(i) Crocodile Gold acquired, and accounted for, the Fosterville and Stawellgold mines with effect from May 5, 2012. Information presented prior to thisdate is for comparative purposes only.
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, resulting in total underground ore production of 105,824 tonnes, up from 97,359 tonnes in the third quarter and 57,070 tonnes in the second quarter. Mill production was supplemented by 113,446 tonnes of lower grade stockpiles resulting in total throughput of 225,055 tonnes at a grade of 1.95 g/t Au. Mill recovery was 90.7%, resulting in gold production of 12,829 ounces, up from previous quarter's production of 7,356 ounces as a result of higher throughput and continued strong recoveries.
The Fosterville Gold Mine produced 193,096 tonnes from the underground during the quarter at a grade of 4.92 g/t Au, compared to 176,036 tonnes in the third quarter at a grade of 4.7 g/t Au. Ore mined was supplemented by open pit material and total mill throughput in the fourth quarter was 207,838 tonnes at 4.92 g/t Au, compared to 183,854 tonnes at 4.68 g/t Au in the previous quarter. Fourth quarter gold production totaled 26,650, up 17% from 22,857 in the previous quarter, due to higher tones at better grades. Mill recovery was 83.8%, a 2% improvement from the prior quarter.
The Stawell Gold Mine continued with its transition plan that will see underground activities being completed in 2013. Ore mined for the fourth quarter was 209,849 tonnes at 4.13 g/t Au, compared to 201,789 tonnes at 2.81 g/t Au in the previous quarter. The average grade showed improvement as production was focused on stoping in the higher-grade GG6 area. Mill throughput of 218,485 was down 3% from the previous quarter, although strong grades and a mill recovery of 89.2% resulted in gold production of 22,669, up from 15,750 ounces in the third quarter. Capital development is now complete and remaining planned production will require minimal ore development.
As of December 31, 2012, the Company had a cash balance of $24,741,357 compared to $20,383,957 at the end of the third quarter. The net working capital deficiency at December 31 was $14,483,909, compared to a net working capital deficiency of $24,839,259 at September 30.
The working capital deficiency is impacted by the valuation of the derivative liability based on the gold price forward curve at quarter end. However, forward gold prices are not reflected in the valuation of current assets, such as in inventory, which continue to be carried at cost and do not reflect the eventual increased value realized through the sale of gold. The Company believes that macroeconomic factors will continue to support a strong gold price in the near to mid-term, enabling the Company to continue to generate strong cash flow from operations.
The 2012 financial results presented herein are preliminary in nature and unaudited. They have not been reviewed by the Company's auditors. Additional details of the fourth quarter will be provided in the Company's audited annual financial statements for the year ended December 31, 2012 and accompanying management discussion and analysis, which will be filed on SEDAR by April 2, 2013.
The Company is presently finalizing its three and five-year Strategic Business Plan. The Strategic Business Plan aims 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.