocodile Gold is currently mining at the Fosterville and Stawell mines in the State of Victoria. In the Northern Territory, the Company continues to develop its Cosmo underground mine. The Northern Territory ore production is processed at the Union Reefs Mill with a capacity of 2.4 million tonnes per year.
At its Northern Territory properties, the Company has 3.175 million ounces of NI 43-101 reported Measured and Indicated mineral resources and 2.14 million ounces of Inferred mineral resources. These resources are inclusive of mineral reserves. (see the NI 43-101 compliant technical report entitled "Report on the Mineral Resources and Mineral Reserves of the northern Territory Gold and Base Metals Properties for Crocodile Gold Corp." by Fleur Muller, Mark Edwards and Heath Gerritsen dated April 4, 2011, filed under the Company's profile on SEDAR for the details regarding these mineral resource estimates).
At the State of Victoria properties, the Company has an additional 1.216 million ounces of NI 43-101 reported measured and indicated mineral resources (15.26 million tonnes at an average grade of 2.48 g/t gold) and 0.622 million ounces of inferred mineral resources (6.0 million tonnes at an average grade of 3.22 g/t gold) (see the NI 43-101 compliant technical reports entitled "NI 43-101 Technical Report, Stawell Gold Mine, Victoria, Australia" and "NI 43-101 Technical Report Fosterville Gold Mine, Victoria, Australia" prepared for Crocodile Gold Corp by James P Llorca of Mining Plus, and Neil Schunk of CP Mining dated April 9, 2012. filed under the Company's profile on SEDAR for the details regarding these mineral resource estimates). These resource estimates are exclusive of mineral reserves which total 0.472 million ounces.
Crocodile Gold has an extensive exploration program in place in the Northern Territory and is exploring on several key properties on its expansive land package. Crocodile Gold's main focus is on the Cosmo Mine, the Union Reefs, Pine Creek and Maud Creek project areas. In the State of Victoria, the Company has exploration programs in place designed to expand the resource base of each mine property.
For additional information, please visit our website www.crocgold.com. Follow us on Twitter (@crocgold_crk) or Facebook (www.facebook.com/CrocodileGoldCorp).
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 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, 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.
