TORONTO, ONTARIO -- (Marketwire) -- 03/01/13 -- Crocodile Gold Corp. (TSX: CRK)(OTCQX: CROCF)(FRANKFURT: XGC) ("Crocodile Gold" or the "Company") has reached commercial production at its Cosmo Mine.
During the last six months, the mine has sustained a development rate well in excess of its long-term requirements while increasing total ore production from less than 1,000 tonnes per day prior to September 2012 to over 1,650 tonnes per day in February 2013. At full production, Cosmo is expected to produce between 700,000 and 750,000 tonnes of ore per annum (or 2,000 to 2,150 tonnes per day) with associated recovered gold production of 75,000 to 90,000 ounces of gold.
-- Achieved an average ore production rate of approximately 1,600 tonnes per day during the last three months, which is equivalent to 75% of steady state production;-- Increased the ore grade from approximately 2.5 g/t Au to 3.5 g/t Au. At current production levels, Cosmo is expected to produce over 5,000 ounces of gold per month;-- Reached an average development rate of 535 meters per month over the last three months, in excess of 100% of the requirements for the next few years;-- Demonstrated excellent recoveries of gold on Cosmo ore, ranging from 91% to 94%;-- On target to reach full production rate of approximately 2,100 tonnes per day in the 4th quarter of 2013; and-- Commissioned the main surface ventilation system in February 2013 that will provide airflow requirements as the mine reaches its full production rate later this year.
Commenting on these important milestones, Chantal Lavoie, President and CEO of the Company, said: "This represents a significant achievement for our Company. The dedication and resilience of our team combined with the support and engagement of our key business partners and local government agencies were all essential to attaining successful commercial production at the Cosmo Mine."
Peter Crooks, General Manager - NT Operations, also commented: "Although some work remains to be done on major infrastructure such as expanding the underground electrical reticulation system, the ventilation airways network and the expansion of the underground pumping system, the key components are in place to bring the Cosmo Mine to a steady state operation." He continued: "A significant amount of effort has been made to better understanding of the deposit's geology and this will greatly assist in maintaining steady production. Four underground diamond drill rigs have been operating since last November in order to expand the resource and reserve base and allow the Company to better plan its future operations."
About Crocodile Gold
Crocodile Gold is a Canadian company with three operating mines in the Northern Territory and the State of Victoria in Australia.
At its Northern Territory properties, the Company has 3.175 million ounces of NI 43-101 reported measured and indicated mineral resources (51.849 million tonnes grading 1.89 g/t Au) and 2.14 million ounces of inferred mineral resources (36.352 million tonnes grading 1.80 g/t Au). 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).