TORONTO, ONTARIO -- (Marketwire) -- 01/31/13 -- Crocodile Gold Corp. (TSX: CRK)(OTCQX: CROCF)(FRANKFURT: XGC) ("Crocodile Gold" or the "Company") announces results of a Preliminary Economic Assessment ("PEA") for the Big Hill Enhanced Development Project (the "Big Hill Project") located at its Stawell Gold Mine property. The Company has taken the first steps in the permitting process for the Project with the submission of an Environmental Effect Statement (EES) referral document to the State of Victoria, Australia.
-- Net Present Value of A$40.0M using a gold price of A$1,400/ounces and a discount rate of 10%;-- Production of 2.3 million tonnes at an average grade of 1.65g/t Au, recovering over 108,000 ounces of gold;-- Project duration of four to five years, including a planned rehabilitation program;-- Stripping ratio of 3.2 to 1;-- Upfront capital requirement of A$17MM-- The creation of 80-100 jobs for the Stawell Region
Crocodile Gold acquired a 100% interest in the Big Hill Project through its acquisition of the Stawell Gold Mine in May 2012. The Big Hill Project is the up-dip extension of the Stawell Magdala system, which is currently being mined from underground. The PEA outlines a possible open pit operation based on an updated independent mineral resource estimate, optimization study and design works carried out during the latter half of 2012.
Chantal Lavoie, President and CEO of the Company said, "This project represents an excellent opportunity to maximize the value and extend the life of the Stawell Gold Mine, further contributing to the growth of the Company's gold production while reducing operating costs. It is worth noting that this project will have access to our experienced workforce and well established business partners."
Adding to Mr. Lavoie's comments, Troy Cole, General Manager of the Stawell Gold Mine stated, "We are mindful of the importance of the Big Hill Project to the region and the value it represents. We are also excited about the opportunities that this project presents to the Stawell area and our ability to continue to contribute to the region's golden heritage will be determined through a responsible consultation program engaging community, local and state governments."
A copy of the complete PEA will be filed on SEDAR within 45 days of this news release in compliance with the National Instrument 43-101 Technical Report requirements.
The PEA conforms to the CIM Definition Standards on Mineral Resources and Mineral Reserves referred to in National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"). The qualified persons (each a "QP") who supervised the preparation of PEA are: Mark Van Leuven BEng in Mining Engineering, MBA (Technology Management), FAusIMM(CP), Principal Mining Engineer for Mining One consultants of, Melbourne, Victoria and, Stuart Hutchin BSc, Applied Geology, MAIG, MAusIMM, Geology Manager for Mining One consultants of, Melbourne, Victoria, Australia. Both QP's are independent of the issuer as defined by NI 43-101.
The PEA is preliminary in nature and is based on a number of assumptions that may be changed in the future as additional information becomes available. Mineral resources that are not mineral reserves do not have demonstrated economic viability. The PEA includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized.